Equipment Finance/Loan Options

bongi99

Hi All,

Have been in business as a Wedding Photographer since early 2015 initially part time but due to exponential growth its become my full time occupation in the last few months and I've given up the day job. I'm having issues sourcing financing for new equipment and am feeling like every door is being closed in my face. The equipment I need is naturally vital to me doing my job and one camera is starting to develop glitches that whilst fixable given its age repair cost is more than its worth.

I had an informal chat with my bank who advised I "don't fit their profile" and recommended I approach Microfinance Ireland, as did the LEO.

I applied to MFI for a small enough loan of €5000 and along with the reams of paperwork they ask for I typed up a simple business plan explaining who I was, what I did, where the business came from and projections for 2019 and on to 2020 (I did this even though for loans under 5k they dont ask for a business plan). I'm in a unique position that the majority of my clients will book at least 12 months in advance so I can tell now what 2019 looks like cash flow wise, had all my budgets done out and gave an insight into 2020 also as I do have a good few confirmed bookings already.

I was turned down by MFI due to a "competitive marketplace, unrealistic turnover projections and in general the business is not viable." Which felt like a massive kick in the teeth because I believed enough in the business to stake my future on it and give up paid employment, and also that the turnover figure I gave them for 2019 was 75% already on the books with existing clients. The remaining 25% was estimated on a booking rush that happens in Jan/Feb for the same year that I've experienced the last 3 years, and also other non-wedding jobs again taken from experience whilst I've been in business. I honestly don't think MFI fully appreciated this even though I had a 45 min conversation with the underwriter prior to their refusal and explained it thoroughly. It seemed like MFI were after the perfect risks that would be accepted by banks anyway. I don't like debt and my ICB report is clear I've never had issues with any loans I've taken out which have always been small. Credit card is in the wifes name and we've never missed a payment.

I'm not sure what to do next. Asking family is an option albeit not a very attractive one that comes with a good few strings and besides that I'm in my 30's and shouldn't be reliant on the bank of M&D. I've come this far without them. I could potentially use our personal credit card but that's fraught with accounting nightmares and also we try keep it clear for rainy days and holidays.

Does anyone have any advice? Can I appeal MFI's decision? Or does anyone know of leasing companies I could approach who would look at leasing/financing camera equipment & not necessarily plant?

Cheers!

antoinolachtnai

How long a term were you thinking for the loan?

And do you have your bookings in writing? How long after the job do you get paid?

bongi99

antoinolachtnai wrote: »

How long a term were you thinking for the loan?

And do you have your bookings in writing? How long after the job do you get paid?

5k over 3 years.

All bookings are confirmed with a contract signed by both parties and non refundable deposit. Remainder of a wedding package is to be paid on the morning of the wedding at the absolute latest or I don't start shooting. About 80% of couples pay the deposit and then balance on the day or 1/2 days before. I allow clients to pay installments by bank transfer if they wish at their leisure but very few do. A very small minority pay their whole balance at the time of booking or very shortly after

antoinolachtnai

If you have up-front payments, then can you not put enough together to buy the cameras you need, one-by-one?

If you have 80 grand's worth of sales expected in 2019 say, and 60 grand's already committed, I suppose you have 6 grand up-front?

Or is the money a good bit smaller than that?

You expect a load of money to come in in Jan/Feb as deposits?

Did you show the MFI guy the signed contracts?

Graniteville

Linked finance is probably best option.

Another option is leasing via flexifi

Both will be region 10% interest


A further option if you own your car is to sell the car, buy a car on a pcp and use money from sale of your car to purchase equipment

patrickdoc1959

Hello

Was in similar situation myself,

what sort of Turnover are you doing at present, Profit/loss etc