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Towing Co purchase

by marilynnd8, Window Shopper

  • Created: October 13, 2010, 10:34 am
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2 comments

I am looking for capital to purchase an established towing company, this company is currently leasing my property to operate the business (Snohomish, WA)

I would need to invest in a class B tow truck (its called a heavy in the towing business) cost of approx $80,000 used

I will hire a salesperson to expand growth for the company

Hire two additional drivers

No additional office personal, the curent owner is required to stay on for one year for training, ( paid employee) as pre the RTTO (Registerd Tow Truck Operator)

I managed my own trucking company for 35 years intra/intrestate,

I am looking for a venture captilist to invest or loans to fund this purchase of $ 100,000 for the business, plus additional equipment and start-up costs

 

Tags: Discuss Popular Topics, Loans & Grants
‹ How to finance a loan? Help for existing businesses ›

phanio | Contributor | 10/14/2010 - 4:49 am

Your chances of getting VC capital is very slim unless you know some private investors in your local area. There are several ways to get the capital you need. Banks are probably out of the question since they are not lending to small and new businesses. But, there are other non-bank lenders that have stepped up to fill this funding gap. There are several non-bank equipment lenders that only deal with business equipment (like your tow truck) that have programs for new businesses or owners in your situation. Plus, they want your business and will work with you. There are also several other ways to secure a little unsecured working capital to meet your other needs. Lastly, you can always ask the current owner to hold the note on the vehicle.
Professional Web Site: http://www.businessmoneytoday.com/

JimD | Former Moderator | 10/13/2010 - 10:40 am

marilynnd8, Venture Capitalist tend to look at very high growth potential companies. They are also looking for a percentage of ownership, so they are actively involved in managerial decisions. You may be better off trying to get a loan and paying the bank back. This would allow you to keep ownership. For information on loan, check out the Business.gov section on Loans. There are other means of financing as well, you can take a look at the Ultimate Guide to Financing. JimD