# Who wants to loan me $3000 dollars?



## RMThompson (May 21, 2009)

LOL I hope that the title doesn't turn TOO many people off, but seriously, who here has gotten a small business loan for their business?

I feel like I am $3000 dollars away from a MAJOR upgrade in my kit, but don't know where to get that amount of money?

Any suggestions?


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## Josh66 (May 21, 2009)

Not sure if this is an option for you, but you could take a loan out of your 401k.
(Not sure if you have 401k or not...)

I know my bank (credit union) runs a deal every year a month or two before Christmas where you can get a low interest loan for up to $5000.  Your bank may have something similar...


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## RMThompson (May 21, 2009)

O|||||||O said:


> Not sure if this is an option for you, but you could take a loan out of your 401k.
> (Not sure if you have 401k or not...)
> 
> I know my bank (credit union) runs a deal every year a month or two before Christmas where you can get a low interest loan for up to $5000. Your bank may have something similar...


 
Good idea, but I took whatever was left of my 401k when I lost my job last year. Ever since, it's just been photography for me.


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## JodieO (May 22, 2009)

What about a credit card for temporary funds?


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## itznfb (May 22, 2009)

i wouldn't borrow any money unless i had a organized plan to pay it back. what do you plan on spending it on? lighting i hope?


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## bdavis (May 22, 2009)

Pull out a loan, charge on credit card and pay it off, work hard and save up your money, or do some shoots and charge people!

It will give you a greater feeling of satisfaction (and experience) if you work for it.


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## NateS (May 22, 2009)

Hmmm...credit card or loan is both a bad idea in my opinion (coming from a former huge credit card debt guy).  The problem is.....and I quote "I don't know where to get that kind of money".  So say you borrow 3,000 or charge 3,000 on your credit card.  You still don't know where to get that kind of money (to pay it off) and now you're paying interest on it every month while you don't know how to pay it off.  Before you know it, you've ended up paying 4,000 to have the 3,000 worth of equipment that is possibly outdated or worn out and ready for upgrading by the time you finally pay off your 3 grand.

Save up.  I'd reccomend banking about 200 a month for a few months and when you are comfortable...then see about getting a loan payment for the difference with payments around 200/month since you know you'll be comfortable with that payment.

Edit:  If you could save 200/month for 5 months you'd have 1000 of your money.  Then you could get a personal loan for 2000 financed for 1 year.  Pay 200/month on the loan and it would be paid off in less than a year.


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## bdavis (May 22, 2009)

NateS said:


> Hmmm...credit card or loan is both a bad idea in my opinion (coming from a former huge credit card debt guy).  The problem is.....and I quote "I don't know where to get that kind of money".  So say you borrow 3,000 or charge 3,000 on your credit card.  You still don't know where to get that kind of money (to pay it off) and now you're paying interest on it every month while you don't know how to pay it off.  Before you know it, you've ended up paying 4,000 to have the 3,000 worth of equipment that is possibly outdated or worn out and ready for upgrading by the time you finally pay off your 3 grand.
> 
> Save up.  I'd reccomend banking about 200 a month for a few months and when you are comfortable...then see about getting a loan payment for the difference with payments around 200/month since you know you'll be comfortable with that payment.
> 
> Edit:  If you could save 200/month for 5 months you'd have 1000 of your money.  Then you could get a personal loan for 2000 financed for 1 year.  Pay 200/month on the loan and it would be paid off in less than a year.




Of course doing the credit card/loan is a bad idea. I was just throwing that out if he needed the money ASAP. The best option is to just save the old fashioned way


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## Moon Baby (May 22, 2009)

The only thing I'd take a loan out for is a house and a car.
I worked 2 jobs and busted my balls to afford $5g's worth of gear in a couple months. It's totally doable.


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## JerryPH (May 22, 2009)

Moon Baby said:


> The only thing I'd take a loan out for is a house and a car.
> I worked 2 jobs and busted my balls to afford $5g's worth of gear in a couple months. It's totally doable.



House = good debt
Car = BAD debt.

What is the value of a house in 2 years? (answer: more than it was 2 years ago)
Ask yourself the same question but with a car. (answer: about 50% of what you paid for it, if you are lucky!!)

The best debt = NO DEBT.   

I have a credit card that is lightly used and zeroed out each month.  The credit margin is for larger amounts but emergency only.

This credit rating BS is just that... BS.  Have no debt, have a good steady income and you can tell *all* the credit companies to KYA.    My credit rating according to the CC companies is 125 (can you say it sucks?)... yet how come I can be pre-approved for a 1.35 million dollar home at my bank in 20 minutes???

Here is what I say:  Work hard, save, buy in chunks and research the CRAP out of anything you buy to maximize your monetary investment.

Stay OUT of debt.


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## NateS (May 22, 2009)

JerryPH said:


> Moon Baby said:
> 
> 
> > The only thing I'd take a loan out for is a house and a car.
> ...



Not the best timing for that example cause in this economy??? your house is probably worth about 10-20% less than it was 2-3 years ago.  My parents bought a new construction 3 years ago when the market was strong for 217,000.  If they sold right now they'd be lucky to get 199,000....if it would even sell.

That said, a house is an awesome investment if you can afford to buy right now since you could get a nicer house within your budget than if the market was stronger.

I do agree with the no debt is the best debt and man...having no car payments rocks.


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## Josh66 (May 22, 2009)

NateS said:
			
		

> ...having no car payments rocks.


Tell me about it...

I have only gotten one vehicle financed (the truck I have now) - I can't wait till it's paid off.  I'm not used to being this broke, lol.


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## Johnboy2978 (May 22, 2009)

NateS said:


> Not the best timing for that example cause in this economy??? your house is probably worth about 10-20% less than it was 2-3 years ago.  My parents bought a new construction 3 years ago when the market was strong for 217,000.  If they sold right now they'd be lucky to get 199,000....if it would even sell.
> 
> That said, a house is an awesome investment if you can afford to buy right now since you could get a nicer house within your budget than if the market was stronger.
> 
> I do agree with the no debt is the best debt and man...having no car payments rocks.




Your parents bought when the market was in at an inflated rate.  Don't go into debt for equipment.  If your photography business can't justify it or necessitate it or pay for it, you don't need it.  Unless your business is "too big to fail" and you qualify for a government bailout then you are treading on dangerous territory.  Jerry offered some very good advice.  Save all you can.  Get a second or third job if it's that important to you.  Debt only makes you a slave to the lender.


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## raptorman (May 23, 2009)

JerryPH said:


> House = good debt
> Car = BAD debt.
> 
> What is the value of a house in 2 years? (answer: more than it was 2 years ago)
> ...



And what's the added value of a car when you need one to get a pretty secure job but can't afford one? I'd take a loan for a car too, but only when it makes the difference between a job and no job / crappy job.


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## RyanLilly (May 24, 2009)

Do any credit card companies still offer a 0% introductory apr for a year? I know its a slippery slope, but a little self control goes a long way. Not sure about the stale of small business loans in this economy, but it cant hurt to just stop into your bank and ask about your options.


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## KmH (May 25, 2009)

Sell some plasma.


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## Steamy-Lens (May 26, 2009)

Find a rich girlfriend.


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## blash (May 26, 2009)

I'm a pretty heavy credit card user (use up 70-80% of my limit each month) but I ALWAYS zero it out at the end of the month. It is worth it to charge everything to the credit card instead of dealing in cash due to the rewards that result from using the card (cashback, frequent flyer miles, et al) but you have to be VERY CAREFUL to monitor every cent you pay to make sure you can pay it all back at the end of the month. If you can't handle that kind of tracking then don't bother using a credit card. Mint.com helps a ton.

Carrying a balance can be OK so long as you do the math and you work out a plan on how you're going to pay it off - never carry more than 1 major purchase on balance at a time, and always zero out the balance before another major purchase.

And for the last time, CREDIT IS NOT FREE MONEY. Don't just take out a loan assuming you can pay it back; in fact, it's better to save up because you will spend less in the end.

Houses are (generally) good investments, especially in bad economies (buy low, sell high). Cars are not - always buy a used car, the more used the better.


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