# Tips on funding for a new business



## Workaholic (Jun 27, 2021)

Hello all,
I have been involved in arboriculture for the past 7 years, ISA certified, college educated and have been a crew leader for the past 4 years. I did 2 years of landscape work prior to my arboriculture career. I have been planning on eventually starting my own company once I felt confident and comfortable since I first got into this industry, I have acquired a lot of the necessary skills to complete jobs safely and efficiently and have a fairly good idea on how to appropriately quote jobs. I have spent the last couple months pricing out equipment, and reading up on what I need to have in order to start a tree company where I live (Ontario, Canada). I have applied for my business license number, plan on getting WSIB coverage and insurance prior to taking on jobs. I do have a rough business plan typed out to the best of my ability, but need a loan to actually get things started. I planned on going to a few different banks to see if they can offer any kind of a business loan, but after listening to some youtube videos on start up businesses it seems like banks are pretty resistant to loaning money to new businesses (understandably so). 

So what I am asking is how did you guys get funding? Were the banks able to give you a loan and if so for how much and how much interest? I do plan on going in to at least ask them some questions but I'd like to have a better idea of what to expect before going in. Thanks in advance!


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## Doorfx (Jun 27, 2021)

How much are you looking to borrow?


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## Workaholic (Jun 27, 2021)

Doorfx said:


> How much are you looking to borrow?


Depends how much I can qualify for, ideally $90,000 would allow me to purchase a used bucket truck and chipper along with some extra saws/rigging gear that will be useful. But I can get started with $28,000 - 35,000 to obtain a truck with a dump box and I will just rent a chipper as needed and finance the additional equipment myself until I can show that I am generating a good profit to access more funding for a bucket truck and chipper.


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## ATH (Jun 27, 2021)

A few thoughts (You are in Canada, so some things may be different)

A) Do you NEED to borrow? Can you start with less equipment and buy it as you go?
B) Here there is a Small Business Administration that helps startups. I met with them when I was starting, and they really directed everything towards how to borrow money. Does CA have such an agency?
C) Do you own your house? Enough equity there to take out a line of credit or second mortgage? More risky, but may be the only way to get your hands on a loan depending on other circumstances???
D) Avoid borrowing money if you can at all...


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## Workaholic (Jul 1, 2021)

I own my house but do not have enough equity built up just yet, I bought it only a couple months ago. I cant do too much to get started without at least a chipper truck and some more equipment.


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## ATH (Jul 1, 2021)

A modest pickup (or even SUV) and a dump trailer is a lot cheaper than a chipper and chip truck...


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## MariHer75 (Jul 12, 2021)

I suggest you start small and grow as you go. borrowing should be the last resort.


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## KingBeee (Jul 12, 2021)

Borrow and start your business if you have the means to


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## KarlD (Feb 26, 2022)

My advice from experience, start small without loans and grow naturally. The numbers of guys over here on this little Island that immediately sink £70,000 into truck, chipper etc so that they can look like ‘the real deal’ immediately would amaze you. Yes they look pukka but you know they will spend the next couple of years working all hours mostly just to pay off their loan…and after those hard years the new shiny gear is and looks a lot less shiny. At least half of them fail to get through the first couple of years, which is where you come in and pick up their almost shiny gear for a much reduced amount. The amount of cheap almost new gear I have had off failed tree service start ups is a beautiful thing 

Also, avoid sales pitches. You don’t need anything except to do a good job, reliably and as quoted. Get these three basics right, tell all the ‘you must have this’ salesmen to FO and god willing you’ll never be short of work and income.

Good luck


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## Parkerpusher (May 23, 2022)

I would suggest starting smaller, with just a good looking truck and trailer. Those items are easier to get loans for (if you don’t already have). Any capital you have or can round up, use to hire good help. Find a guy with experience and pay him well, and be prepared to cover rain days and slow weeks to round out his pay. It’s amazing how fun it can be working through a stressful complicated job with limited equipment if you have another sharp mind to work out a good plan with. I would much rather start out with little equipment and good help, than fully equipped with a few hungover dudes working for beer money that just expect me to figure it all out.


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## mikewhite85 (Jul 15, 2022)

Well... what did you end up doing?

Whether or not you do a loan, do market the fact that you are Isa certified and a tree preservationist. It goes a long way to set you apart from competition.


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