In a worse case scenario, a car is probably considerably easier to repo than the antenna on my roof and radio in my attic. And the car would be worth a magnitude more money. The installed infrastructure is worthless if it costs a huge amount to get to it.
On Thu, May 21, 2009 at 07:27:09PM -0400, Tom DeReggi wrote: > I've never found a lender willing to lend against using the in-place used > equipment as colladeral. > It is the biggest double standard. > I find it highly ironic that they'll use a car for colladeral that looses > 50% of its value the day it leaves the lot, and has a rate of failure and > risk of damage higher than just about any product on the market, and it has > a huge cash burn (gas :-). but yet lendors won't put equivellent value on > wireless gear, that holds its value, Ebay boasting easilly 50% after 3-4 > years of use, even after fully depreciated. > I'll never understand the lending market. > > Tom DeReggi > RapidDSL & Wireless, Inc > IntAirNet- Fixed Wireless Broadband > > > ----- Original Message ----- > From: <[email protected]> > To: "WISPA General List" <[email protected]> > Sent: Thursday, May 21, 2009 1:55 PM > Subject: Re: [WISPA] Quesiton on Funding / Financing / Capital Availability > > > > Answers in-line. > > > > > > ++++++++++++++++++++++++++++++++ > > <insert witty tagline here> > > > > ----- Original Message ----- > > From: "Charles Wu" <[email protected]> > > To: "WISPA General List" <[email protected]> > > Sent: Thursday, May 21, 2009 8:49 AM > > Subject: [WISPA] Quesiton on Funding / Financing / Capital Availability > > > > > >> With all the hype being generated by the stimulus bill, we have been > >> approached by a multitude of third party financial organizations that > >> have > >> a renewed interest in potentially financing rural broadband...now, > >> specifically, for WISPs, in the past, equipment leasing has been a very > >> popular option for financing, but in looking at our numbers over the past > >> year, I've noticed a marked decline in the amount of leasing that we do - > >> that said, I have the following questions for the listserv about > >> financing > >> > >> Assuming that WISPs are still need to buy equipment... > >> > >> 1. Are you able to just purchase equipment out of cash-flow organically > >> generated from operations > > > > Other than originally starting with our own personal seed money, that's > > what > > we've done. > > > >> 2. Have you gone to more traditional forms of money (e.g., bank / SBA / > >> RUS loans)? > > > > I could not qualify for any of them. > > > >> 3. Are you doing more vendor leasing programs (e.g., Motorola 3% > >> financing > >> deal) > > > > Never sought any. > > > >> 4. Have you not been able to borrow money due to the credit crunch (e.g., > >> not deploying as aggressively) > > > > My corporation hasn't ever been able to obtain hard money credit. In > > fact, the "credit crunch" start last Fall raised my "30+ day past due" > > amount from a piddly $1200 to at one time to almost $13,000 in just four > > months. That almost put us under, and we're still barely scraping by > > until > > our seasonally variable cash flow revives come August, with still several > > thousand on the books that's very slowly getting chipped away at. > > > >> 5. Are you holding off on deployments because of the economy > > > > No, we're holding off due to lack of cash flow. We have plenty of people > > waiting for us to build infrastructure out to them. > > > >> 6. Have you gone to Agility...<cough> Louie the loanshark =) > > > > After much discussion, being some of the first people Agility contacted, > > we > > have not done any business with them. In my estimation, they wanted > > control over our business and day to day decisions, which we concluded was > > both unwarranted and unwise. > > > >> > >> Or any other thoughts / comments on this topic? > >> > > > > WISP equipment is not really a "commodity" in that there is almost no > > market > > for it outside of the "maker-vendor" relationship. Other than Ebay, and a > > couple of people who attempt to do it piecemeal, there is no "market" > > which > > stabilizes the value of used equipment, making them a commodity you can > > borrow against. > > > > Perhaps it would be more useful, if vendors had the ability to get capital > > and create stable working and short term credit relationships with their > > buyers, kind of like the used car market. > > > > > > > >> -Charles > >> > >> > >> -------------------------------------------------------------------------------- > >> WISPA Wants You! Join today! > >> http://signup.wispa.org/ > >> -------------------------------------------------------------------------------- > >> > >> WISPA Wireless List: [email protected] > >> > >> Subscribe/Unsubscribe: > >> http://lists.wispa.org/mailman/listinfo/wireless > >> > >> Archives: http://lists.wispa.org/pipermail/wireless/ > > > > > > > > -------------------------------------------------------------------------------- > > WISPA Wants You! Join today! > > http://signup.wispa.org/ > > -------------------------------------------------------------------------------- > > > > WISPA Wireless List: [email protected] > > > > Subscribe/Unsubscribe: > > http://lists.wispa.org/mailman/listinfo/wireless > > > > Archives: http://lists.wispa.org/pipermail/wireless/ > > > > -------------------------------------------------------------------------------- > WISPA Wants You! Join today! > http://signup.wispa.org/ > -------------------------------------------------------------------------------- > > WISPA Wireless List: [email protected] > > Subscribe/Unsubscribe: > http://lists.wispa.org/mailman/listinfo/wireless > > Archives: http://lists.wispa.org/pipermail/wireless/ -- /* Jason Philbrook | Midcoast Internet Solutions - Wireless and DSL KB1IOJ | Broadband Internet Access, Dialup, and Hosting http://f64.nu/ | for Midcoast Maine http://www.midcoast.com/ */ -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: [email protected] Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
