iDRY Kiln Financing with Jeff Coiner
iDRY Kiln Financing with Jeff Coiner
When it comes to owning a small business there are a lot of new avenues to consider, one of them is equipment financing. This month we sit down with Jeff Coiner, the man responsible for helping so many current iDRY owners get their kilns financed.
“I underwrite, so to speak, every one of the deals, and I’m there for the customer. I like to make sure that we're going to win, I'm a really poor loser”
-Jeff Coiner
Jeff is a long-time business owner and has had his fair share of successful companies. He has also been in the wood industry for a very long time so he knows a thing or two about what a business needs and what a lender is looking for.
Photo Credit: @branchnbark
Equipment Financing for Small Businesses
There is no denying that the world of equipment financing can be confusing, which is why having someone on your team who understands it is so crucial. Jeff says in an ideal situation an easy loan with great rates would have the borrower fitting these categories:
3-5 years in business (there are exceptions)
Good / Decent credit
Money in the bank
Comp credit (comparable credit)
Comp credit is basically when another lender has lent the borrower an equal amount at some point, and they've paid it as agreed. Unfortunately, Jeff has run into some less than ideal scenarios with the way comp credit is handled.
“I've had guys that have had a million dollars worth of equipment, but and their lender hasn't reported it. So nobody knows they've ever bought a dime. There's a reason behind it, it's called a captured customer. If they don't report it, the customer can't go anywhere else.”
-Jeff Coiner.
Jeff explains that the key is that establishing good commercial credit is absolutely essential, as essential as a checking account. Once you're established and have your credit established, it’s much easier for your company. As an example, if a customer bought an iDRY Plus for $90,000 bucks, and paid it as agreed, it’s an extremely simple process for Jeff to secure their financing if they are ready to invest in another kiln.
Photo Credit: @carolinaurbanlumbersawmill
Supporting iDRY Customers with Financing
Jeff goes to bat for his customers and does everything he can to get the best terms and rates possible. He also often works out a 90-day delay on the first payment to give kiln purchasers time to start generating income on their new purchase.
“Sometimes it takes folks three months to start generating positive income, so that's the idea behind it. I don't want them to be hurt. I want them to make a ton of money”
-Jeff Coiner
The thing with financing is that there are so many scenarios and options, it all comes down to listening to what Jeff needs to put together a good proposal for a lender. Ultimately good credit and money in the bank are paramount.
If you’re a startup, it’s all about building up that business credit and getting your accounts in order to show you can make the payments. Something key you can also do is dry other people's wood to your proposed iDRY in your business plan.
The bottom line is, you're putting wood in and you're pulling lumber out. Wood has very little value other than firewood. Lumber, on the other hand, there's a lot of value-added.
Photo Credit: @wildedgewoodcraft
The Benefits of Financing a Kiln for Your Business
“As for the kilns themselves, the team at iDRY really tells you everything you need to know. I see them built and talk to the guys that build them and they love working there. It’s also all in the welds, the ones you don't see are as good as the ones you do. It’s integrity, doing something perfectly that nobody knows about.”
-Jeff Coiner
The care and dedication iDRY has to help wood businesses improve their ROI and increase the quality of their product extends to financing a kiln as well. Jeff makes a point to not send out applications to several lenders because he wants to protect the credit of iDRY customers and not have several people run it. He reviews the application, interviews lenders, and deals with the bank before it's ever sent.
For start-ups, an iDRY kiln that will increase your high-quality lumber output can be a game-changer for your business. The last thing you want when you’re establishing yourself is sending out a table that hasn’t been kiln dried and ends up warping or having bugs burrow their way out. For start-ups thinking of financing a kiln in the future, Jeff suggests that even if your business isn't active selling wood today, get it done. Then open up a bank account and put money in it, don't touch it, let it grow as big as you can.
The addition of a kiln to an existing wood business or as a stand-alone drying as a service business is an incredible investment. There is a shortage of kilns and an increase in local lumber industry support and revenue.
If you’re interested in learning more about financing a kiln, join us on Zoom, February 23rd at 12:00 PM EST for our “How to Finance Equipment Costs for Your Business” webinar, sponsored by Acres of Timber and iDRY.
iDRY’s equipment financing specialist Jeff Coiner and Customer Support and Sales Specialist Paul Grenier team up to talk about how to get equipment financed. We’ll discuss the process, a series of examples with outcomes, and everything you need to know about leveraging business credit to start financing your equipment.