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Enough Already?

Determining how much money you need for an equipment loan

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This story appears in the June 2001 issue of Entrepreneur. Subscribe »

Q: To fulfill a contract my business just landed, I must buy new equipment. How can I be sure I borrow enough money from the bank?

A: There are a lot of things to consider when approaching the bank about an expansion loan. And if you don't ask, you won't get. So add up all the potential costs-such as closing costs, installation fees charged by the vendor to put in the equipment, construction costs to integrate the equipment into your plant, and working capital needed to support the expansion prior to getting paid by the customer and the like.

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