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South Florida Lawns
07-05-2008, 03:25 PM
I'm looking at a stander, but I have no idea what to look for when financing it. Its a $5500 mower. Should I go through the dealer or my credit union that my truck is financed through? I have many assets that were financed through my parents, they are gone now so I'm basically clueless. I know I got enough credit to do everything on my own. I just need someone to steer me in the right direction.

grandview (2006)
07-05-2008, 03:34 PM
Both. You need to compare apples to apples. If you take the loan through either you should be able to pay then off early with no penalty. Always try to keep some cash flow available for emergency

bohiaa
07-05-2008, 03:57 PM
ask a family member to finance it for you....

Trust me, If family wont loan ya money, Noone else will....

Good Luck

MowHouston
07-05-2008, 04:03 PM
Why not just save up and buy it later down the road? That is, unless you absolutely know that you can pay it off with little or no interest. Otherwise you're really just throwing money away.

Maybe its just my personal preference, but I dont think financing is something that is required in the mowing industry. the money comes quick enough for me.

TPendagast
07-05-2008, 05:49 PM
Go through your dealer sheffield financing, they usually hav a special that will let you have 0% for 36 months or NO PAYMENTS for 6 months.
I went with the no payments and after I upgraded from my 48 belt drive to a 60" rider, I had made enough money with the upgrade to pay for it outright before I made a single payment. the 60"ZTR prouduced that much more than the 48 belt.... and I got ride of an employee i didnt need to boot. (ahh those were the days)

J&R Landscaping
07-05-2008, 10:25 PM
Sheffield or GE Money bank. Right now, many manufacturers have awsome deals. Several with 0% for 36 months.

South Florida Lawns
07-06-2008, 09:35 PM
Sheffield or GE Money bank. Right now, many manufacturers have awsome deals. Several with 0% for 36 months.

Thanks thats the way I was thinking on going, gonna go out tomorrow and see what kinda deals I can get.

grandview (2006)
07-07-2008, 05:56 AM
http://www.sheffieldfinancial.com/home.asp

DA Quality Lawn & YS
07-07-2008, 04:09 PM
South FL - why do you want to finance a mower?
Looks like you have lots of posts so have been in biz for awhile, use some of your cash flow from your biz to buy the machine outright. Debt is not the way to go.

mowerbrad
07-07-2008, 05:25 PM
Save you money and opay with cash. That is the smartest thing that you can do. If you don't have the money right now you shouldn't be buying it. I don't mean to sound negative at all but financing is not the way to go. Mow a few more lawns and save up enough money to pay with cash. Paying with cash is way smarter than financing, its almost as smart as not spending it in the first place.

poolboy
07-07-2008, 05:41 PM
Like so many have stated before...DON'T FINANCE.. Pay cash for it. Maybe you should check out the movie Maxed Out and Daveramsey.com before you do anything.

TurfBusiness
07-07-2008, 09:00 PM
If you can get more accounts and make more money, why wouldn't you use someone elses money at 0%. Keep your money in the bank and earn interest on that.

ed2hess
07-07-2008, 09:43 PM
I don't understand the reluctance to finance equipment trucks everything? How in the world are you going to build a business by accumulating money until you can afford it:hammerhead: Would the accountant make that recommendation? I don't think so. Money is darn cheap now.

mowerbrad
07-07-2008, 10:35 PM
I don't understand the reluctance to finance equipment trucks everything? How in the world are you going to build a business by accumulating money until you can afford it:hammerhead: Would the accountant make that recommendation? I don't think so. Money is darn cheap now.

Whenever you finance something you are in debt. Any person can tell you that debt is something you should try to avoid at all costs. For example: if you go to buy a new truck for $40,000 but have to finance it you shouldn't be buying it. You should instead buy the $18,000 used truck that you can pay for in cash. Do you understand what I am saying? If you need to finance a $5000 mower you should really get a few more accounts. $5000 shouldn't take you too long to save up if you work hard enough. Especially if you don't need the mower right now it then gives you some time to make that $5000 to pay for the new mower. Financing is one of the worst things you can do financially when purchasing a vehicle or piece of equipment. Don't finance!

TurfBusiness
07-07-2008, 10:53 PM
Most businesses would not hesitate to borrow at 0% to grow their companies. It is financially smart and a part of the business world. I would do the same in my personal life. Even if I had $30,000 in the bank to buy a new vehicle I would take the 0% loan and pay it off before charges accrue.

ffemtmcd
07-07-2008, 10:57 PM
Pay cash if you can - or even pay half up front if that's all you can get and you "have to have" this mower now.

Little piece of advice - NEVER BORROW MONEY FROM FRIENDS OR FAMILY - get togethers are never the same when you owe someone money. Trust me.

Firefighter337
07-07-2008, 11:00 PM
Little piece of advice - NEVER BORROW MONEY FROM FRIENDS OR FAMILY - get togethers are never the same when you owe someone money. Trust me.


x's 10000000000000

NEVER borrow from family. :nono:

TPendagast
07-07-2008, 11:14 PM
Most businesses would not hesitate to borrow at 0% to grow their companies. It is financially smart and a part of the business world. I would do the same in my personal life. Even if I had $30,000 in the bank to buy a new vehicle I would take the 0% loan and pay it off before charges accrue.

the reason why someone loans you money at 0% is they are hoping this will entice you to borrow MORE than you would with a higher apr.
They want you to borrow more that you can handle so you default then they wack you with 19%

Mis a payment, you will see.

Now you think you can make that $700 payment.
what happens when johnny lowballer swings in and takes $900 per month in accounts from you?
What if you get hurt? and cant work?
Poof there goes the farm!

grandview (2006)
07-08-2008, 05:51 AM
Cash is nice to have to buy things, but your missing the point on one thing when it's time to make a bigger purchase and you need to go the bank they don't want to hear you pay cash for everything. To them it mean you have no repayment history and they may not want to be the first one to try it with you.Now days everything is about your credit score and if you pay cash for everything you will have a lower credit score. Even if you finance it you can pay it off right away make a couple of payments build that credit history. This will help some of you younger guys who still live at home so when your ready to buy a house you will get a better interest rate for you house.

TurfBusiness
07-08-2008, 09:12 AM
the reason why someone loans you money at 0% is they are hoping this will entice you to borrow MORE than you would with a higher apr.
They want you to borrow more that you can handle so you default then they wack you with 19%

Mis a payment, you will see.

Now you think you can make that $700 payment.
what happens when johnny lowballer swings in and takes $900 per month in accounts from you?
What if you get hurt? and cant work?
Poof there goes the farm!

I guess I am assuming that there is a need for the new mower for bigger accounts, ect... I would hope that everyone would borrow using good business judgement. Should I turn down a $500,000+/yr contract for 5 years because I don't have $80,000 in the bank for equipment. I have already added the equipment cost in the bid.

punt66
07-08-2008, 09:32 AM
ask a family member to finance it for you....

Trust me, If family wont loan ya money, Noone else will....

Good Luck


Never ask family to loan money. If as you say your credit is good then finance it through the dealer.

punt66
07-08-2008, 09:39 AM
If you can get more accounts and make more money, why wouldn't you use someone elses money at 0%. Keep your money in the bank and earn interest on that.

100% correct. Here is my .02 I always finance my first piece of equipment. So i finaced my first mower ay 0% for 1 yer and 3.9 after. What i do is after the mower is paid continue to make payments on it but to yourself in a "equipment fund". Before you know it you will have enough to buy your second one in cash. Even though you paid cash, continue to pay yourself that payment. You become your own banker and it will allow you the freedom of low overhead costs and the ability to not be chained down to the business if you decide to walk away.

DA Quality Lawn & YS
07-08-2008, 10:11 AM
I understand your logic below, but don't totally agree with it.
Why would you leverage yourself as a means to save cash?
Can a guy not just save the same periodic amount in a money market fund (or similar) without the leverage payment to start things out?

0% financing (no fees, no strings attached) would be the only way I would consider leveraging - but still would try to accumulate the cash for the purch first.

100% correct. Here is my .02 I always finance my first piece of equipment. So i finaced my first mower ay 0% for 1 yer and 3.9 after. What i do is after the mower is paid continue to make payments on it but to yourself in a "equipment fund". Before you know it you will have enough to buy your second one in cash. Even though you paid cash, continue to pay yourself that payment. You become your own banker and it will allow you the freedom of low overhead costs and the ability to not be chained down to the business if you decide to walk away.

Lawn Enforcer
07-08-2008, 01:33 PM
Check at local banks, I got my FX 34" for 5.3% for 3 years.
Financing equipment is a good idea in my opinion. My mom and dad did this with every vehicle and they have an amazing credit score. Yeah, you may not have to buy a $40,000 truck now, but you may later and you probably won't have cash for it, or that new shop or house in the $100,000+ range, it helps to have a good credit score. My uncle bought a new mower and he had the cash for it, but he got a loan through his bank so he could build up his credit for when he bought his new truck. GOOD CREDIT IS GREAT TO HAVE! Hardly anybody can pay $100,000 up front. My friend said that he's going to pay for his house with cash. Terrible idea. Waste all that money on rent for all those years while you save up for a house, good luck!

DA Quality Lawn & YS
07-08-2008, 02:46 PM
Lawn E - anytime you pay interest to a creditor on something that depreciates over time, you are getting hosed. Cash is king.

ffemtmcd
07-09-2008, 12:46 AM
Most (not all) people will not repay the entire amount by the time the 0% is up - that's what the banks are betting on - and I would say by the looks of most bank buildings, they're right.

punt66
07-09-2008, 09:56 AM
I understand your logic below, but don't totally agree with it.
Why would you leverage yourself as a means to save cash?
Can a guy not just save the same periodic amount in a money market fund (or similar) without the leverage payment to start things out?

0% financing (no fees, no strings attached) would be the only way I would consider leveraging - but still would try to accumulate the cash for the purch first.


well it works for me. I dont have a note on anything. Not even on my new truck. I have 62 weekly accounts i do solo and plenty of money in my equipment fund. I have an Ira, wife has 401k, daughter has college fund. Non of which are growing all to well because of the market, but will recover. Anyway paying interest on equipment that depreciates is tax deductible and the equipment earns the business more money than it can without it as long as the equipment is needed to do the job. So even if these guys paid interest on it they are still earning. If they dont have enough business and i would say most on here dont if they are worrying about a little interest, then they shouldnt be in business. All business in all fields pay interest, cost of doing business. I Just pay myself because i work hard enough to be able to and im cheap. I would rather keep my hard earned money.

South Florida Lawns
07-09-2008, 11:47 AM
If you can get more accounts and make more money, why wouldn't you use someone elses money at 0%. Keep your money in the bank and earn interest on that.


Thats the way I always saw it.

topsites
07-09-2008, 03:55 PM
Yup, pay cash.
And this may sound harsh but a lot of times I look at it if I don't have the cash then I can't afford it.

If you can get more accounts and make more money, why wouldn't you use someone elses money at 0%. Keep your money in the bank and earn interest on that.

Because that money could end up spent long before the term of the loan is up?

Gee and how do I know about this? :p

You become your own banker and it will allow you the freedom of low overhead costs and the ability to not be chained down to the business if you decide to walk away.

So if you default on the loan then you don't feel no guilt about it,
and somehow this is better than those customers who stiff us?

Besides, loan or not the cost remains the same,
a loan does not lower the cost of doing business...
If it does anything at all it drives it up.
But then you did say the 'freedom of low overhead costs,' which
if one is free of a low overhead that translates to being
chained to high overhead so I could be wrong here
it's just I don't think that is what was meant...

I would think, as far as being chained to the business, if the equipment
is all paid up for that is the only freedom and the only way anyone
truly can walk away from it.

punt66
07-09-2008, 04:43 PM
Yup, pay cash.
And this may sound harsh but a lot of times I look at it if I don't have the cash then I can't afford it.



Because that money could end up spent long before the term of the loan is up?

Gee and how do I know about this? :p



So if you default on the loan then you don't feel no guilt about it,
and somehow this is better than those customers who stiff us?

Besides, loan or not the cost remains the same,
a loan does not lower the cost of doing business...
If it does anything at all it drives it up.
But then you did say the 'freedom of low overhead costs,' which
if one is free of a low overhead that translates to being
chained to high overhead so I could be wrong here
it's just I don't think that is what was meant...

I would think, as far as being chained to the business, if the equipment
is all paid up for that is the only freedom and the only way anyone
truly can walk away from it.



Im not going to play semantics over my grammer. My point is that i do not have a note on anything. Therefore i feel the freedom to do as i please, such as continue taking profits or stop and do something else with no consequences. My theory is you will always pay payments on something so why not pay it to yourself. It takes a little time to get ahead of it, but once your there your way ahead of the game. There are great financing deals out there that are worth using but i choose to save for equipment. I put $300 a month in the fund.

Im not sure your point, because it seems like we have the same thoughts and yet you somehow seem to disagree? Also 10,000+ posts. Do you work?

justanotherlawnguy
07-12-2008, 08:16 PM
Financing is one of the worst things you can do financially when purchasing a vehicle or piece of equipment. Don't finance!

That has to be one of the most ignorant things I think I have ever read on lawnsite....

Debt is part of business, look at any business and they have some sort of debt. Unless your a lawn guy living out of your 80's F150 and only accept cash as payment...

IF you can get 0 % for 3 years to buy new equipment, how can you afford NOT to do it....

mowerbrad
07-12-2008, 08:45 PM
That has to be one of the most ignorant things I think I have ever read on lawnsite....

Debt is part of business, look at any business and they have some sort of debt. Unless your a lawn guy living out of your 80's F150 and only accept cash as payment...

IF you can get 0 % for 3 years to buy new equipment, how can you afford NOT to do it....

Of coarse financing at 0% is appealling to anyone but there will always be payment on that loan. If something happens to your business and you are unable to pay off that loan you are then in deep water. If you don't have the cash to purchase the equipment upfront then you CANNOT afford that piece of equipment. When you buy that equipment you sure better have the money to back up the purchase even if you finance.

Green Finger
07-12-2008, 09:33 PM
Im not sure your point, because it seems like we have the same thoughts and yet you somehow seem to disagree? Also 10,000+ posts. Do you work?[/QUOTE]


wow ...........

this is truly the best thread in all my years of being on this site. I always thought about guys who HAVE brand new equipment and looking good but not making any money.

I have also thought about the times when i bought cheap equipment (trying to cut corners) and the equipment breaking down. ( should have financed something) and my day being ruined.

My point is with financing comes discpline and committment to your business. As I grow and my business grow I might strongly consider financing

best thread:usflag:

Gage7
07-12-2008, 09:51 PM
Agreed. Great thread!

phlandscaping
07-12-2008, 09:54 PM
ask a family member to finance it for you....

Trust me, If family wont loan ya money, Noone else will....

Good Luck

NEVER and I mean NEVER take a loan from a family member or give a family member a loan! Common courtesy!

Diamond Dave
07-12-2008, 10:11 PM
When I bought my Stander they had 0% for 24 months. I had the cash to pay for it, but I took the financing. It cost me $75 to process the loan through Sheffield, but I keep my cash in the bank earning interest. Seemed like a no brainer to me. :clapping:

lawnman_scott
07-13-2008, 12:21 AM
Of coarse financing at 0% is appealling to anyone but there will always be payment on that loan. If something happens to your business and you are unable to pay off that loan you are then in deep water. If you don't have the cash to purchase the equipment upfront then you CANNOT afford that piece of equipment. When you buy that equipment you sure better have the money to back up the purchase even if you finance.Would you also agree that people that cant pay cash for a home cant afford it?

VirginiaLawnCare
07-13-2008, 01:27 AM
I like to save money and either buy it straight up with cash or buy most of it with cash. I learned a long time ago financing things isnt worth it! Im still trying to dig myself out of the 20 things I have financed right now including my toro z mower.

marthanmike1959
07-13-2008, 06:40 AM
I'm looking at a stander, but I have no idea what to look for when financing it. Its a $5500 mower. Should I go through the dealer or my credit union that my truck is financed through? I have many assets that were financed through my parents, they are gone now so I'm basically clueless. I know I got enough credit to do everything on my own. I just need someone to steer me in the right direction.
My advice would be to wait save and pay cash your not gonna get ahead with a bunch of payments.

marthanmike1959
07-13-2008, 06:47 AM
Ah worshiping at the alter of the credit score.Sorry to dissagree that only shows you like to stay in debt.Which is your choice me how ever no way no how and im making through life just fine

ed2hess
07-13-2008, 05:16 PM
I am pretty amazed how many on lawnsite won't finance anything. I guess that isn't a bad thing considering most of the world does just the opposite and got into big trouble. I am curious how credit rating is affected if you don't buy anthing on credit card or loan?

grandview (2006)
07-13-2008, 05:52 PM
Question for you guys who save/bank a monthly amount of money for future purchases . I don't think you can just put money away. Your company needs to account for all money brought in so you will pay tax on that money before you put it away and as your saving this money that piece of equipment just went up in price because of cost steel and everything else. So between paying tax on the money your saving and price increases you cash purchase will more likely cost you more over the same term of your loan you could of gotten. As I stated before credit is everything and banks don't want to know you pay cash for everything they want to see repayment history. Even if you finance something you can pay it off faster.I also think if you pay cash you may only deduct the purchase in the current tax year so you maybe losing the depreciation on it which will cost you more in taxes. As a side note if your going to be in this for the long haul your body will thank you in the future for making things easier. No one is saying take out a 50,000 loan to buy all the new toys because that is what will get you into trouble .

punt66
07-13-2008, 07:38 PM
Question for you guys who save/bank a monthly amount of money for future purchases . I don't think you can just put money away. Your company needs to account for all money brought in so you will pay tax on that money before you put it away and as your saving this money that piece of equipment just went up in price because of cost steel and everything else. So between paying tax on the money your saving and price increases you cash purchase will more likely cost you more over the same term of your loan you could of gotten. As I stated before credit is everything and banks don't want to know you pay cash for everything they want to see repayment history. Even if you finance something you can pay it off faster.I also think if you pay cash you may only deduct the purchase in the current tax year so you maybe losing the depreciation on it which will cost you more in taxes. As a side note if your going to be in this for the long haul your body will thank you in the future for making things easier. No one is saying take out a 50,000 loan to buy all the new toys because that is what will get you into trouble .

I agree with you for the most part. In my personal life i have a mortgage, car loan, plenty of credit cards etc. My rating when last checked was 740. However for my business i financed my first mower and saved after that. You can absolutely count depreciation on equipment if you paid cash just not interest. You can also have more than one account for your business as long as its all on the books. As long as you have reciepts and sales thats all the big dogs want to know about. I chose this method early on for the freedom of walking away from the daily grind of mowing and not adding more personal debt since i am a sole proprietor. Which means all business aspects are directly attached to me personally. There are great finance deals out there and well worth getting into. I am not saying either way is better. But its nice to have the freedom.

ffemtmcd
07-14-2008, 10:18 PM
I am pretty amazed how many on lawnsite won't finance anything. I guess that isn't a bad thing considering most of the world does just the opposite and got into big trouble. I am curious how credit rating is affected if you don't buy anthing on credit card or loan?

Referalls - Current mortgage co., previous landlord(s), anyone you do business with - you can go to a bank that does it's own underwriting and get a loan, probably a better loan at that.

There are ways around the great and wonderous FICO score.

Lawn Enforcer
07-14-2008, 10:55 PM
Lawn E - anytime you pay interest to a creditor on something that depreciates over time, you are getting hosed. Cash is king.

But think of your credit, build it up so you can buy a house someday, or a more expensive truck. And sometimes you just need another mower and you don't have the cash right away. As I said before, GOOD CREDIT IS GOLDEN!

Blunt
07-16-2008, 12:43 AM
On the downside peaple are not as immortal as they like to think. One good car wreck or just slipping on a curb and shattering a hip. Or serious illness in the family You're insurance will only help just so much lost time co pays and uncovered medical will eat you up. My brother in laws brother had a heart attack and went into a coma his wife racked up 1.2 million in medical in just over a yr. insurance capped at 1 mill. Now try to make a living after all you're stuff has been auctioned.

South Florida Lawns
11-22-2008, 10:42 PM
Well I bought the mower after a lot of looking around. I did finance the thing for 14 months @ $400. So its not that bad. By doing that I can put a down payment on a house and looking at a used cab over Isuzu next summer.

Sweet Tater
11-23-2008, 07:39 PM
Thanks thats the way I was thinking on going, gonna go out tomorrow and see what kinda deals I can get.

Those are good if you plan and can pay it off in 36 months, however if you go over the established time, then they add the interest from the very beginning. It can come back and bite you in the a$$ really hard.
First off make sure you can under any circumstances make the payment. then make the payment first thing. Getting it financed, like some one else said make sure you can pay it off early with NO penility. It really doesn't matter who you get to loan you the money but shop for the VERy best terms and the lowest interest.
Your credit score says alot about you in the business world and if you screw it up, your screwed. Make sure you can afford what ever you are buying.