my banker says we have the WORST credit ratings as a profession

[GarPA]

had to open some new accounts with my credit union yesterday...have a good relationship with the vp there..gives me what I need when I need it...so after we talk about me doing his property I asked him why? it was always well maintained so why do you want to change? he says the lco wasn't paying his bills and was bouncing checks all over town....now heres the bad part...then he launched into his spiel that people in this business have about the worst credit ratings of ANY small business.....now I know there are alot of 'here today gone tomorrow' guys in this racket...but he says its worse than I imagined...I was kind of embarrassed in a way as I slinked out the door. Often here we talk about improving our image and reputation as professionals...and we ARE professionals....but it seems we still have alot to improve...how we look, act, pay our bills and so on ...kind of a weird post I know...but the more we hear how we are perceived, maybe a few more of us will raise the bar a notch or two

[Harvestman]

We are big on image. Clean trucks. Clean uniforms. I don't want people to think "I hope they leave before my company gets here". We also pay our bills on time if not early.I also do this in my personel finances. I think if you are honest you can stand proud, and it will pay off for you in more business. Harvestman

[leprechaun_50]

...I was kind of embarrassed in a way as I slinked out the door.


If you are giving your customers full value for the money they
pay you, there is no reason to feel embarassed. You can't help it that there are some scumbags in every business, includeing banking!

[Brickman]

One thing to keep in mind, credit unions are not business oriented in any way. They cater to the personal side of banking. So this guy may not have been very informed, as for credit ratings I couldn't say. I did get a 5 yr loan for my Walker thru a bank, when I approached my credit union they asked WHY I needed a $10,000 mower. Why not go up to Wal Mart or K Mart, that would be cheaper??????? YES INDEED, WHY NOT. They will give loans for motorcycles, ATVs, boats, but not a business loan to a working man. WHATEVER.

[dougaustreim]

The statement is right. The landscape industry as whole does have a bad reputation. It is a business that is easy to get into and hard to stay in. The seasonality of it is part of it, and the concept that anyone can do it, leads to lots of people trying it and the perception from many customers that all they have to do is get the cheapest price because anyone can do it.

We are in a University town here, and every year there is one ot two new businesses started by recent graduates or drop outs. It seems that the landscape and lawn field is the only one. None of them become other types of contractors etc.


Bank of American does not issue their Business Credit Cards to companies in the landscape industry based on business type, no matter you credit rating.

Doug Austreim
Austreim Landscaping

[heygrassman]

he says the lco wasn't paying his bills and was bouncing checks all over town....

kinda of an invasion of privacy and why would he communicate this to someone else.

[John Allin]

This is one reason many of us here harp on the newbies to get their pricing where it SHOULD be... so they can pay their bills.

Too many in this industry have little, or no, business background and then price their services at "what the market will bear"..... and then don't understand when someone like me comes along and says that pricing in this fashion is a fast way to go under.

[ADMowing]

When we bought our house, we had to prove our income a lot more than when we were employed by other types of businesses before. We didn't have the hassles with proving our income like we have since we've been in the lawn service industry. But, they are comforted when they see our good credit report!

Our bank here in Florida caters to us GREATLY! They know us by name and if we ever have a problem -- it is taken care of promptly.

I think your banker was second rate -- like Leprechaun and heygrassman said here -- it doesn't show him to be very professional by divulging personal information about another lawn service to you! Also, I agree that there are lots of people besides lawn care professionals who don't pay their bills. I think I'd find a different bank! What is he telling others about you??? He should have been the one slinking!!!

We just got a loan to get an enclosed trailer to house our equipment. We were going to build a garage and decided to get a rolling one instead! No problem with financing.

[proline32]

Yep, same issue here..... I wanted to get a new John deere SST so I can retire the proline mid walk and sit my butt down for a change instead of standing behind the machine and being pulled around, my bank would rather be held hostage by terrorist holding anthrax than give me a loan regardless of my credit( getting loans was never a problem when I was working for someone else) It's the same with trucks, I used to be able to go to the ford dealer and buy a new truck no problem but now they won't even offer me credit at decent rates any more because I'm self employeed. So I went and bought a used truck and paid cash for it, I'll never buy a new truck again. As for the new john deere, well, I put $1000 down and john deere financed the rest at 5.9% over 4 years no problem. So you can get credit at dealers if you have a good credit rating. But it is an issue, thier are lots of loosers out thier making this industry look bad, the paint contracting industry has had the same problems for years and they are trying to do something about it with professional trade associations and educating the contractors, The lawn care industry really needs the same, Unfortunately there are a lot guys out there and they are trying to make a living just like us, it's just that they are ruining our market to do it.

[PetalsandPines]

Nothing gets me pissed off more than applying for equipment purchase credit...From the day I started my business nearly 10 years ago to today I have been fighting these corporate A$$Holes for an opportunity to achieve my dreams.These bank don't want to know nothing about your business, all you are is a credit score and that is it....They don't want to know that you are turning away hundreds of potential clients a year, cause you can't take chances without a substantial commercial line of credit. They only give you a little here an there...just enough to keep you alive but not prosperous. I am so freakin frustrated, I feel that I'm going to burn out trying to take it all on myself and pay cash for equipment. Don't believe that Consumer Credit Counseling **** you see on TV either......Rebuild your credit my A$$! I applied for credit through Sheffield (Scag) mind you I had already built a solid relationship with them and paid a loan off as agreed. And the dealer hands the phone over to me and the woman from sheffield has the audacity to tell me...I see you were on a Consumer Credit Counseling program, what's to say your not going to go on it again? sorry we can't give you the loan. While my roommate who has more student loans than all my equipment's value get's lines of credit for $20,50 or more thousand! Where's the justice here? Yet these banks continue to lend to these corporate giants that file for bankruptcy but the working man pays the price. It just isn't fair...My bank slaps it's name on our sports arena for how many millions and won't give me a $6,000 loan for a lawn mower...HELLLOOOO????

[yardboyltd]

Think about all the guys mowing lawns out there. Only 10% of them take it "seriously". The other's I do not consider part of the green industry, rather I consider their job title an occupation, rather than a profession. BIG DIFFERENCE.

Also, the comment about how "scrubs" should get there pricing up is part right. In general they need to improve their business sense all around.

[Just Turned Pro]

Just a thought....

Is it that LCO's have bad credit... or that people with bad credit and financial issues become LCO's?

Like many people have said over the past year on this board... any person with a mower and a car can be self-employed as an LCO.... Does that attract some people who are just looking for a way to get extra $$$ to make ends meet and pay bills? Probably.

Credit ratings build for years… and years. So does your banks trust in you as a self-employed client. I would guess that those here who have consistently proven that they can run a profitable company have no problem getting credit. On the other hand, those who are new will have low credit scores and be considered a high-risk… look at how many businesses in general fail and how many “home” businesses truly succeed because I’m sure your bank will.

Hmmmm... the chicken or the egg?

[Tony Harrell]

Compound interest is the 8th wonder of the world. It either works for you, or it works against you. Don't expect something for nothing and you'll feel a lot better. Don't get mad at me but, the banks are in business to make money. They walk a tightrope with unsecured loans. Get yourselves in a better cash position and you'll get all the credit you'll need despite the "reputation" of our industry. Yeah, I know, if I had cash I wouldn't need a loan. That's not a new one. I have not used any credit since '92 in my personal life. And I saved for my equipment purchases for this business. If I see something I want, I wait and pay cash. I have more of everything since changing my attitude and developing some discipline. I know this is a frustrating topic but, really, when you don't expect cooperation you don't feel frustrated when it doesn't happen.

[awm]

ive always thought that the misstake
most made is that of getting in over yor head when u start lawn care.
1st u may change your mind after a year.
2nd u need to get equipment that fits your ability. i dont care what equipment u have ,u cant possibly do the quallity of work that those w several yrs experience can do.
the results is u end up either not wanting this type work or over your head in debt that u cant cover un til u gain abilities and build your buisines.
JMHO

[ohiolawnguy]

yep, yep, and yep. there is a guy i know here in akron who worked for a lawn company for years-like ten. he eventually got a job with the fire dept, and would still mow occasionalyy for his former employer.

so, today i found out that he is starting his own lawn company to run on his days off from the fire dept. . he bought everything new except the truck. enclosed trailer with racks, new bobcat w/b, red max blower, little wonder 8hp etc. etc. i wish him the best on his new venture, but i can't see spending all that right off the bat without havig guaranteed customers. i don't know if he financed or paid cash, but i gotta think that he financed some of it.(or credit card)