Any opinions on the best way to finance a new mower?

[Jon99]

I mentioned this before, but would like to go a little further in detail..

I am starting up a business in the spring and I won't have the cash to get things rolling without a little financing.. What I plan on buying is one new ZTR mower as my workhorse, try to find a slighly used 36" WB, trailer, trimmer, blower and a few of the other main stays... Should I walk into my bank and ask for a business loan with a line of credit??? Or just go in and ask for a loan to buy a mower and pay for everything else out of pocket???? Thanks

[65hoss]

You would probably not be able to get a business loan. Get the loan to buy the mower and then get everything else yourself is the best bet.

You have plenty of time, why not save it up? Get a part time job, use the mower you have and get a few yards to cut on the side. Most of us started that way. Just a thought.

[Jon99]

Here is the deal.... First off, I need a big mower to cut my parents farm since thats part of the deal of my using their shop and buildings to PM my mowers and store everything... I don't think I want to use my 21" Deere to mow the 3 acres... :)

I would love to save the $10K I estimate to start the business, but not sure I will be able to accomplish this... Right now my wife makes decent money as a school teacher and I am getting unemployment plus work a few days a week mowing for a guy... With plans of starting the business in the spring, over the winter I plan on either sub teaching or working for an accounting temp service to give me some cash, yet not eliminating my flexibility...

My problem is that we just threw all of our cash into buying our house(we only put down 15%, home equity loan is not an option) and I have always maxed out my 401K, so at the moment I am very cash poor, with only about $3K in our savings which I don't want to touch since thats our e-fund...

Its just wierd, our net worth is about $200K but its all tied up in assets I can't touch...

[65hoss]

Oh yea, I remember you posting something about this. What about a loan from you parents since it will their farm as your biggest customer? If not, bank loan and try to get the cash to handle everything else.

[Cut 2 Please]

Several financial corps. have deals they with the different brands of mowers. I financed my Ferris through Sheffield. They had a special lease program at 6.9% for 3 years. Not a bad deal. All of the manufactures have the financing options listed on their web sites. I suggest you give them a look. Many times a local banker might be scared of financing a mower and give a higher rate. My $.02.

[WashMoBrink]

In business some debt is good but be careful as a start up. I started with a used Great Dane ZTR that I could pay cash for, and waited for the income stream to pay for the new stuff. My humble opinion.

[bruces]

Depending on what you are buying, the manufacturers have some good financing programs.

For examply, right now I believe Toro has 0 down , 0 pmt, 0 interest for one year.

Other companies probably have similar programs. And these programs change from time to time.

This could be an option if your credit is ok.

A straight business loan for a start up might be tough to get.

Good luck.

[Jon99]

Well what I have been thinking about doing is tossing it onto my 9.9% credit card or even better yet, finding a 0% Intro offer for several months... For some reason though, the stigma of adding credit card debt scares me...

And I agree Washmobrink, its not my first choice to take on debt, but because my assets are not liquid my choices are limited.. Plus with my wife having a stable job that covers almost all of our living expenses, I can get by with minimal initial cash flow..

[MacLawnCo]

Your coment about credit cards sparked my brain into remembering about some guys buying things on their 0% credit cards, and just before the cards went to higher rates, they got new 0% cards and just switched their balances. Im pretty sure you can do this and just keep switching the balance until you no longer have a balance. If this works, you then got a loan with no interest. Hope this works:D , but it sounds too good to be true.:mad:

[Jon99]

Well hopefully if they give me 12 mos of 0% I could have the balance to the point that the interest wouldn't hurt me.... If I charge $5K, pay $3K down in the 12 mos, leaves me with a balance of $2K... Worse case scenario I pay it off in year 2 and walk away with a financed mower that I spent less than $200 in interest on...

[Cut 2 Please]

Just talked to the Toro dealer in my area. Toro is offering no interest and no payments for 12 months.

[Dennis E.]

Not to make waves but leasing could be another option. I did a lease a few years back with a bunch of office equipment(computer,fax,etc.) and a new ZTR combined. Rate was 10%.
Monthly write-off vs. depreciation.
Used Advanta but they are no longer writing any new business.
Very little out of pocket and decent interest rates.
Just an idea.
:)

[KenH]

Usually with the credit cards, they have 3 months 0% ONLY if you agree to keep card for 1-2 years. read the fine print....when you sign/use the card, you agree to their terms. be careful

[awm]

watch those zero,zero zero deals.
ive heard that with some deals the yrs interest that was waived,is added ,once u go into the interest phase .
not a financeer but u might make sure on that one.

[Jon99]

I have looked the deal over and over, 0% interest thru August, 2003 on all balance transfers, they even waive the $30 transfer fee.. I can charge it on my Citibank and then turn around and transfer the balance due to the 0% card...

I was going to wait until this winter to buy the Tiger Cub, but after talking to the local Scag dealer (who also happens to be the guy I work for), he was given two 48" models to sell at the promo price of $5995, once he sells these two the price will be $7200.. Now the thought is popping in my head to buy the mower now and try to get a few accounts yet this summer...

[Cutter1]

exmark has the same offer as toro.......12 months same as cash. I'm going to do that then, Either get a loan after 11 months so I don't get charged the year of interest, or just pay it off :)

[Jon99]

Be careful with those "12 months, same as cash deals"... Its not a mower, but a few months ago we bought a sofa and the guy offered us 6 months, same as cash... After a little talking, I asked if he would give us a better deal if we payed cash... Instead of paying $1450 with the 6 month deal, walked out of there with the couch for $1280... So before you think you are getting a good deal, you might want to ask what his price is if you pay cash..(if thats an option)

[LAWnENFORCER]

Jon99,

I recently financed my ztr. I hope you are SURE you will be able to pick up the accounts for cash flow. I think at least one or two WRITTEN contracts are needed to guarantee the cash. I made due with used stuff untill I got the accounts needed.

Just my opinion and good luck

KB LAWN SERVICE

Kevin

[Jon99]

Worst case scenario, I don't pick up any accounts and I make payments on the mower with my temporary jobs, whether it be substitute teaching or in the accounting field, until I land accounts.. I view this as a business venture, I realize that if it doesn't work out I will take a slight loss, but its a risk I am worth taking.. To me, spending the extra money for reliable equipment and a professional look is worth the risk..

Of course, I am also keeping one eye open just in case I do run across a mower with very few hours..

[ADMowing]

Our trailer and new ZTR is financed through Sheffield. If you are in it for the long haul, get financed so that you have the equipment to do the job right. Sounds like you have other income avenues and don't need to worry about making the payments. You'll have the equipment you need and when you get the accounts, you'll be ready! Its rough at first, but I think it pays off. We wish we could afford to buy everything in cash, but it isn't a reality for us.

Sheffield will finance lots of stuff related to LCOs -- used equipment too!

Good luck to you!

[lahanko]

IMO
I like to buy NEW, no headaches is worth quite a bit to me.
New or used it will still set you back plus it is easier to sell a fairly new machine than an older machine if things do not work out.
It would be a shame to lose a good account because your machine is broke down. How much is that worth?
I would put a small amount down and make the payments, think of it as a lease. If things do not work out sell it for what you owe and walk away.
What ever you do never ever look back. There is always “I should have done this” or “I could have gotten a better deal over there”.

“”””Money is worthless unless you spend it””””