Thread: Loans?
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Old 10-22-2012, 01:26 PM
32vld 32vld is offline
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Join Date: Feb 2011
Location: Long Island, NY
Posts: 3,970
"If you have the work and are flush with cash I can see your position. But I can also see a company financing equipment that has the work, doesn't have the equipment to do it and doesn't yet have the cash reserve. "

Getting a new account and getting a loan to get that equipment because they can afford to pay off the loan even if they lose that account is one thing.

"I look at it this way; if they didn't have the equipment they couldn't do the work. If the work doesn't pan out worst case they lose the equipment. If they spent their own money and the work didn't pan out they would have equipment sitting there worth less than what they paid for it and no money in the bank to salvage the business. So this is an example of of letting someone else take the risk instead of you. I'm also of the opinion that with what the banks and financial industry did to this country I have no problem screwing them for a change."

Another way to look at it if the work does not pan out the equipment gets repo'd. Their credit score goes down the drain. So the next time they want a loan instead of getting a loan at 5% they will be offered loans at 19% because of their bad credit history.

If they bought that machine cash and the job went bad that machine would sit in their yard until they got more jobs as the one they lost. They could tell the customer we have the equipment and can start tomorrow to close the deal.
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