Originally Posted by CL&T
Example: a person bought a car or a truck for instance and couldn't keep up the payments. They sell it to pay off the loan or the person who buys it assumes the loan. Ok, depending on what the vehicle is worth at the time maybe they had to kick in a few bucks but it wasn't the end of the world and the bank didn't send the storm troopers out to get them and their children. Hopefully they learned from the experience.
You sir are the one who needs to learn about the real world and lose the ignorance. If being debt free makes you feel warm and fuzzy that's your personal choice. But making the blanket statement as fact that debt will ruin your business just illustrates your ignorance.
At least your talking somewhat like a businessman, may I ask how long have you been in business???
OK so a person buys a new 50k truck that that couldnt afford and cant make payments on the 50K. The truck almost immediately leaving the lot lost 10k in value, so in the best of cirmistances the "borrower" has to take a "personal loan" if he can get for the 10k difference. Then lets say everything goes great and after 5 to 7 years and the ztr runs into the side of it a few times, and the interior is wornout from being filthy after long days of lawncarwork, the truck is worth around 8k, not the worlds best investment even if everything goes good.
My point about is now and has alaways been that in increases the "Risk" of a failed business, not that it automacially means failure, althought in this industry its very common. Not to mention that borrowing money on assets that go down in value is a recipe for being poor.
We should keep a open disscussion, Im curious why every thinks they need to borrow money for a lawncare businees?