Originally Posted by grandview (2006)
Guys talk about how they paid cash to start their business. So technically you were in debt where you started. So how long did it take to pay yourself back you lent your company money?
Yep the money came from somewhere and needs to be repaid!!
I know this isn't necessarily a lawn thing but I recently purchased a car to take me to and from my full time job to save me money on gas for not using my truck, it's an 80 mile round trip commute. I paid $2000 cash for it. But here's the thing, I need to pay back that money before I save anything! I figured it out to take me about 10 months of commuting to finally start saving money in mpg. Basically as highlighted in bold above it took me 10 months to pay myself back for the car, although based on saving gas mileage money. So I get what grandview is saying and completely agree that even if you use cash it's still a loan you borrowed from yourself. The money could be in the bank or invested instead of tied up in equipment. I'm all for splitting it if you have it. Say you have $10,000 saved up and need/want a new zero turn. If you want to put $5k down and finance the rest go for it. Less needed to finance plus money still in the bank. I'll take a low interest rate any day though to keep the cash in the bank. Especially on the basis of many being solo and not having $100,000's of dollars in the bank. Now if mom and dad stepped up and just out right purchased you a truck, zero turn, and trailer....you are well on your way!!
I agree with Sean too....