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  #21  
Old 09-01-2006, 02:52 AM
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grass_cuttin_fool grass_cuttin_fool is offline
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!st thing is too not get in debt to far to quick and not buy more than you need. My accountant told me that a little debt is ok. Even if you have the money in the bank or invested. Too sum it up, intrest is a tax deduction,If you dont have many deductions for the buisness, then a loan is very good. Once Uncle sam gets your tax money its gone. With the loan you have something to deduct and maybe get back something from uncle sam.

wayne
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  #22  
Old 09-01-2006, 07:12 AM
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Tharrell Tharrell is offline
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Compound interest is the 8th wonder of the world. It either works for you or against you. You can't pull money out of thin air so, do what you have to do to get started or expand your business until you can manipulate money and interest to your advantage.
Debt free is an admirable goal but it may hold you back. Decide if that is acceptable or not.
Remember though, the debtor is slave to the lender.
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  #23  
Old 09-01-2006, 07:55 AM
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dlm17 dlm17 is offline
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ask yourself if you need the equipment, will it cut your time or allow you to do more or replacing unreliable equipment if so then financing is not an issue it will pay for it self, look at your cash flow if you take large amounts of your reserve it can set you up for problems later allways go for the lowest payment then if you can overpay on your payments it does the same as lowering your interest rate but gives you a cusion in case of slow times im not a financial expert but its worked for me for 16 yrs
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  #24  
Old 09-01-2006, 09:11 PM
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bigjeeping bigjeeping is offline
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There should be only one man on this board who doesn't believe in financing.. a muslim. Otherwise we are all business owners and should know that start-up capital isn't always handed down from ma and pa's estate. Starting a new business almost always goes hand in hand with financing, loans, etc.
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  #25  
Old 09-01-2006, 10:35 PM
guven guven is offline
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Quote:
Originally Posted by bigjeeping
There should be only one man on this board who doesn't believe in financing.. a muslim. Otherwise we are all business owners and should know that start-up capital isn't always handed down from ma and pa's estate. Starting a new business almost always goes hand in hand with financing, loans, etc.
I beileve financing is good if the rate is not very high, I want to buy scag ztr in spring with finance, I have the money but I do not want to put all my money in one mower, I am going to finance it, bye the way I am afraid of debt but what can I do, afraid afraid I got nothing.
thanks
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  #26  
Old 09-01-2006, 10:38 PM
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Jpocket Jpocket is offline
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It really depends...I personally took 3 years to pay off my 04' Lazer b/c my money was going elsewhere. IN those 3 years I bought Trucks, a plow, New trimmers, Blowers, Advertisning, Hired employees, etc. If I didn't grow sure I could have paid it off in a few months, but when your growing you need financing so that you can use your money elsewhere. Today I could probably pay cash for a new machine If I really needed one. it all depends on what you goals/motives are. Esp. if you have a family & home you mnay not have the cash just to oay everything off in one year. Mortgage, kids, new truck mowers etc., you might have to take a few years to pay off just to keep you cash flow free for other bills.
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  #27  
Old 09-02-2006, 06:34 AM
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Richard Martin Richard Martin is offline
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Location: Greenville, NC
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Quote:
Originally Posted by jarroo's lawncare
i was just wondering what your guys take on this was. i have been financing equipment to get started. last year i financed my viking hydro, i always make sure to get the one year no payments no interest when i do. i payed it off in just a couple of months. this year i bought my lazer z put in a few commercial bids got them and picked up around 30 residential accounts. i have the money to pay it off right now. i think i owe about 7500 dollars on it. the best thing is the season isnt over so there is some more money to be made. also my commercial accounts will pay me through march of next year. i am 21 and put in over 40 hours a week at a regular job and manage to get in 30 plus hours a week mowing.
I want you to do this... Continue making payments, get yourself a financial advisor and have him set you up a retirement/investment account where you can withdraw money (you will have to pay taxes if you do) from the account if you need it. This way you get a double dip on your money. You get to spread out your tax deductable mower payments over several years possibly lowering your tax bracket in future years and you get to deduct the money you are putting away for retirement now.

The only thing you will accomplish by paying off the mower in one big lump sum is a one time deduction. The little bit of interest you are paying on the loan is nothing compared to the payoff your investment will make later.
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  #28  
Old 09-02-2006, 06:42 AM
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noseha noseha is offline
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yardcard 6mos same as cash with 1.9%. I have only made payment on mowers (2) pay cash for all other
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  #29  
Old 09-02-2006, 10:32 AM
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ProStreetCamaro ProStreetCamaro is online now
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We financed our M48 Tank with 0% intrest for 3 years. every penny we pay in goes toward the balance. Its hard to beat that deal!
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  #30  
Old 09-02-2006, 10:58 AM
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TJLANDS TJLANDS is offline
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Location: JACKSON,NJ
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Quote:
Originally Posted by jtf40
Other than your home/property, there is NEVER an excuse for financing anything - even autos, lawn equipment, vacations, etc.
Bad advice, debt is part of business especially small business. Most if not all people cannot start a business without debt and surly could not grow and survive without it.
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