Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #111  
Old 10-22-2012, 05:26 PM
larryinalabama larryinalabama is online now
LawnSite Fanatic
 
Join Date: Jan 2008
Location: Ragland Al
Posts: 9,473
Quote:
Originally Posted by CL&T View Post
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.

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.
If you go finance all new equiptment and dont make the payments, the bank will take it back and sell it for 1/3 of what you paid for it adn sue you for the rest of the balance on the loan plus a whole lot of fees and they will WIN THE LAWSUITE. No one but the signer on a loan is taking a risk, you will pay the money back one way or another. If you think you can screw over banks I can assure you that they have the "courts" on their side and have far better lawyers than you can get.

On the other hand if you pay cash on equiptment thats a good deal if you have too sell it you can make money!
Reply With Quote
  #112  
Old 10-22-2012, 06:31 PM
CL&T CL&T is offline
LawnSite Senior Member
 
Join Date: May 2011
Location: New York
Posts: 487
Quote:
Originally Posted by larryinalabama View Post
If you go finance all new equiptment and dont make the payments, the bank will take it back and sell it for 1/3 of what you paid for it adn sue you for the rest of the balance on the loan plus a whole lot of fees and they will WIN THE LAWSUITE. No one but the signer on a loan is taking a risk, you will pay the money back one way or another. If you think you can screw over banks I can assure you that they have the "courts" on their side and have far better lawyers than you can get.

On the other hand if you pay cash on equiptment thats a good deal if you have too sell it you can make money!
What an idiot!
Reply With Quote
  #113  
Old 10-22-2012, 06:43 PM
larryinalabama larryinalabama is online now
LawnSite Fanatic
 
Join Date: Jan 2008
Location: Ragland Al
Posts: 9,473
When you learn a "wewittlebit" about how financing works and the Fact if you sign a "NOTE" for 10000$ you are personally liable to repay that note in its full amount plus interest, look in the mirror and you will see the broke person that you are.

Yall fellers should limit the name calling to the political threds.

Thanks clt!
Reply With Quote
  #114  
Old 10-22-2012, 07:12 PM
CL&T CL&T is offline
LawnSite Senior Member
 
Join Date: May 2011
Location: New York
Posts: 487
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.
Reply With Quote
  #115  
Old 10-22-2012, 07:35 PM
larryinalabama larryinalabama is online now
LawnSite Fanatic
 
Join Date: Jan 2008
Location: Ragland Al
Posts: 9,473
Quote:
Originally Posted by CL&T View Post
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?
Reply With Quote
  #116  
Old 10-22-2012, 07:37 PM
larryinalabama larryinalabama is online now
LawnSite Fanatic
 
Join Date: Jan 2008
Location: Ragland Al
Posts: 9,473
Mabey ..........PROCUT.....will be kind enought to link us to the "How not to succedd in the lawncare business", its likley to be the best thred in the "History" of LS. It will tak a while to read through it.
Reply With Quote
  #117  
Old 10-22-2012, 07:44 PM
JB1's Avatar
JB1 JB1 is online now
LawnSite Fanatic
 
Join Date: Feb 2000
Location: From the hills of beautiful Southern Indiana
Posts: 5,813
i think it great that some of you are debt free with houses and equipment. but i guess each his own.
__________________
Reply With Quote
  #118  
Old 10-22-2012, 07:47 PM
Pietro's Avatar
Pietro Pietro is offline
LawnSite Senior Member
 
Join Date: Apr 2006
Location: The Garden State
Posts: 829
Quote:
Originally Posted by larryinalabama View Post
If you go finance all new equiptment and dont make the payments, the bank will take it back and sell it for 1/3 of what you paid for it adn sue you for the rest of the balance on the loan plus a whole lot of fees and they will WIN THE LAWSUITE. No one but the signer on a loan is taking a risk, you will pay the money back one way or another. If you think you can screw over banks I can assure you that they have the "courts" on their side and have far better lawyers than you can get.

On the other hand if you pay cash on equiptment thats a good deal if you have too sell it you can make money!


actually, if you defalt, they can go after you...and repo the machines. But. If you sold the machines and filed for bankruptcy...there isnt much the bank can do other than deny you loans in the future. Once youre bankrupt, youre bankrupt. They cant sue you for something you dont have. However, I dont advise anyone to do this.
__________________
Pete
Reply With Quote
  #119  
Old 10-22-2012, 08:11 PM
larryinalabama larryinalabama is online now
LawnSite Fanatic
 
Join Date: Jan 2008
Location: Ragland Al
Posts: 9,473
Quote:
Originally Posted by Pietro View Post
actually, if you defalt, they can go after you...and repo the machines. But. If you sold the machines and filed for bankruptcy...there isnt much the bank can do other than deny you loans in the future. Once youre bankrupt, youre bankrupt. They cant sue you for something you dont have. However, I dont advise anyone to do this.
The Bush presidency changed the bankruptcy laws, so even if you file bankrupt, you will in most cases still pay back the loan, although it will take a long time.

A small business failure with a lot of debt can follow you for 20 to 30 years.
Reply With Quote
  #120  
Old 10-22-2012, 08:51 PM
grandview (2006)'s Avatar
grandview (2006) grandview (2006) is online now
LawnSite Gold Member
 
Join Date: Jan 2006
Location: Lancaster N.Y.
Posts: 3,375
Quote:
Originally Posted by larryinalabama View Post
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?
You buy the truck and depreciate over the same time .The truck technicality is now worthless to your business. And how much money did that truck make you in that time. And up here salt will eat your truck ,hard to keep a truck working for a long time. I just traded in a 2002 with 67k on it ,salt ate it.
__________________
www.grandviewlandscaping.com
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 10:27 PM.

Page generated in 0.08456 seconds with 9 queries