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  #191  
Old 03-06-2013, 08:18 PM
205mx 205mx is online now
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What an alarming thread.

Don't forget the interest rate of risk.
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  #192  
Old 03-09-2013, 12:30 AM
Jaybrown Jaybrown is offline
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Debt Free business

Finance an excavator if a tornado hits
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  #193  
Old 03-09-2013, 07:12 PM
muddywater muddywater is offline
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I have been debt free for the last 10 years. Why the pluck would I finance anything with money in the bank? It just doesn't make sense. If you have money in the bank/investments, you just don't finance. I am not going to be anybody b!tch while they are syphoning money away from me. And there just aren't many safe investments out there that are going to pay that much more than the interest rate.

I have found when I make a 30k truck purchase or a 20k equipment purchase, it makes me evaluate my ROI with a fine tooth comb. When you are financing, you are just looking at covering the monthly expeditures not the ROI after 5 years. If I spend 30k in cash, I want a return in months not years. I am not in this business to have cool equipment or trucks, I am in this business to put cash in my bank account.

How many people finance a 50k truck have 300k in their account? Sh!t they probably don't have 50k in their bank account, that is why they financed the truck.
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  #194  
Old 03-09-2013, 07:41 PM
AllBrad AllBrad is offline
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subscribe.......
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  #195  
Old 03-09-2013, 07:49 PM
JimMarshall JimMarshall is offline
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Quote:
Originally Posted by muddywater View Post
How many people finance a 50k truck have 300k in their account? Sh!t they probably don't have 50k in their bank account, that is why they financed the truck.
I think you assume too much.
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  #196  
Old 03-09-2013, 09:28 PM
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weeze weeze is offline
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Location: weezertonfieldville, AL
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i financed my mower but it was 0% interest for 3 years. i paid half down in cash and i'm one payment away from paying it off. bascially i've bought it in cash just over a longer period of time rather than all at once.
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  #197  
Old 03-09-2013, 11:54 PM
muddywater muddywater is offline
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Originally Posted by JimMarshall View Post
I think you assume too much.
No i have just bought out too many cash broke lco 's in the last 10 years. 90% of lco's dont have shat in their bank accounts. Its a fact, if your in the 10% congrats. After coming good friends with the biggest landscape nursery owner in town, i couldnt believe how many companies are sent to collections, have material liens on their jobs, and bounce checks.... but they all seem to drive 50k trucks.
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  #198  
Old 03-10-2013, 01:29 AM
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cpllawncare cpllawncare is offline
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Location: Greenville, SC
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Debt is not a bad thing as long as it's managed properly, debt free is not a realistic approach to a company looking to grow at any kind of pace. Had I tried to be debt free I would be out of business by now. I use my CC's all the time but they get paid off or damn near paid off every month. I look at people that try to stay debt free as generally being ignorant about how to properly manage the financial aspect of a company. No company got large by staying debt free.
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  #199  
Old 03-10-2013, 03:27 AM
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lawnkingforever lawnkingforever is offline
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Join Date: Oct 2007
Location: Pittsburgh PA
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Quote:
Originally Posted by muddywater View Post
I have been debt free for the last 10 years. Why the pluck would I finance anything with money in the bank? It just doesn't make sense. If you have money in the bank/investments, you just don't finance. I am not going to be anybody b!tch while they are syphoning money away from me. And there just aren't many safe investments out there that are going to pay that much more than the interest rate.

I have found when I make a 30k truck purchase or a 20k equipment purchase, it makes me evaluate my ROI with a fine tooth comb. When you are financing, you are just looking at covering the monthly expeditures not the ROI after 5 years. If I spend 30k in cash, I want a return in months not years. I am not in this business to have cool equipment or trucks, I am in this business to put cash in my bank account.

How many people finance a 50k truck have 300k in their account? Sh!t they probably don't have 50k in their bank account, that is why they financed the truck.
Well said.
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  #200  
Old 03-10-2013, 03:39 AM
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lawnkingforever lawnkingforever is offline
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Quote:
Originally Posted by cpllawncare View Post
Debt is not a bad thing as long as it's managed properly, debt free is not a realistic approach to a company looking to grow at any kind of pace. Had I tried to be debt free I would be out of business by now. I use my CC's all the time but they get paid off or damn near paid off every month. I look at people that try to stay debt free as generally being ignorant about how to properly manage the financial aspect of a company. No company got large by staying debt free.
Have to agree to disagree on this one. I choose to stay a smaller operation by choice. But if I wanted to outfit a couple trailers with equipment and grow I could do it tomorrow without financing a dime. I have lived below my means for a long period of time and have made the right investments to have the capital to do so. I choose to be debt free, but there is nothing wrong with debt if that is what you choose to do. To say you cant grow without having debt is a pretty broad statement. Maybe you cant, but there are plenty of people that can outside your world.
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