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  #21  
Old 09-10-2007, 12:47 AM
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ON-THE-GREEN LANDSCAPING ON-THE-GREEN LANDSCAPING is offline
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Thanks for the info. I like used equipment. I just wanted to know but it does not matter. I just got a customer and signed them to $10,000 job and got 2,000 up front. I am in day 3 of job and almost done. Job includes stone work, all trees trimmed, all bushes, 8 drains ran out to street, all flowerbeds, sod layed in back 2 small trees relocated. It has been lots of work, but I picked up 4 jobs on the same street looks like about $20,000 + minus expenses. So I do not have time to mow anything right now.
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  #22  
Old 09-10-2007, 01:34 AM
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Americal Vet Americal Vet is offline
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Quote:
Originally Posted by ON-THE-GREEN LANDSCAPING View Post
Thanks for the info. I like used equipment. I just wanted to know but it does not matter. I just got a customer and signed them to $10,000 job and got 2,000 up front. I am in day 3 of job and almost done. Job includes stone work, all trees trimmed, all bushes, 8 drains ran out to street, all flowerbeds, sod layed in back 2 small trees relocated. It has been lots of work, but I picked up 4 jobs on the same street looks like about $20,000 + minus expenses. So I do not have time to mow anything right now.
I wish you the best of luck and continued success in your new venture.
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  #23  
Old 09-10-2007, 01:47 AM
Fairway Land & Lawn Fairway Land & Lawn is offline
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Originally Posted by Lawnworks View Post
I disagree. Not having to use credit, b/c your bank account is loaded is a great thing. Who needs good credit when you already have the money?
Everyone needs good credit, EVEN IF YOU HAVE THE MONEY!!! There is no reason to deplete your account of 6-10K all at once.... Congrats, you have a loaded bank account......try to keep it that way. Food for thought- Try taking the money that you would spend all at once on a peice of equipment and put it in a money market account. Generally they have a pretty good interest yield. Said interest that is accrued will help make the payment. Why do you think that many large companies are on a net 60 payment schedule. The longer their money hangs around, the more it becomes....Kinda like rabbits.... They get YOUR money to work for them, by making them more money. Think a little deeper, and make YOUR dollar worth more.....Simple bad credit is easy to change.

Last edited by Fairway Land & Lawn; 09-10-2007 at 01:51 AM.
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  #24  
Old 09-10-2007, 06:28 AM
Lawnworks Lawnworks is offline
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Quote:
Originally Posted by Fairway Land & Lawn View Post
Everyone needs good credit, EVEN IF YOU HAVE THE MONEY!!! There is no reason to deplete your account of 6-10K all at once.... Congrats, you have a loaded bank account......try to keep it that way. Food for thought- Try taking the money that you would spend all at once on a peice of equipment and put it in a money market account. Generally they have a pretty good interest yield. Said interest that is accrued will help make the payment. Why do you think that many large companies are on a net 60 payment schedule. The longer their money hangs around, the more it becomes....Kinda like rabbits.... They get YOUR money to work for them, by making them more money. Think a little deeper, and make YOUR dollar worth more.....Simple bad credit is easy to change.
Think a little deeper. Give me a break. How much money will you make on the interest of 10k invested in a money market account while paying off a piece of equipment? After you subtract the loan interest... it can't be more than 2-3%... and then you have to pay taxes on that... so it is virtually nothing. And you don't need good credit if you have cash!
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  #25  
Old 09-10-2007, 10:44 AM
CuttersEdgeks CuttersEdgeks is offline
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you still have to have good enough credit to do other things in your life. you have to play both sides of the table. you have to use your credit in order to get big ticket loans (home trucks ect.) but the small stuff can be paid for. pay 8k for a mower put half down and pay the rest over 6 months. if you have no credit it will screw you regardless of how much you have to show. if one of my kids gets sick and ran medical bills up how wuold you pay for it. chances are you would have to refi your house and if you have poor credit its not going to happen.
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  #26  
Old 09-10-2007, 12:49 PM
Fairway Land & Lawn Fairway Land & Lawn is offline
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Originally Posted by Lawnworks View Post
Think a little deeper. Give me a break. How much money will you make on the interest of 10k invested in a money market account while paying off a piece of equipment? After you subtract the loan interest... it can't be more than 2-3%... and then you have to pay taxes on that... so it is virtually nothing. And you don't need good credit if you have cash!
You are correct that amounts may be small. However, even if it only saves me $10 bucks over the term of the loan then I will take it.

Also, percentages are exponentially increasing. The more money that is there, the more money it will yeild. You are only thinking of just 8k sitting there. What is 5% of 20k? $1,000. What is 5% of 28k? $1,400. So, the more money you have around, the more it will make for you. Just for the record, you may think that I am sitting here making these statements because I am in debt up to my eyeballs. Quite the opposite. I OWN all of my equipment, I OWN my truck. The business now operates debt free. I did pay for my equipment outright when I bought it, and realized that it was a mistake. Everyone will make their own decisions on how to manage THEIR money. All we can do is help them make an educated decision.
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  #27  
Old 09-10-2007, 03:43 PM
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PlatinumLandCon PlatinumLandCon is offline
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Quote:
Originally Posted by Lawnworks View Post
Think a little deeper. Give me a break. How much money will you make on the interest of 10k invested in a money market account while paying off a piece of equipment? After you subtract the loan interest... it can't be more than 2-3%... and then you have to pay taxes on that... so it is virtually nothing. And you don't need good credit if you have cash!
LOL.... think about what you just said.

The idea of investing the money was not necessarily to profit off it, it was to have a loan that can have the payments offset my the investment. At the end of the term, you have no loan, $XXk invested and a free-and-clear piece of equipment.
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  #28  
Old 09-10-2007, 04:45 PM
fitzg2md fitzg2md is offline
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fairway - couldnt agree more. Come on guys, the point of any business is to make money. If spending an extra 5k will give you the opportunity to take on alot more work, then its a good idea. You do however need to have a good handle on the cashflow situation of your business.

Lets take buying a new truck for example. Lets say its 20k to make the math easy. If you are offered a 0% loan or the option to pay with cash (you happen to have the money in the bank just waiting), what is the best option. Well, I would argue to finance it. Let say you put it in a simple savings account that has a good return. Like ING..gets about 5.0% per year. Thats an extra 1000 in your pocket the first year. Drag that out to 5 years, and youve made a nice little sum simplly because you were able to use your money. Invest it in a money market and the return may be even better than 5.0%.

Now heres the key...that 20k in the bank is not money that you want to spend freely. It is already accounted for. If you NEED it really bad, then it is there to use, but you should know that you are now getting into trouble. You have spent that money twice (once to buy truck and once for other thing). Bad idea. What would you have done if the 20k wasnt there? Find another option right? So do that instead from the start. Cant look at it as "well, i have 20k in the bank"...you do, but its offset by your liability of the truck.

With a little discipline a 0% loan can be a real good thing. But if you cant afford a new 20k truck who cares what the % rate is! Thats irrelevent.
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  #29  
Old 09-10-2007, 05:13 PM
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PlatinumLandCon PlatinumLandCon is offline
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ALWAYS take a 0% loan offer. You'll make more money with the money if you don't buy the truck with it, especially if you're not paying interest.
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  #30  
Old 09-10-2007, 05:23 PM
KTO Enterprises KTO Enterprises is offline
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Originally Posted by willretire@40 View Post
I guess wal mart is debt free along with Donald Trump. The people that are sacred to use credit is the ones that will never make it to more then 100k a year IMO.
Spoken like a true fool. Last time I checked my dad doesnt use credit, buys 20 grand vehicle scanners and other equipment with cash money. Oh yeah and the 200 corvette and 1999 jaguar XK8 were also paid for with cash. He also makes just over 200,000 per year running his auto repair shop with NO EMPLOYEES.

Come on over and I will put some magic words in your ear and show you how to really make money.
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