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  #201  
Old 03-10-2013, 07:34 AM
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clydebusa clydebusa is offline
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To each his own. Made up my mind in 2009 to be debt free. Got rid of the trucks I was making payments on and bought only trucks and equipment I can pay cash for. Since then the bottom line is really good and in this bad economy times that is a plus. Basically I just have the insurance to deal with. So if the equipment sets for a month no big deal. When you have debt you can't say that. I do agree that if you have the money and decide to do the zero % for xx months then that is okay. But the loan company is banking on you will be late and have to pay the complete loan with interest. But please if the ones that want the new equipment buy them, if everyone had my and other ideas we wouldn't have equipment to buy!
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  #202  
Old 03-10-2013, 08:39 AM
32vld 32vld is offline
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Location: LI NY
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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.
What you do works because you have the cash flow to pay the CC off in 30 days. Because the way you use credit works does not mena the use of credit is always the right way to go.

Most do not have the cash flow. Cash flow problems are why most new businesses go down.

And you are wrong there have been companies that have grown large without using credit.

Not anti credit. Against using credit poorly.
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  #203  
Old 03-10-2013, 11:49 AM
JimMarshall JimMarshall is offline
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Location: NW PA
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Quote:
Originally Posted by muddywater View Post
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.
Of course, my operation is probably a bit bigger than most here, but if they are offering 0%, I see no reason not to finance. That money makes me a lot more in interest sitting in my bank account than it does sitting in the dealers.
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  #204  
Old 03-10-2013, 12:21 PM
muddywater muddywater is offline
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Your interest is already built into the purchase price, so you arent saving anything. And money markets only pay 1%, so the advantage is negligible.

I am a smaller operation(alittle over 1 mil in sales), but i grew with no debt and if i needed to start 3 more crews i could do it without a loan.
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  #205  
Old 03-10-2013, 06:33 PM
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weeze weeze is offline
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Location: weezertonfieldville, AL
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Quote:
Originally Posted by muddywater View Post
I am a smaller operation(alittle over 1 mil in sales), but i grew with no debt and if i needed to start 3 more crews i could do it without a loan.
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that's not a small company by any means.

i make 50k a year gross or less.
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  #206  
Old 03-10-2013, 08:27 PM
zackvbra zackvbra is offline
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Quote:
Originally Posted by muddywater View Post
Your interest is already built into the purchase price, so you arent saving anything. And money markets only pay 1%, so the advantage is negligible.

I am a smaller operation(alittle over 1 mil in sales), but i grew with no debt and if i needed to start 3 more crews i could do it without a loan.
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What I ask you sir is what would you call a big operation??
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  #207  
Old 03-10-2013, 08:58 PM
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cpllawncare cpllawncare is offline
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Originally Posted by lawnkingforever View Post
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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I agree! I made a broad statement, I'm not ignorant to the fact that there are people out there with a ton of cash sitting in the bank, but the avg American has less than 30K in the bank, there are always exceptions. if your sitting on a ton of cash your an exception to the rule. I agree! cash is king, but then you have to recover that cash, how long does that take? and then if something does go wrong your just out a bunch of cash. If I have to give back a financed mower I'm only out the payments I made, I've never had this happen and don't expect it to, but I'm just sayin. I could pay off everything I have financed right now, I've got my purchases spread out so that every year something gets paid off, as well as adding business the bottom line looks better and better every year, I kinda think that's how it's supposed to be.
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  #208  
Old 03-10-2013, 11:10 PM
precisionlawnandlandscape precisionlawnandlandscape is offline
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[QUOTE=muddywater;4701027]And money markets only pay 1%, so the advantage is negligible.

Just refinaced $100,000 mortgage at 2.9%, current investments are averaging 20%+, investment profits are growing tax free each year and what small amount of mortgage interest i pay each year is tax deducible. Think i will keep traveling the current road im on for now, Why would i take $100,000 out of my investment money making 20%+ to save 2.9%? Now granted, you have to be smart here and not get carried away with debt. If it was an 8 or 9% mortgage like was common 10 years ago, now that would be a whole different story.
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  #209  
Old 03-10-2013, 11:19 PM
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cpllawncare cpllawncare is offline
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[QUOTE=precisionlawnandlandscape;4701676]
Quote:
Originally Posted by muddywater View Post
And money markets only pay 1%, so the advantage is negligible.

Just refinaced $100,000 mortgage at 2.9%, current investments are averaging 20%+, investment profits are growing tax free each year and what small amount of mortgage interest i pay each year is tax deducible. Think i will keep traveling the current road im on for now, Why would i take $100,000 out of my investment money making 20%+ to save 2.9%? Now granted, you have to be smart here and not get carried away with debt. If it was an 8 or 9% mortgage like was common 10 years ago, now that would be a whole different story.
I don't have a mortgage, my investments are growing tax free as well, but I'm talking strictly from a business perspective not a personal perspective I keep the two completely separate.
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  #210  
Old 03-10-2013, 11:21 PM
205mx 205mx is offline
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[QUOTE=precisionlawnandlandscape;4701676]
Quote:
Originally Posted by muddywater View Post
And money markets only pay 1%, so the advantage is negligible.

Just refinaced $100,000 mortgage at 2.9%, current investments are averaging 20%+, investment profits are growing tax free each year and what small amount of mortgage interest i pay each year is tax deducible. Think i will keep traveling the current road im on for now, Why would i take $100,000 out of my investment money making 20%+ to save 2.9%? Now granted, you have to be smart here and not get carried away with debt. If it was an 8 or 9% mortgage like was common 10 years ago, now that would be a whole different story.
Who the heck said to cash out retirement investments
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