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  #61  
Old 10-03-2011, 03:37 PM
lawnagent lawnagent is offline
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Emptying the account to pay cash for a big purchase shouldn't be to bad if you are debt free. Everything you make this week and next week and wala! alot of cash on hand again.
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  #62  
Old 10-03-2011, 10:17 PM
larryinalabama larryinalabama is offline
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Location: Ragland Al
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Quote:
Originally Posted by stan the man View Post
15 years in business 10 years debt free. 4 houses debt free. all trucks and all equipment debt free
Thats why they call you stan the man
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  #63  
Old 10-03-2011, 10:43 PM
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RSK Property Maintenance RSK Property Maintenance is offline
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Location: Manchester,CT
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having a debt is okay, you just have to be smart about, and can't go buying new equipment and trucks for fun, but if you need to upgrade or even want to and know you will have work for said equipment then its not bad to finance it, but if you only have 1000 dollars a month in work and go out and buy a brand new scag turf tiger with a 61" deck and turbo diesel motor, and a brand new trailer and then a 2011 f550 dump to pull it all, that would be dumb. but if you have 10,000 dollars of work every month and need a bigger trailer to fit all of your equipment on it at once, then ya borrowing 3500 isn't a bad idea at all, you just have to be responsible with your money and make smart purchases. also planning out how and when you will be able to pay off whatever debt you get into isn't a bad idea either.
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  #64  
Old 10-04-2011, 08:37 AM
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stan the man stan the man is offline
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Quote:
Originally Posted by larryinalabama View Post
Thats why they call you stan the man
the reason they call stan the man. is stan the man is my uncle.
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  #65  
Old 02-04-2012, 04:30 PM
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BESSY12 BESSY12 is offline
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Join Date: Dec 2011
Location: Ontario
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I am running pretty well debt free. I usually don't buy anything until I can pay upfront in full, (only exception was the mower i bought spring of 2011 in a pinch). Currently the only debt I have is to my father for repairs on the bumper of his pickup truck. (LONG STORY)
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  #66  
Old 02-04-2012, 07:39 PM
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wildstarblazer wildstarblazer is offline
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Join Date: Nov 2007
Location: South Georgia
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Quote:
Originally Posted by diamondlandscaping View Post
I'm totally well off. I could have dropped the 3k and paid the mower off. If Incan get 36 mo. 0%, I will take that every day. If making a payment each month is a headache, maybe you shouldn't be in business. Everyone keeps saying cash is king, so by having more cash on hand, that makes more sense, correct?? For guys just starting out in business, an offer like this is especially good bc they can get new equipment at a small monthly rate without paying any interest. New is nice. New means way less downtime. Plus, your bank isn't giving you money back. They give you points which in turn you can get cash back. I need 15k on my cc for 120. If it makes sense to you to pay cash up front so you can have 25, go for it. I can't make sense how an offer like this doesn't make sense to you??
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I agree with diamond, cash flow is important.
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  #67  
Old 02-04-2012, 11:56 PM
ReddensLawnCare ReddensLawnCare is online now
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Join Date: Dec 2010
Location: Charlotte, NC
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Quote:
Originally Posted by hackitdown View Post
I am 7 years into this business, and was all cash/no debt until this year. I decided to buy an Exmark ZTR for $10K this spring. I planned to pay cash.

I financed instead. They offered 0% financing for 3 years. I used the cash I had saved for the mower to buy an aerator for $3K, and I bought a plow for $4K. The aerator will generate $3K to $4K in revenue, and the plow will generate around $8K this winter. I have the option of paying down the loan anytime.

So the way I see it, I have $11K extra revenue because I bought the other equipment. After I deduct the $7K I paid for the equipment, I will have an extra $4K in gross profit. Next year I'll have all $11K.

I think it makes sense for me since I have a very high likelihood of keeping all the equipment busy enough to generate enough revenue to fund the purchases. I think some guys get into trouble because they buy and finance stuff that sits in the yard. They want to be sure they have every kind of machine made.
Not trying to be a jerk, but do you regret that decision now? With the snow plow?
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  #68  
Old 02-05-2012, 07:34 AM
USA Lawn Care USA Lawn Care is offline
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Join Date: Jan 2011
Location: all over the place it seems
Posts: 62
In a perfect world, using debt 'wisely' will always work out.
It is not a perfect world and what paying cash for equipment takes out of the equation are things like natural disasters, etc. Cash eliminates risk. Financing thousands of dollars worth of equipment because you just landed tons of new clients because of your great marketing looks like a great plan until something happens.
Ex: Solo business operator. All ready for the big mowing season. Financed $15k worth of equipment. Tragedy in the family occurs and he's mentally just not able to function. Or.....I keep bringing it up simply because when I heard about Joplin, MO last year this exact scenerio was what I was thinking about. What about all the lawn guys who had counted on mowing yards that are no longer there???

So.....to truly protect yourself, the safe bet is to just completely think the $$ plan through and just pay cash. Buy used gear.....make a little money....sell used gear....get a little better gear......save a little more money....sell the better used gear....buy nice gear.

Just some friendly advice and I hope everyone has a profitable 2012.
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  #69  
Old 02-05-2012, 08:54 AM
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jsslawncare jsslawncare is offline
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Join Date: Feb 2011
Location: North Georgia
Posts: 1,677
Debt free business and personal life. (except my house)
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  #70  
Old 02-15-2012, 04:58 PM
agent walker agent walker is offline
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Join Date: Feb 2011
Location: Sesser,IL
Posts: 398
debt free all my life. Tho I'm still single and at home and don't have any property. Hopefully this year I'll make enough to change some of that
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