business loan for solo op

Discussion in 'Starting a Lawn Care Business' started by goodfriend, Jul 18, 2007.

  1. goodfriend

    goodfriend LawnSite Member
    from MA
    Posts: 7

    just want to ask for solo op guys(lawn care/landscaping) who started out with zero equipments (or just a few), how much business loan did you guys took out from the bank, what equipments did you buy, or what did you use it for, and how many years till you paid it off? thank you!
     
  2. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    Ok Im probably not going to tell you what you want to hear but it will be the best for you. Dont go and get a loan most banks what you to borrow more than 10k you can try for an SBA micro loan but they will look at your personal credit, I imagine you dont have any business credit yet and even if you do they will still use your personal credit. Do a search for the how to build business credit thats the quickest and the fastest way to do. You can get up up to 25k.


    I would try to buy good used equipment until you have the income to invest yourself fully with dependable income. Then and only then you should invest in bigger and better equipment. This website is a tremendous source of information read between the lines not all what you hear is true.
     
  3. N.H.BOY

    N.H.BOY LawnSite Bronze Member
    Posts: 1,604

    Start part time and keep your other full time job (if you have one) and start slower, you dont really want to come out with a BANG with all new stuff and only a hand full of customers. I got a 0% apr from cub cadet years ago and the lawns I had paid for that in two seasons. Check around for mowers like craigslist and all, you really might not like the work and it would suck to lose NEW mowers than old ones. This is my thoughts. Welcome and good luck.
     
  4. echeandia

    echeandia LawnSite Bronze Member
    Posts: 1,131

    I got a business loan from PNC for $18K. I used it to buy a truck, mower, handhelds, and had some left over for working capital. Getting a business loan from a bank is one of the best ways to begin establishing business credit. Yes, in the beginning of any new venture you will have to personally guarantee any loan (including loans from manufactures). However, your objective should be to get and payoff a business loan then to get another for more and pay it off. Keep repeating this until you can then get a line of credit. Then you will have credit available and not have to worry about something happening that could destroy your business because you didn't have money available. Loans from manufactures WILL NOT provide you with this flexibility.
     
  5. CircleCLandscape

    CircleCLandscape LawnSite Member
    Posts: 6

    I think getting a bank loan is great; however, get some business with the equipment you have, then expand. I started this year and I'm using the stuff I have 22 inch Toro, string trimmer, blower, you know stuff like that. I has been very hard to stay focused when I seen guys with new stuff, but I have to remember, "in all due time!" I have been lucky enough to have decent amounts of work to keep me pretty busy. Now, I that I'm working to expand, I can take a solid business plan with productive revenue and get a loan based on the business I have and what I can project in the future (when doing bids over fall/spring) Have to start making money before you spend it!!
    Good luck!
     
  6. nobagger

    nobagger LawnSite Gold Member
    from Pa
    Posts: 3,065

    This is how I started, I actually looked into starting my business about 8mo's before I bought anything. I did this for years for some one else so I had experience. I saved some money then started out by subbing from a large lawn care company and he had a 48" Exmark Viking they were trading in so I bought that and the nice thing is he deducted it out of my checks. I paid $900.00 w/bagger and Velkie. I sold my car in order to buy a nicer truck, bought a 6.5x12 open trailer (new), new 21" Husq. Troybuilt trimmers (which lasted a year) then bought Echo trimmers and blowers, we have upgraded every year until last and this season. Now we're set for equipment (yeah right,lol) but all of our stuff is top of the line and I'm not bragging but I'm just saying I had to work my butt off to get to this point! One thing that really sucks is the payments! This is our first year with a truck payment, and mower payment and obviously we planned for it but it was soooo nice being debt free.:cry: Honestly, if I would do it all over again.....I wouldn't have gotten involved into mowing so deeply, I would have gotten into just hardscaping.
     
  7. goodfriend

    goodfriend LawnSite Member
    from MA
    Posts: 7

    thanks guys!:)
     

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