Debt

Discussion in 'Lawn Mowing' started by dmk395, Feb 8, 2001.

  1. dmk395

    dmk395 LawnSite Bronze Member
    from Ma
    Posts: 1,003

    I was just wondering if anyone has any large bank notes outstanding, for which they have bought equipment with, or just used the start up capital to build the business? If yes, do you find it manageable, or a real hassle?
     
  2. awm

    awm LawnSite Gold Member
    Posts: 3,354

    A REAL HASSLE.Going to

    have to do a premature
    cash on an IRA unless something comes up.
    The wife is not happy with me right now
    ANY BODY GOT A BEDIN THE BARN OR SOMETHING.
    Sorry for the poor form.Sometime it o this
    sometime it do that.
     
  3. eggy

    eggy LawnSite Senior Member
    Posts: 954

    I would say it depends on the size of the buisness. Some in here operate a walk behind and thats it.....Others are full scale in it for the long run..almost all large players in the game I know have outstanding debt, cash flow can be a struggle from time to time. But I guess I look at the guys with a seperate shop real, trucks etc as the players..in the game...everyone has their own voice on debt do what is right for you..if the money you need to borrow now can bring in revunes that exceed the debt go for it.
     
  4. Ssouth

    Ssouth LawnSite Senior Member
    Posts: 437

    Not a hassle at all. I borrowed $11,000 last Feb. for start up money. It will be payed off by March of this year. Couldn't have started my business without the money. From that money I purchased an Exmark LZ HP, Echo; trimmer, blower, edger, hedge trimmer, cell phone, 16' tandem axle trailer, and several small hand tools. My advice is that if you can pay off you intial debt in less than two years you are well on you way to a good profit. After that use your profit to buy more efficient equipment and never borrow again. So far this stratagey has worked for me.
     
  5. SummitFarmer

    SummitFarmer LawnSite Member
    Posts: 76

    Have to agree with Ssouth!!
    I'm looking at "Going Large" if the deal can get done and buy an existing operation. It can be stressful but like south said if you can sacrifice and get that debt paid off quickly, you will reap the rewards. Plus a big load of stress will be Hosta lavista....
     
  6. Runner

    Runner LawnSite Fanatic
    Posts: 13,494

    I have a $150. dollar a month bank payment that I make for my Lazer EPS. I would love to pay that off this year as I did my Gravely some years ago.
     
  7. Pauls Mowing

    Pauls Mowing LawnSite Member
    Posts: 207

    Another vote for Ssouth.

    Paul
     
  8. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    I have debt, probably will for a while. What are you going to do with all the profit? This is a question that puzzles me because if you don't have any expenses then it will go to taxes..................unless?????????????????
     
  9. Twotoros

    Twotoros LawnSite Senior Member
    Posts: 494

    Borrowed 20k last year to buy some accts and equipt from another service scaling back. Opted to pay 3/4 back last year because I hate interest .So it was a short year moneywise for me . Big credit on the taxes though .
    If fact it's the most I've had in expenses for one season.
    I did sell off a few of the accts and equipt.
     
  10. Indiana

    Indiana LawnSite Member
    Posts: 246

    I don't know many guys starting out without some form of debt.

    I have debt and hate it. Mortgage, business loan, truck payment, etc... I am 31 and in business for 9 years. I wish I knew a way to expand business without borrowing. But I'm at a lost.

    Don't want a partner, don't want investors. I like the money (lots of yearly contracts) but don't like the debt.

    Oh well.

    I gots lots of time to pay it off. I hate interest but right now its my only alternative. I'm in the business for the long haul.
     

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