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Discussion in 'Starting a Lawn Care Business' started by johnc8407, Aug 21, 2009.
Anyone know what credit score is required to finance a good zero turn mower?
Pay cash, then the score won't matter.
Yep, agreed. Try not to finance a depreciable asset like a mower.
I would just call my nearest dealership and ask.
Close to 800?
If you have a 680 you have a shot. You better have god income, and low debt. We call this debt to Income try to keep it at 30% debt of your income. You just can't go there and say you make $5,000 a month. You have to prove it by providing 2 years tax returns or pay stubs. If you are a business owner or sole proprietor it is going to beharder, because you are probably start up and don't have those things. To stand a good chance of getting approved you need to be around 730. Ask me if you have any questions, as I am a banker in commercial loans by day, landscaper night and weekends. If you got cash, that is by far the best and you will get the best deal. If not there are a few promotions out there from the Mafg. for 6 months or 12 months same as cash.
Ask if you got anymore questions!!!
i'm new and starting also but i can tell you from weeks of reading for an hour or 2 a day alot of the new business's that go out and finance their equip. have problems and end up selling it for half the price. i'm starting with just a 26" so if it doesn't work who cares i'm not losing much money. just my opinion
Oh, almost any score can get in financed, it's the percentage rate that will reflect your score. BTW, I would repeat what has been said -- DON'T DO IT.
If you can get financing, go for it. Most of what you will find out there in left overs are actually a good deal. Keep in mind, they will not give you a loan if they cannot get out of the machine if they need to take it back. Banks aren't in the business of losing their money.
Try to avoid using any credit for a start up to see if you will make it or not. When I started I was able to get a older Exmark 36" mower with less than 100 hours for $1500, and a 61" Ferris rider with less than 400 hours for $3500. I paid less for 2 machines then you can get a nice left over machine for.
New is nice, but surely cuts into your profits. Afterall, its not a lawn equipment show....its a business.
Responsible financing can be a great way to grow a business. Make sure your debt to asset ratio is low, and manage your cash flow strategically, and you'll be alright.