For mowers do you pay cash or finance them.

Discussion in 'Starting a Lawn Care Business' started by DillonsLawnCare, Aug 22, 2007.


What type of payment method do you use?

Poll closed Nov 10, 2007.
  1. Pay Cash!

    16 vote(s)
  2. Finance!

    6 vote(s)
  1. DillonsLawnCare

    DillonsLawnCare LawnSite Bronze Member
    Posts: 1,100

    when you guys get mowers do you pay cash or do you get loans and finance them??? thanks just curious.:usflag:
  2. tjsquickcuts

    tjsquickcuts LawnSite Senior Member
    from Atlanta
    Posts: 943

    I have been really good about staying away from Financing anything.....With how crazy this business can be like this year, financing could be a killer. I am sure a lot of guys who financed mowers this spring or pissed because of this drought. I say save up, and pay cash. Its real easy to stack 10k over a 3 to 6 month period depending on how many accounts you have. You have to set a goal, and stick to it no matter what. Before I bought my turf tiger, I stopped bowling, drinking beer, and anyother thing I could stop doing to help me save money. Felt real good holding 10k in cash in my hands, but felt even better loading the TT on the trailer. I spend no more then 700 bucks per month now on misc. things that are needed. If I dont spend the money, I just roll it over to the next month. GOALS are the key....
  3. txgrassguy

    txgrassguy LawnSite Gold Member
    Posts: 3,083

    Depends upon your credit rating, how you have the business structured, incumbent debt load, account receivables and deals available - among other things.
    My business, I finance machines all of the time, roll them over every two years or 1000 hours, which ever occurs first and apply the residual value towards the purchase amount.
    I realize I am not the "typical" operation here as my fleet consists of ten ztr's, either sit downs or stand ons plus three walk behinds and seven 21" s.p. mowers.
    I ran an actuarial exercise where I was able, for my business model, to show that rotating the fleet according to the outline I described has actually saved me money as down time, repairs, and depreciation more than make up the difference in financing.

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