How to get the money to get started.

Discussion in 'Lawn Mowing' started by Grassboy, Mar 14, 2000.

  1. Grassboy

    Grassboy LawnSite Member
    Posts: 104

    I am working on finding the money to pay off all this equiptment I am buying. I don't have a 6 months no payment deal. So I need to come up w/ $6000 somehow. I am not stupid, its just that I don't want to rely on my father for a loan. Also, what is a general loan interest rate for this kind of loan?<br>Thanks,<br>Grassboy
     
  2. Charles

    Charles Moderator Staff Member
    Posts: 7,866

    I don't understand your post Grassboy. Did you buy the equipment without a way to pay for it? Are you still thinking about buying the equipment and worried about financing? If it is the latter and you go to a bank. They will require you to either show you have an income to show that you can pay back the loan. Or you can get your dad to cosign with you to get the loan. Meaning he will gaurantee that you or he will pay back the loan. The rate of interest will depend on if the equipment is new or not. If it is new you will get a better rate. Now rates have gone up. Some dealers have made volume deals with the banks. Rates will probably range from 7( now doubtful) to 12 percent. <br>6000$ financed for 3 years at 10% interest will give u payments of 193.60$ appx.4 yrs payment 152.18$<br>
     
  3. CA Enterprises

    CA Enterprises LawnSite Member
    Posts: 82

    Grassboy,<p>Check with your local Chamber of Commerce. They can send you in the right direction to get State and Federal help to start your new business. Some of these loans are lower interest and a little more flexible than the bank. Most banks are either not going to go the money for the fact you can't show that you have experience in this field making a profit and if they do they'll eat you alive with 12%+.<p>Good Luck,<p>Adam:)
     
  4. Toroguy

    Toroguy LawnSite Bronze Member
    Posts: 1,075

    Grassboy, Pay cash for a 21&quot; mower, cheap blower and trimmer. Push that mower, keep pushing, then take the $6000 you make over the season and pay cash for your better equipment next season. Patience grasshopper, I mean grassboy. You still have forty years to build your company into what you envision.
     
  5. Youngster

    Youngster LawnSite Member
    from Texas
    Posts: 46

    I agree with toroguy. I'm 17 right now. I only have a few lawns, but am growing constantly. I have about $600 invested in my equipment right now. I hope to use that until I grow bigger and can afford more. i wouldnt jump into this full force unless you want to continue doing this for a long time. Just my opinion.
     
  6. Dingo

    Dingo LawnSite Member
    from TN
    Posts: 133

    Im 17 and I jumped in head first ive got over $8k invested and im doing great. Im getting ready to buy a new truck. That means im spending even more money!!! It really doesnt worry me cause you can always sell it, but im not going to. I would say if you are going to get in the biz jump in the deep end dont play in the kiddy pool cause you wont get fare fast. just my thoughts
     
  7. scottlawns

    scottlawns Guest
    Posts: 0

    just my opinion but to jump into big dept at 16 would not be fun,always worring about the payments and hope to hell you dont have a drought,take it easy,and buy slow,i quit my job building car motors after 10 years and went to work with a buddy in the lawncare...all summer why i worked i bought stuff,and by fall i had a 52in greatdane...a aeirater...a lawnboy...a trailer..2 trimmers and a back pack blower and a 96 F350(i did add some of my own money)but winter came and we only plowed 7 times...im so glad my stuff was paid for so i could enjoy the winter without worrying about the payments...so all i can say is take your time and buy slow,i wish you luck.<p>scott
     
  8. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    Johnny Cash sang a song entitled &quot;ONE PIECE AT THE TIME&quot; I think he was referring to &quot;stealing&quot; parts though. I wouldn't advise that, just do it one piece at a time.<p>Two years ago I couldn't envision needing a 20' trailer, but I got one now. I also didn't think I would fill it up, but it is. I now haul my 21&quot; in the back of my truck, no room for it in that short trailer! <p>Only buy what you can pay for, I wish all mine was paid for but it's not. I made it through the winter just fine and business is great, I bought last year and won't be buying this year at all, may have to get a trimmer or something small, but no purchases larger than that.<p>A journey of a 1000 miles begins with the first step! Not sure who said that, I think it might have been that confused guy.<p>Homer
     
  9. Charles

    Charles Moderator Staff Member
    Posts: 7,866

    Thye contrast from this post is interesting. On one hand you have your one foot in and one foot out people. Then you have your jump in all the way and dont look back people. I have read about the rich and how the got rich. Those are the people who are fearless and are not afraid to even risk bankruptsy. Look at donald trump. Rich man and then bankrupt then rich again. Many of the wealthy failed many time before they suceeded. But they were not afraid to at least try. All the grassboy ask is how to get the money. Grassboy sounds like a go getter. Many are telling him not to aim high but to keep one foot. If you go through life afraid to fail you will always be average.
     
  10. slagerlawncare

    slagerlawncare LawnSite Member
    Posts: 97

    well said charles...<br>grassboy..tell your dad you know of a way for early retirement....ask him for the loan.
     

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