Is Our Industry Being Redlined By The Banks?

Discussion in 'Lawn Mowing' started by PetalsandPines, May 7, 2003.

  1. Alan Oncken

    Alan Oncken LawnSite Member
    Posts: 42

    Every now and then I use one those "bank checks" from my credit card company and usually receive 0% for 1 year (sometimes longer). The last one I did had a one time $50 fee and had the cash at 0% for 13 months.

    A friend of mine does this all the time. At the end on the 1 year (or promotion) time, he just "rolls over" his balance to another 0% or low interest rate card.

    Be careful that its NOT a cash advance, which usually have very high fees.
     
  2. eslawns

    eslawns LawnSite Senior Member
    Posts: 712


    I did too. What kind of moron would refuse a loan that is already paid back if the person defaults. It would be like me telling a client that I won't let them pay monthly, even though they let me keep a season's billing in advance. Idiots.
     
  3. I'm telling ya morons.

    At the time it was cheaper to barrow my own money than to use my own to buy the equipment.

    I just wish sometimes my line of credit was higher than it is.
     
  4. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Maybe if you asked to "borrow" money.. they would have given it to you. Instead you wanted to barrow... they probably couldn't figure it out.

    Sorry Mike.. could not help myself ;)
     
  5. slowleak

    slowleak LawnSite Member
    from 63055
    Posts: 96

    you should check your own website. read the first paragraph.tell where's the preposition.? sorry,couldn't resist. :)
     
  6. Lawn-Scapes

    Lawn-Scapes LawnSite Silver Member
    Posts: 2,810

    Being a dolt:confused:

    Do you even know what the heck you are talking about.. 'cause I sure don't?
     
  7. LLMSERVICE

    LLMSERVICE LawnSite Member
    Posts: 96

    Banks want to see a good business plan and having one, better yet, an annual one, should generally make it easier to get in the door.

    Not all bankers are scary. Ours (Scotiabank) has been excellent to deal with since day one. You have to create a relationship with them. However, if you've got a serious credit issue or a very high debt equity ratio, you're going to have problems, regardless.

    There are other sources - venture capitalists, angel investors, family, shareholders, gov't programs, leasing, etc. If you really want to make your business grow, and have laid the groundwork in the form of a business plan, and are persistent you'll find a way to make it work.
     
  8. mikesjumpingin

    mikesjumpingin LawnSite Member
    Posts: 101

    The next deposit you make, park your truck in the front, walk in with a fist full of checks and muddy pants and boots, and be sure to cover their beautiful marble tiles with your tracks.

    Donald Trump in his first autobiography (The Art of the Deal) vividly exploits how dumb bankers are and offers some tips on how to manipulate them.

    I read that book over ten years ago, and at that time I took his advice and ended up with a $35,000 credit line to start up a video production company, which, like lawn and landscaping, has equipment of risky re-sale value.

    They wanted my parents to co-sign, I said no, then they gave me the money. I owned no property, either.

    I know a lot has changed in ten years, but if you have a personality clash or problem with bankers (who in the real world doesn't?) you'd enjoy that book and it has good tips on how to get money from them.

    Mike
     
  9. PetalsandPines

    PetalsandPines LawnSite Member
    Posts: 248

    Sounds like I need to get that book. I just don't feel that dealing with banks is a personal thing anymore. You may be friends with all the employees, heck a few are my customers also, but your information still gets sent downtown to a mainframe computer which assesses your credit score. Most of the time businesses have scratches and dents on their credit reports because they are desperate for financing, when lending institutions realize that, they only give you enough to get by, or hit you with ridiculous finance charges such as the 27% interest lease I am paying on my Turf Tiger, By the way thank you Scag & your financing partners for denying me on that one!
     
  10. Barkleymut

    Barkleymut LawnSite Bronze Member
    Posts: 1,117

    Get a home equity line or loan. The interest is a personal write off if your LTV is 100% or less. Then you turn around and lend the $$$ to your biz. I did this at the beginning of the year and it worked out great.
     

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