Loans?

Discussion in 'Starting a Lawn Care Business' started by GravelyWalker, Oct 10, 2012.

  1. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,287

    If you go finance all new equiptment and dont make the payments, the bank will take it back and sell it for 1/3 of what you paid for it adn sue you for the rest of the balance on the loan plus a whole lot of fees and they will WIN THE LAWSUITE. No one but the signer on a loan is taking a risk, you will pay the money back one way or another. If you think you can screw over banks I can assure you that they have the "courts" on their side and have far better lawyers than you can get.

    On the other hand if you pay cash on equiptment thats a good deal if you have too sell it you can make money!
     
  2. CL&T

    CL&T LawnSite Senior Member
    Posts: 493

    What an idiot!
     
  3. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,287

    When you learn a "wewittlebit" about how financing works and the Fact if you sign a "NOTE" for 10000$ you are personally liable to repay that note in its full amount plus interest, look in the mirror and you will see the broke person that you are.

    Yall fellers should limit the name calling to the political threds.

    Thanks clt!
     
  4. CL&T

    CL&T LawnSite Senior Member
    Posts: 493

    Example: a person bought a car or a truck for instance and couldn't keep up the payments. They sell it to pay off the loan or the person who buys it assumes the loan. Ok, depending on what the vehicle is worth at the time maybe they had to kick in a few bucks but it wasn't the end of the world and the bank didn't send the storm troopers out to get them and their children. Hopefully they learned from the experience.

    You sir are the one who needs to learn about the real world and lose the ignorance. If being debt free makes you feel warm and fuzzy that's your personal choice. But making the blanket statement as fact that debt will ruin your business just illustrates your ignorance.
     
  5. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,287

    At least your talking somewhat like a businessman, may I ask how long have you been in business???

    OK so a person buys a new 50k truck that that couldnt afford and cant make payments on the 50K. The truck almost immediately leaving the lot lost 10k in value, so in the best of cirmistances the "borrower" has to take a "personal loan" if he can get for the 10k difference. Then lets say everything goes great and after 5 to 7 years and the ztr runs into the side of it a few times, and the interior is wornout from being filthy after long days of lawncarwork, the truck is worth around 8k, not the worlds best investment even if everything goes good.

    My point about is now and has alaways been that in increases the "Risk" of a failed business, not that it automacially means failure, althought in this industry its very common. Not to mention that borrowing money on assets that go down in value is a recipe for being poor.

    We should keep a open disscussion, Im curious why every thinks they need to borrow money for a lawncare businees?
     
  6. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,287

    Mabey ..........PROCUT.....will be kind enought to link us to the "How not to succedd in the lawncare business", its likley to be the best thred in the "History" of LS. It will tak a while to read through it.
     
  7. i think it great that some of you are debt free with houses and equipment. but i guess each his own.
     
  8. Pietro

    Pietro LawnSite Senior Member
    Posts: 858



    actually, if you defalt, they can go after you...and repo the machines. But. If you sold the machines and filed for bankruptcy...there isnt much the bank can do other than deny you loans in the future. Once youre bankrupt, youre bankrupt. They cant sue you for something you dont have. However, I dont advise anyone to do this.
     
  9. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 16,287

    The Bush presidency changed the bankruptcy laws, so even if you file bankrupt, you will in most cases still pay back the loan, although it will take a long time.

    A small business failure with a lot of debt can follow you for 20 to 30 years.
     
  10. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    You buy the truck and depreciate over the same time .The truck technicality is now worthless to your business. And how much money did that truck make you in that time. And up here salt will eat your truck ,hard to keep a truck working for a long time. I just traded in a 2002 with 67k on it ,salt ate it.
     

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