Loans?

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

  1. Southern Heritage

    Southern Heritage LawnSite Member
    Posts: 169

    Bravo that's freakin awsome
     
  2. 32vld

    32vld LawnSite Gold Member
    Posts: 3,984

    Joe is out of business not because he waited to buy a mower. Joe's out of business because he did not take that job when offered and use what equipment he had. If he had to work longer days, so be it.

    Now Joe could of went out and bought that new 60 mower as you strongly advised him to and be on the account a month and through no fault of his own lose that account. He's made 1 payment on a 48 month loan with 47 more payments to go and no way to make them. Bank goes to court, sheriff auctions off Joe's assets.

    Joe is now out of business, out of assets, and out on his ass following your business model.
     
  3. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Posts: 3,331

    Wrong. He already brings in 3k a month from his other accounts. He can make the $250 payment out of that. Sure, he might get hungry, but that will provide an incentive to go out and get more lawns. Pass out some door hangers, put an add in the paper, etc.
     
  4. herler

    herler LawnSite Fanatic
    Posts: 5,145

    It is difficult, I struggle with what you speak of on an almost daily basis, like you say, always watching these folks with all their brand new things...
    My truck has dents in it, the paint is faded and scratched, rust so bad we have to consider welding steel over the holes, and it's only 17 years old so you get the picture.

    But you know what, I don't have a monthly payment on anything and I've been in this business for north of 10 years now.
    Then I have seen first hand with these people and their shiny stuff, they never have any money and they're always borrowing from one end to pay off the other, how they manage to get one more loan is a bit far off for me but what I do know is I don't think I want to live that way, either.

    Then I remember...
    Debt always looks pretty from the outside.
    Now I know what they mean when they say "she sure looks pretty"

    And if your business were to go belly up, not that it would but in the unlikely event that it did, at least it's still ALL yours.

    We has a winner!

    Same with those Lco's, 30 shiny trucks today, 27 repossesed by the end of the month.
     
    Last edited: Oct 11, 2012
  5. jsslawncare

    jsslawncare LawnSite Bronze Member
    Posts: 1,674

    I couldn't agree more. I just bought a new Z. 0 down and no payments until Apr 2013, How could you not afford to buy it.
    BUT, most don't have the customer base, or a plan. They want to know what everyone else would do that don't know anything about their area, customer base or anything else about them.
    You have to be smart with money and you have to admit must of us are not.
    And if that was a shot at me not being "legit"- I 1099 everyone that works with me, do you? (well except my son, but he's 15)
     
  6. oh how i love to read all these doom and gloom stories from the experts on finance.
     
  7. phillie

    phillie LawnSite Senior Member
    Posts: 861

    No doubt! I have been paying cash for the 3 yrs I have been in business. This winter I need to add another truck with plow and vbox spreader, dump trailer, 2 60'' mowers, a 36", a 21", blowers, trimmers, etc. I have landed a bunch of commercial accounts which will pay off this winter and next year but not until then. There is no way I could pay cash for all of this equipment and still pay bills and keep up and running.
     
  8. nepatsfan

    nepatsfan LawnSite Gold Member
    Posts: 3,142

    you 1099 the guys that work for you?
     
  9. Greg78

    Greg78 LawnSite Silver Member
    Posts: 2,010

    And that is being "legit"...... I bet his guys enjoy when they go in for tax time and find out they are responsible for all the witholdings....
     
  10. grandview (2006)

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

    Just bought a new 2012 F250 the other day. Company name on the credit app and did not even ask about company finances. Looks nice in the yard!
     

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