More Debt?

Discussion in 'Lawn Mowing' started by Danscapes, Mar 27, 2009.

  1. Danscapes

    Danscapes LawnSite Senior Member
    Posts: 331

    I have a situation. I just got asked to place a bid on my first commercial account, but all I have right now is a 36" WB. As of right now all I do are residentials and this commercial account I know will take a bigger mower to be profitable (and me not look like a dumbazz out there with a 36"). Well there is a guy selling a almost new Wright Stander 52" for $3500, and thats too good of a deal to pass up and i would use it for this account plus knock out my residentials faster. The problem is my business line of credit is almost maxed out with my truck and trailer, so should I acquire another loan or just pass up the chance to grow for now until I pay down my debt? What would you guys do?
     
  2. Nick's Lawn Care

    Nick's Lawn Care LawnSite Senior Member
    Posts: 662

    Where's it for sale in cincy? I'll take it off your hands for you:laugh::laugh:

    It might seem like a deal buy i think you will find some great deals this summer because companies will be going south... I would not want to rake up any more debt, i would use the 36" till you have some cash to spend...

    Just my $.02...

    Nick
     
  3. topsites

    topsites LawnSite Fanatic
    Posts: 21,654

    I don't buy a piece of equipment for just one account, no matter how good a deal.
     
  4. LouisianaLawnboy

    LouisianaLawnboy LawnSite Silver Member
    Posts: 2,199

    Do it the Dave Ramsey way. Cash only.
     
  5. Columbia Care

    Columbia Care LawnSite Member
    Posts: 158

    I will not accept any debt in order to purchase equipment. With the current economic situation we are all facing, you never know when a customer will stop paying or even drop you due to lack of money. If you are counting on that income to pay your debt (and current bills), then you will be in serious financial trouble. I use my 42" WB for larger jobs, if people are laughing at me, that is fine since I owe no money to anyone. As I get cash saved, I will upgrade on "good used equipment" in order to keep my cost down.
     
  6. QualityLawnCare4u

    QualityLawnCare4u LawnSite Gold Member
    Posts: 3,758

    I made the mistake of buying a 60" ztr on a big appartment complex few years ago and lost the account in less than 2 months getting lowballed and did not have a contract at that time:nono: Wound up selling off some of my equipment to pay bills with. Do NOT finance it if you are already maxed out. I have a rule of thumb, no matter how bad I need/want it I will not finance anything ever again!
     
  7. lifetree

    lifetree LawnSite Fanatic
    Posts: 5,370

    This is also my advice to you !!
     
  8. lifetree

    lifetree LawnSite Fanatic
    Posts: 5,370

    I'm sorry you had that experience ... however, you apparently learned a very valuable lesson fron it !!
     
  9. jsw2008

    jsw2008 LawnSite Senior Member
    Posts: 513

    Cash is king. If I can't pay for it outright, I don't buy it. There's always one more good deal that will come along and you'll want to buy something else and get more debt. Just be happy with what you currently have and don't get any more debt. You'll sleep better at night.
     
  10. djagusch

    djagusch LawnSite Platinum Member
    from MN
    Posts: 4,202

    How fast can that account pay for the mower? I personally buy everything with cash but if you can get a return in 2 to 3 months and use it on other properties to be more efficient then I would consider it.
     

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