my banker says we have the WORST credit ratings as a profession

Discussion in 'Lawn Mowing' started by GarPA, May 5, 2002.

  1. GarPA

    GarPA LawnSite Silver Member
    from PA
    Posts: 2,585

    had to open some new accounts with my credit union yesterday...have a good relationship with the vp there..gives me what I need when I need it...so after we talk about me doing his property I asked him why? it was always well maintained so why do you want to change? he says the lco wasn't paying his bills and was bouncing checks all over town....now heres the bad part...then he launched into his spiel that people in this business have about the worst credit ratings of ANY small business.....now I know there are alot of 'here today gone tomorrow' guys in this racket...but he says its worse than I imagined...I was kind of embarrassed in a way as I slinked out the door. Often here we talk about improving our image and reputation as professionals...and we ARE professionals....but it seems we still have alot to improve...how we look, act, pay our bills and so on ...kind of a weird post I know...but the more we hear how we are perceived, maybe a few more of us will raise the bar a notch or two
     
  2. Harvestman

    Harvestman LawnSite Member
    Posts: 233

    We are big on image. Clean trucks. Clean uniforms. I don't want people to think "I hope they leave before my company gets here". We also pay our bills on time if not early.I also do this in my personel finances. I think if you are honest you can stand proud, and it will pay off for you in more business. Harvestman
     
  3. leprechaun_50

    leprechaun_50 LawnSite Member
    Posts: 40

    ...I was kind of embarrassed in a way as I slinked out the door.


    If you are giving your customers full value for the money they
    pay you, there is no reason to feel embarassed. You can't help it that there are some scumbags in every business, includeing banking!
     
  4. Brickman

    Brickman LawnSite Bronze Member
    Posts: 1,249

    One thing to keep in mind, credit unions are not business oriented in any way. They cater to the personal side of banking. So this guy may not have been very informed, as for credit ratings I couldn't say. I did get a 5 yr loan for my Walker thru a bank, when I approached my credit union they asked WHY I needed a $10,000 mower. Why not go up to Wal Mart or K Mart, that would be cheaper??????? YES INDEED, WHY NOT. They will give loans for motorcycles, ATVs, boats, but not a business loan to a working man. WHATEVER.
     
  5. dougaustreim

    dougaustreim LawnSite Senior Member
    Posts: 488

    The statement is right. The landscape industry as whole does have a bad reputation. It is a business that is easy to get into and hard to stay in. The seasonality of it is part of it, and the concept that anyone can do it, leads to lots of people trying it and the perception from many customers that all they have to do is get the cheapest price because anyone can do it.

    We are in a University town here, and every year there is one ot two new businesses started by recent graduates or drop outs. It seems that the landscape and lawn field is the only one. None of them become other types of contractors etc.


    Bank of American does not issue their Business Credit Cards to companies in the landscape industry based on business type, no matter you credit rating.

    Doug Austreim
    Austreim Landscaping
     
  6. heygrassman

    heygrassman LawnSite Senior Member
    Posts: 509

    kinda of an invasion of privacy and why would he communicate this to someone else.
     
  7. John Allin

    John Allin LawnSite Bronze Member
    Posts: 1,489

    This is one reason many of us here harp on the newbies to get their pricing where it SHOULD be... so they can pay their bills.

    Too many in this industry have little, or no, business background and then price their services at "what the market will bear"..... and then don't understand when someone like me comes along and says that pricing in this fashion is a fast way to go under.
     
  8. ADMowing

    ADMowing LawnSite Member
    from Florida
    Posts: 175

    When we bought our house, we had to prove our income a lot more than when we were employed by other types of businesses before. We didn't have the hassles with proving our income like we have since we've been in the lawn service industry. But, they are comforted when they see our good credit report!

    Our bank here in Florida caters to us GREATLY! They know us by name and if we ever have a problem -- it is taken care of promptly.

    I think your banker was second rate -- like Leprechaun and heygrassman said here -- it doesn't show him to be very professional by divulging personal information about another lawn service to you! Also, I agree that there are lots of people besides lawn care professionals who don't pay their bills. I think I'd find a different bank! What is he telling others about you??? He should have been the one slinking!!!

    We just got a loan to get an enclosed trailer to house our equipment. We were going to build a garage and decided to get a rolling one instead! No problem with financing.
     
  9. proline32

    proline32 LawnSite Senior Member
    from 98383
    Posts: 278

    Yep, same issue here..... I wanted to get a new John deere SST so I can retire the proline mid walk and sit my butt down for a change instead of standing behind the machine and being pulled around, my bank would rather be held hostage by terrorist holding anthrax than give me a loan regardless of my credit( getting loans was never a problem when I was working for someone else) It's the same with trucks, I used to be able to go to the ford dealer and buy a new truck no problem but now they won't even offer me credit at decent rates any more because I'm self employeed. So I went and bought a used truck and paid cash for it, I'll never buy a new truck again. As for the new john deere, well, I put $1000 down and john deere financed the rest at 5.9% over 4 years no problem. So you can get credit at dealers if you have a good credit rating. But it is an issue, thier are lots of loosers out thier making this industry look bad, the paint contracting industry has had the same problems for years and they are trying to do something about it with professional trade associations and educating the contractors, The lawn care industry really needs the same, Unfortunately there are a lot guys out there and they are trying to make a living just like us, it's just that they are ruining our market to do it.
     
  10. PetalsandPines

    PetalsandPines LawnSite Member
    Posts: 248

    Nothing gets me pissed off more than applying for equipment purchase credit...From the day I started my business nearly 10 years ago to today I have been fighting these corporate A$$Holes for an opportunity to achieve my dreams.These bank don't want to know nothing about your business, all you are is a credit score and that is it....They don't want to know that you are turning away hundreds of potential clients a year, cause you can't take chances without a substantial commercial line of credit. They only give you a little here an there...just enough to keep you alive but not prosperous. I am so freakin frustrated, I feel that I'm going to burn out trying to take it all on myself and pay cash for equipment. Don't believe that Consumer Credit Counseling **** you see on TV either......Rebuild your credit my A$$! I applied for credit through Sheffield (Scag) mind you I had already built a solid relationship with them and paid a loan off as agreed. And the dealer hands the phone over to me and the woman from sheffield has the audacity to tell me...I see you were on a Consumer Credit Counseling program, what's to say your not going to go on it again? sorry we can't give you the loan. While my roommate who has more student loans than all my equipment's value get's lines of credit for $20,50 or more thousand! Where's the justice here? Yet these banks continue to lend to these corporate giants that file for bankruptcy but the working man pays the price. It just isn't fair...My bank slaps it's name on our sports arena for how many millions and won't give me a $6,000 loan for a lawn mower...HELLLOOOO????
     

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