Any opinions on the best way to finance a new mower?

Discussion in 'Lawn Mowing' started by Jon99, Jun 27, 2002.

  1. Jon99

    Jon99 LawnSite Senior Member
    Messages: 375

    I mentioned this before, but would like to go a little further in detail..

    I am starting up a business in the spring and I won't have the cash to get things rolling without a little financing.. What I plan on buying is one new ZTR mower as my workhorse, try to find a slighly used 36" WB, trailer, trimmer, blower and a few of the other main stays... Should I walk into my bank and ask for a business loan with a line of credit??? Or just go in and ask for a loan to buy a mower and pay for everything else out of pocket???? Thanks
  2. 65hoss

    65hoss LawnSite Fanatic
    Messages: 6,360

    You would probably not be able to get a business loan. Get the loan to buy the mower and then get everything else yourself is the best bet.

    You have plenty of time, why not save it up? Get a part time job, use the mower you have and get a few yards to cut on the side. Most of us started that way. Just a thought.
  3. Jon99

    Jon99 LawnSite Senior Member
    Messages: 375

    Here is the deal.... First off, I need a big mower to cut my parents farm since thats part of the deal of my using their shop and buildings to PM my mowers and store everything... I don't think I want to use my 21" Deere to mow the 3 acres... :)

    I would love to save the $10K I estimate to start the business, but not sure I will be able to accomplish this... Right now my wife makes decent money as a school teacher and I am getting unemployment plus work a few days a week mowing for a guy... With plans of starting the business in the spring, over the winter I plan on either sub teaching or working for an accounting temp service to give me some cash, yet not eliminating my flexibility...

    My problem is that we just threw all of our cash into buying our house(we only put down 15%, home equity loan is not an option) and I have always maxed out my 401K, so at the moment I am very cash poor, with only about $3K in our savings which I don't want to touch since thats our e-fund...

    Its just wierd, our net worth is about $200K but its all tied up in assets I can't touch...
  4. 65hoss

    65hoss LawnSite Fanatic
    Messages: 6,360

    Oh yea, I remember you posting something about this. What about a loan from you parents since it will their farm as your biggest customer? If not, bank loan and try to get the cash to handle everything else.
  5. Cut 2 Please

    Cut 2 Please LawnSite Member
    Messages: 221

    Several financial corps. have deals they with the different brands of mowers. I financed my Ferris through Sheffield. They had a special lease program at 6.9% for 3 years. Not a bad deal. All of the manufactures have the financing options listed on their web sites. I suggest you give them a look. Many times a local banker might be scared of financing a mower and give a higher rate. My $.02.
  6. WashMoBrink

    WashMoBrink LawnSite Member
    Messages: 19

    In business some debt is good but be careful as a start up. I started with a used Great Dane ZTR that I could pay cash for, and waited for the income stream to pay for the new stuff. My humble opinion.
  7. bruces

    bruces LawnSite Senior Member
    Messages: 648

    Depending on what you are buying, the manufacturers have some good financing programs.

    For examply, right now I believe Toro has 0 down , 0 pmt, 0 interest for one year.

    Other companies probably have similar programs. And these programs change from time to time.

    This could be an option if your credit is ok.

    A straight business loan for a start up might be tough to get.

    Good luck.
  8. Jon99

    Jon99 LawnSite Senior Member
    Messages: 375

    Well what I have been thinking about doing is tossing it onto my 9.9% credit card or even better yet, finding a 0% Intro offer for several months... For some reason though, the stigma of adding credit card debt scares me...

    And I agree Washmobrink, its not my first choice to take on debt, but because my assets are not liquid my choices are limited.. Plus with my wife having a stable job that covers almost all of our living expenses, I can get by with minimal initial cash flow..
  9. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Messages: 1,847

    Your coment about credit cards sparked my brain into remembering about some guys buying things on their 0% credit cards, and just before the cards went to higher rates, they got new 0% cards and just switched their balances. Im pretty sure you can do this and just keep switching the balance until you no longer have a balance. If this works, you then got a loan with no interest. Hope this works:D , but it sounds too good to be true.:mad:
  10. Jon99

    Jon99 LawnSite Senior Member
    Messages: 375

    Well hopefully if they give me 12 mos of 0% I could have the balance to the point that the interest wouldn't hurt me.... If I charge $5K, pay $3K down in the 12 mos, leaves me with a balance of $2K... Worse case scenario I pay it off in year 2 and walk away with a financed mower that I spent less than $200 in interest on...

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