In debtedness to your business

Discussion in 'Business Operations' started by meets1, Dec 15, 2012.

  1. meets1

    meets1 LawnSite Gold Member
    Messages: 3,857

    What, if you share, are you guys in debt with business. I realize some may only have a mower while others have a 12K shop full of equipment. Me, everything total $100K. That includes some "left over nursery stock", one truck with payments, a 6000 sq ft shop, land etc. Mostly mortage mainly on shop and land at this point.
  2. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Messages: 3,336

    Financed all of a new Walker this fall so it's still over 10k, and I owe around $3500 on a trailer and an ATV. Seems like as soon as I pay off something I go out and buy something else. I figure I can take risks on financing stuff while I'm young. Hopefully when I'm 50 I don't have to be visiting with a loan officer to buy a mower.
  3. meets1

    meets1 LawnSite Gold Member
    Messages: 3,857

    Yes I here ya. Pay off then here comes another. I like new equipment but buying assets is better, be it land, shop, add on to your operation. There is always a need for banking but only one response out of 140 views.
  4. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Messages: 1,857

    Your question doesnt make much sense. Are you asking for the total outstanding debt each business owes? Thats a pretty short sighted look at a balance sheet.
    What about the company that leases EVERYTHING? They have no debt or assets but their liabilities are very real.
    What about the company with no debt, essentially the owner is using their retained earnings as their bank? The business owes the owner that back, right?
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  5. Monroe74

    Monroe74 LawnSite Senior Member
    Messages: 322

    Treading water here making things work
  6. Will P.C.

    Will P.C. LawnSite Senior Member
    Messages: 966

    Nothing wrong with having a lot of debt if you know what you doing. Unless Mitt Romney is your Dad, this is the best way to truly grow.
  7. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Messages: 2,131

    We have a good amount but I won't put the total number out there. 3 truck notes, skid steer, mini ex. Just brought in about 50k in irrigation and lighting stock to get next season started. And have a truck load of next years fert coming in 2 weeks. As said above, their are two many variables from one company to another. The discount I got on the inventory is worth it to bring it in early. The debt on the equipment allows my to build other assets, such as prepaid rent and insuance for 2013 that I just cut checks for last week.

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