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Discussion in 'Business Operations' started by Bunton Guy, Jan 6, 2003.

  1. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,902

    For being young (19) I have had a hard time getting all the equipment I need. Over the last few months I had tried getting more credit cards and all the answers for declining was that my credit was maxed out. Being 19 I have 2 credit cards and two loans out under my name one for 7K and the other for 6K Im in need rite now of a new Z rider and either a mitsubishi cabover with landscape bed or 14 ft. dump. Someone told me with my credit problems that leasing is the way to go since what you lease isnt yours till the end of the lease if you choose to buy out the vehicle or equipment. Is leasing the way to go if you have run near the end of your credit limits?is it easier to get a lease when you cant finance anymore? On one of the loans I have a co-signer being my mom. I have a feeling I have ran her near her credit limits being that I have out 2 dirt bikes, 1 enclosed trailer a F-350 truck and a few other things. I have been lucky that I have her to help me with the financial things but now its time to kinda of step back from mowing and let the employes take over. And over my dead body they are using my truck so I need another vehicle and a Z rider....leasing was a thought maybe you guys can fill me in on which direction to go. I have also tried getting a 40K line of credit and got turned down do to NO credit for the company which I saw that comming they wouldnt let me apply for a line of credit for personal use it had to be through the company.
  2. KLR

    KLR LawnSite Member
    from Zone 6
    Messages: 171

    Bunton, I know nothing about you other than what i just read. I dont have an answer for your question...but i'd like to give my 2 cents.

    we all need credit at some point. and its a tricky thing, banks dont want to give you credit without a credit history, and you cant get a history if they wont extend you credit.

    I have a son who is 19, i try to teach him not to get over extended with credit.

    personally (again, talking about my 19 year old son) i advise him to purchase what he absolutley needs, then make payments, higher than minimum payment whenever possible, and dont buy anything else till this is payed. banks will be very negative towards a young person with lots of credit and maxed out cards.

    anyway, with all that being said, have you tried American Express? check out the link, they seem to be helpful, especially to younger business people. good chance they will work with you to open a line of credit?


    good luck
  3. MOOSE

    MOOSE LawnSite Senior Member
    Messages: 393

    Pay off ur credit cards and get rid of them. You established credit there but leaving the account open will hurt u too. Your other loans I would pay more then what is due every month and get them paid off.

    I would use what u got know and make due with it or buy another bigger W/B with sulky and save up for a used ZTR or what until ur better off financial (credit & savings).

    Just my 2 cents worth.

    I bought used W/b mowers and rest was new. U can afford smaller equipment but not the big stuff.
  4. bubble boy

    bubble boy LawnSite Bronze Member
    Messages: 1,020

    what are your revenues? you don't have to answer, but then look at what % of that the debt represents. $13 000 at 16 % a year? is the f-350 financed?

    pay down some of that debt before going off and getting equip and employees.

    why do people insist on growing too fast????????
  5. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,902

    I wouldnt consider it growing to fast. I gained 5 commercial accounts last month and am expecting another 2 this month...thats about it hopefully steady 2-5 accounts per month add on. This is the bigger jump I have been maintaining my accounts with just w.b's now its time to make my perduction go up and get a Z rider....I dont find this a bad idea maybe I can handle even more accounts with the Z. Now the new truck will be more for the reason of I refuse to let employees drive my personal truck around and my personal truck is getting beat up from every day abuse on the jobs. To keep the value of my personal truck I must get another truck for just the business.
  6. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Messages: 1,847

    are you really that stuborn about "your" truck? i would just let what happens, happen. I would never pay 5-600/mo just to keep "my" truck in great shape. Try to find an older truck for the busuiness if you absolutely cant let them have your truck. Im with you on the Z, but not on the truck.
  7. boohoo

    boohoo Banned
    from USA
    Messages: 77

    Easy ......sell your truck!. Choice of what is more important .....
    ego or cash flow.
  8. bubble boy

    bubble boy LawnSite Bronze Member
    Messages: 1,020

    5 comercial accts means squat if their small...maybe they're big i don't know.

    fact is even if a few larger props landed in my lap i would make sure i could afford to take them on.

    and don't try and say i don't understand what you're trying to do. i know all about fast growth...went from 0 to 5 employees in two years...and i have the debt to prove it. it's tough...you really have to watch cash flow in times of high growth.

    an extra, say, $75 000 per yr. revenue means squat if your cash runs out in may...or debt servicing erodes your profits...

    and my guys are hard on our trucks, you just deal with it. get a motorbike, or a cavalier (cheap now). use that as your personal transportation.
  9. rodfather

    rodfather LawnSite Fanatic
    Messages: 9,501

    To me, that sounds like a lot of debt for someone who is still in their teens. I agree with Moose and Bubble Boy...pay down that debt as fast as you can.

    Although there are benefits to leasing, it is still going to be another "nut" each month.
  10. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Messages: 1,902

    I had really seriously thought of trading my truck into carmax but I think that wouldnt help much I need to put money into it before I can sell it the tail gate dosent work,front and rear bumpers need to be replaced due to dents from a tree storm and needs new tires. Other than that its go to go its a 2001 F-350 powerstroke and I had planned on lifting it up and making it look nicer but its not the rite time to do that.

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