Loans( should I?)

Discussion in 'Business Operations' started by MIKEJ, Mar 8, 2003.

  1. MIKEJ

    MIKEJ LawnSite Member
    Messages: 27

    Need some advice here. Entering my 4th season part time and was considering getting a loan to make some equipment purchases. Right now I have a 92 Chevy 1 ton dump, 48" Lesco w/b,21 inch Deere,various blowers, trimmers,edgers,etc. and tow a 6x12 trailer.I would like to add a 36w/b,a 16hp leaf loader, and a 7x14 enclosed trailer. I have made all of my purchases thus far by putting as much back into the business as I can. My plan is to go full time next season and I wanted to purchase the "big" items before then . Should I get a loan or stick with paying as I go? I'm up in the air here so any advice would help. Thanks guys you have been a great help in the past. :dizzy:
  2. stang358

    stang358 LawnSite Member
    Messages: 58

    As far as loans are concerned, I cannot comment on your personal situation. However, I would like to add a couple of thoughts out to you. As far as the equipment that you are considering, I would like to make a couple of suggestions and tell you my reasoning for it. I would not bother with the 36" wb since you may still have some gates that you can't get into with it and since you already have a 48" if you went with a 32", you would be able to use the same size blades, saving you from having to have several sizes. Also on the trailer that you are considering, I would look into a 16' trailer since you are wanting to do leaf work. By going with the 2' longer trailer you can get sheets of plywood to fit easier for your sides and you can hold more leaves. Also price probably won't be any different. I am not sure about your location, but here, the price is the same. As far as a leaf loader, check with Lesco. I have no personal experience with them, but others have said that it seems to be just as good as others out there and is about $600 cheaper. If you do decide to get a loan, go to Lesco and get a 32" mower and their leaf vac and have 1 payment. Just my .02 if it is even worth that.
  3. LP

    LP LawnSite Member
    Messages: 97

    It would be wise to pay for it by putting profit back into bus. as you have been doing, but when you pick up new accounts that will pay for needed equipt. and you have a contract, it's a no brainer get what you need to do the job but shop, lots of dealers offer 6 months same as cash with no down payments and as long as you pay it off before the 6 months is up it's a beautiful deal.

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