# capital



## bcollins (Apr 21, 2013)

Just wondering if any of you explored a small business loan for start up and ongoing cash flow needs. I've been doing this for about two years and even though I have my bad days I truly love this type of work. I have been blessed that have been paying as I go and so far its worked but with my salary and my son plus one more guy with taxes withheld it makes it really hard to make ends meet sometimes. Where we live in a rural area not that many contractors around here and I'd like to expand my area but that would mean another truck and all the equipment needed. So those of you that's been in this for years please give some more of your knowledge to some of us that are trying to keep the ship afloat. I've worked with 3 different companies in the past and currently with one as of now but have signed up with 2 others. This is not the only thing we do we also do concrete landscape etc please advice thanks:thumbsup:


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## Cleanupman (Nov 23, 2012)

When applying for the type of laon you're inquiring about any laon committee will want to see three years of cash flows etc...
We do consultations on this subject matter.


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## Splinterpicker (Apr 18, 2012)

bcollins said:


> Just wondering if any of you explored a small business loan for start up and ongoing cash flow needs. I've been doing this for about two years and even though I have my bad days I truly love this type of work. I have been blessed that have been paying as I go and so far its worked but with my salary and my son plus one more guy with taxes withheld it makes it really hard to make ends meet sometimes. Where we live in a rural area not that many contractors around here and I'd like to expand my area but that would mean another truck and all the equipment needed. So those of you that's been in this for years please give some more of your knowledge to some of us that are trying to keep the ship afloat. I've worked with 3 different companies in the past and currently with one as of now but have signed up with 2 others. This is not the only thing we do we also do concrete landscape etc please advice thanks:thumbsup:


CASH BASIS That is the way I went and DONT regret it one bit !! When times (winter) hit I did not have to worry about getting work PLUS you appreciate the equipment that much more. The trends with nationals , and I dont see this stopping , is to get contracts on lower prices. 


Look at your local municipalities for used vehicles, I picked up a 92 Pickup with 33K for miles 3/4 ton 4X4 extended cab ( 14 years ago for 5500. And they gave me t he service records and let me know any defects!! NONE werwe reported or found. I have driven it to 195,ooo miles and it is going strong still ! One of the better CASH investments I made


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## tak (Dec 28, 2012)

I tend to buy everything in cash as I just bought a new Hustler XONE That way and my 2004 F150. Only thing I got a loan for was my wife's truck and our house. 
Sometimes it's hard with using a cash basis but u don't have a business loan to pay every month along with everything else. I pay my people no problem in the spring and summer but winter a little tough so I cut back their hours and they understand that because I take care of them. On big jobs I pay them more than their normal pay and pay for their lunch as well.


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## STARBABY (Apr 12, 2012)

I agree with Splinterpicker and TAK go cash only! You will grow slower but it`s yours! Look for deals,if your handy find stuff that needs work! I pick up a 1995 1/2 dodge ram two years ago for $350 ! Guy had park it and bought another truck because the water pump was leaking and it needed ball joints!This was a no brainier for me before I got into this I was a mechanic!this truck is on the almost everyday pulling one of my JD 757`s,have put over a 150,000 miles on it!When it does die I have gotten use out of it! Stay away from Loans!


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## Gypsos (Apr 30, 2012)

The only thing I have financed besides my home is an equipment lease for a new ZTR. I did it for two reasons. 

One, I needed a second machine bad and the used ones on Craigslist around here are either junk needing 2 or 3 thousand in repairs of they are in great shape and they want 5 or 6 thousand for them. Either way to get a machine in good shape was going to cost me about 5 or 6 thousand dollars. 

Two, I have been trying to build business credit for years with zero success. This lease was based 100% on my business credit score.

I got a new 52" cut mower with a three year commercial warranty for $6,200 and I am building my business credit. I hate the payments but I see it as an investment in the future of the company with both the equipment and the credit.


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## hammerhead (Apr 26, 2012)

Gypsos said:


> The only thing I have financed besides my home is an equipment lease for a new ZTR. I did it for two reasons.
> 
> One, I needed a second machine bad and the used ones on Craigslist around here are either junk needing 2 or 3 thousand in repairs of they are in great shape and they want 5 or 6 thousand for them. Either way to get a machine in good shape was going to cost me about 5 or 6 thousand dollars.
> 
> ...


Same here. Only time I ever financed anything for business was a new mower this spring. Mostly for the same reasons as above. Hard to pass up 0% interest and no payments till Sept.


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## GTX63 (Apr 12, 2012)

Cash is king.


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## MNanny (May 23, 2013)

hammerhead said:


> Same here. Only time I ever financed anything for business was a new mower this spring. Mostly for the same reasons as above. Hard to pass up 0% interest and no payments till Sept.


I did the exact same thing. Only loan I have. Although I do use the old credit card freely on really big jobs like gutting a flooded house. I still cover labor but 15 grand worth of drywall, flooring and cabinets is a big chunk in a month. Luckily insurance work pays well enough one months interest is doable.


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## Craigslist Hack (Jun 14, 2012)

Borrowing money to operate in preservation is like taking a marker at a casino. The ONLY difference is at a Casino you might actually win. 

Plan your work and work your plan. Do not over obligate yourself. 

We have Zero debt as a company and personally no mortgage no credit cards no car payments. I once had a 3500.00 a month mortgage and 3 car payments. It was a golden cage!


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## Cleanupman (Nov 23, 2012)

In line with what everyone is saying about cash...
This makes the item YOUR asset not whomever you got the loan from.
If you use a loan system for purchases usually the items are the collateral making the item someone else's asset


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## garylaps (Sep 28, 2012)

Here is the real deal, in this industry you can NEVER count on work even three days out...don't have "ALL your eggs" because things change quick. You never want to be left out in the cold when you have a loan on equipment that is sitting in the garage because your work supply lost their contract....BE CAREFULL with loans in this industry


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## STARBABY (Apr 12, 2012)

garylaps said:


> Here is the real deal, in this industry you can NEVER count on work even three days out...don't have "ALL your eggs" because things change quick. You never want to be left out in the cold when you have a loan on equipment that is sitting in the garage because your work supply lost their contract....BE CAREFULL with loans in this industry


so true!


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