(Here’s the plan to follow to stop over-paying interest charges…forever!)
Dear Lawn and Landscape Business Owner,
The basics of business should never be ignored. Growing your company requires capital. Unless you’ve been eatin’ from a silver spoon of inheritance or you won that massive lottery last weekend, chances are you’ll need to borrow money to start-up or expand.
Now, I know there are folks out there—like another southern straight-talker Dave Ramsey—who tell you to eat beans and rice, never borrow, and only buy used equipment. But let me tell ya, that’s a recipe for disaster in our line of work. Why?
Used equipment rarely has a warranty. Repairs instantly drain your cash. And downtime, when you can’t mow, haul, or landscape because your rig is broke down…downtime destroys profits faster than paying a fair interest rate on new equipment.
Add in the fact that banks usually charge higher rates on used equipment loans, and you’ll see why I say—used gear might feel a little cheaper up front, but it can cost you dearly in the long run.
In my early days of growing my landscape business, I thought that buying used equipment was smart…until I purchased that lemon. I bought this cheap used truck. It was over ten years old so the bank wouldn’t finance it. I pulled all my cash savings and brought it in for needed upgrades. Thirty five days later we put it on the road. Sixty two days later the engine blew up. Now…all my cash was gone AND I didn’t have a way to mobilize the new crew. Of course, the bank wouldn’t give me a loan for a new engine…so I was trapped. It was a painful lesson.
We hear similar stories every single year from contractors trying to grow their business. They followed that advice from good ‘ol Dave. No debt! Don’t pay interest! Well…
In the words of the retired football coach Lee Corso: “Not so fast my friend!”. Paying interest is a part of doing business. Landscapers large and small borrow money. Even publicly owned companies like Apple (AAPL) and Brightview (BV) borrow money.
So how do you set yourself up to get the best possible finance rate when it’s time to expand? Let’s dig in.
1) Manage Your Credit History
Your credit history is your financial reputation. Pay your bills on time. There’s never going to a “trick” that raises a credit score faster than paying on time! I’ve used this simple routine for three decades. Every Friday, we pay our bills. One Friday, we pay employees. The next Friday we pay vendors. And we make damn sure to pay those credit card accounts on time!
Here’s how you protect your financial reputation. Monitor your reports with Experian, Equifax, and TransUnion. By law, you get one free report a year from each bureau. Request your report once per year. Review them carefully and fix any errors. A higher score means you’re a safer bet, and that usually translates to lower interest rates.
2) Complete Your Credit Application with Care
Your loan application is your initial handshake with the lender. Fill it out completely—every line, every detail. Missing info throws up red flags and slows down the credit review process. Here’s a tip you might not hear everyday.
A typed credit information sheet with trade and bank references, your tax ID, address, and DUNS number on company letterhead is a smart touch. Although typing is not a requirement, it sure makes your application easier to read. When you make the banker’s job easier, your application rises to the top and gets processed faster with fewer errors.
3) Share Your Personal Financial Statement — and Sign the PG
Here’s the truth most contractors don’t hear: until your company has either a 10-year track record or $5 million in annual sales, the banker’s going to ask you for a Personal Guaranty (PG). That means if your business can’t pay, you’re personally on the hook.
I know—it sounds scary. But here’s the deal: if you want the lowest possible rate, signing a PG is almost always part of the package. And hey—if you don’t have the confidence in your own business future to stand behind it personally, why should the banker?
Keep your Personal Financial Statement (PFS) up to date—quarterly if you can. List your assets (cash, investments, real estate) and liabilities (loans, debts). That transparency, combined with your willingness to sign a PG, shows the lender you’re serious and trustworthy.
Bottom Line
Getting the best finance rate today isn’t easy—loan rates are higher than we’ve seen in a decade. But if you’ll:
- Keep your credit clean,
- Complete your application with care, and
- Share your PFS while signing the PG with confidence,
…you’ll be positioned to get fair financing and keep your company growing strong.
At Super Lawn Technologies, we’ve been helping contractors secure equipment financing since 1998. Whether you’re starting out or scaling up, we’d be proud to help you too.
Got questions? Call us at 866-923-0027. We answer the phone during business hours.
Sincerely,
Tony Bas, founder
Super Lawn Technologies
PS – If you want to learn more about getting the best finance rates for expanding your lawn or landscaping business, take a look at this video – Leasing or Purchasing, Which is Better? The video is FREE and shares often overlooked ways growing companies can get financing to expand.
