A Richmond, KY landscaping company can finance two zero-turn mowers and an enclosed trailer on one equipment agreement and a dump truck on another, and a used mower can be financed too once its hours and service records are checked. This article prices each with invented figures and adds a maintenance contract that pays a month after the work.
Invented equipment loans for two zero-turns and an enclosed trailer, a dump truck for a landscaping crew and a used zero-turn, plus an invented maintenance contract paid after month end and carried by a short line of credit draw, for a Richmond, KY landscaping company.
Landscape equipment financing for two zero-turns and an enclosed trailer
Two mowers and the trailer that carries them go together for a reason: the trailer is what lets the second mower reach a second property the same day. One agreement for all three keeps one payment date and one set of paperwork.
Invented case: two 60-inch zero-turns at $13,450.00 each and a 7-by-16-foot enclosed trailer at $9,780.00 come to $36,680.00. At an invented 10.45% annual rate, four years of monthly payments of $938.25 each pay it off. The 48 invented payments total $45,036.00, so the company pays $8,356.00 in interest for having the mowers and trailer at work from the first month.
Machines like these are what equipment financing is built around. The landscaping industry page works through turf renovation machines and hardscape tools.
A dump truck for a landscaping crew
A dump truck that carries the crew's own mulch, stone and green waste between the yard and the job is work equipment for the landscaping company, and a partner may finance it as a vehicle with its title as security.
Invented case: the crew's dump truck, a used one, costs $57,300.00 and is financed at an invented 9.75% annual rate for five years of monthly payments. The monthly payment comes to $1,210.42, and the invented total over five years is $72,625.20, with $15,325.20 of that being interest.
Before the truck is added, set its payment beside the mower agreement: $938.25 plus $1,210.42 is $2,148.67 a month in this invented case, every month.
Used mowers: hours, service records and an inspection
A used zero-turn costs less, and its price depends on engine hours and how it was kept. Before asking for financing on one, have the hour meter reading, the serial number, any dealer service records and a written inspection of the spindles, blades, belts and hydraulic drive.
Invented case: a used zero-turn with 410 hours on the meter is priced at $7,900.00. On a 24-month agreement at an invented 12.9% annual rate, the payment is $375.21, and the 24 invented payments come to $9,005.04 ($1,105.04 of interest).
A partner may set a shorter term or a higher rate on used equipment than on new, or may decline an older machine; the hours and records are what a partner may weigh.
A maintenance contract that pays after the month ends
A commercial mowing and grounds contract billed at the end of each month and paid 30 days later puts about two months between the first day of work and the first payment.
Invented case: the contract pays $3,600.00 a month, and the crew that works it costs $2,100.00 in biweekly payroll. From the first day of work to the first payment is 61 days in this invented case, which holds 4 or 5 paydays, $8,400.00 to $10,500.00 of crew payroll, depending on where the first payday falls.
A line of credit draw of $6,300.00 for the part the company's cash does not cover, carried 33 days at an invented 13.7% annual rate, costs $78.03 in interest figured daily, and it can be paid down when the first contract payment arrives. When the same gap opens on every new contract, a working capital loan is the other option to compare.
By Ledgecrest Lending · Updated
