Mike Andes visits Arizona Yard Maintenance, a $1.2M business drowning in equipment debt. They're paying $35,000 a month toward loans for machines that sit idle, with $300 daily payments stretching another ten months. The core problem: expensive gear they don't use enough to justify.
Questions this video answers
About $1.2 million.
Over $35,000 per month.
A $100,000 piece of equipment and a $90,000 piece of equipment.
About $300 per day, for roughly 10 more months.
Speaker mentions figures around 17–18% and also says "more like 40" (conversational/uncertain).
Today we're at Arizona Yard Maintenance, where they do over $1.2 million in.
Annual revenue right now. It's good, but I'm just barely scraping by, basically paycheck to paycheck.
However, there's hundreds of thousands of dollars worth of debt on equipment like this that's not being used.
17, 18% interest, something like that? No, it's more like 40. I wasn't able to pay it. I just told them, like, hey, like, I can't continue doing this. Like, I'm gonna quit the business entirely.
This $100,000 piece of equipment not being used. This $90,000 piece of equipment not being used very much. Okay. The chipper. We don't use that very often. Let's get, like, all of this. I'd just be ruining of everything.
I've thought about it, but I've also put a lot into everything I've had and paid interest payments. I don't want to. I'd rather struggle for a little bit longer.
Right now, they're paying over $35,000 a month in just debt payments.
But that doesn't include the $8,000. It's like 300 bucks a day. You're paying that off kind of thing. Yeah. And that's for, like, 10 more months.
Let's see if we can turn this thing around. I would love, in five years, if you're like, I have paid everything off. We now have a $2 million business, and we're in a 50% profit margin. Everything is. Oh, man, I would love it.
