The 0% Interest Loan Scam 🚨

Hey team,

Let’s talk about something that sounds smart… but is quietly eating away at the profitability of thousands of home service businesses 👇

The 0% Interest Loan Scam 🚨

It sounds like a dream deal:

“Zero percent interest?! That’s free money!”

But here's the truth no one tells you…

1. You’re Still Paying the Price 💸

Manufacturers and dealers bake the cost of financing into the sale price.

That shiny mower you think you got at 0% interest? It probably costs $1,000–$1,500 more than it would’ve if you paid cash. Why? Because someone has to pay for the financing—spoiler alert: it’s you.

Think of it like those “buy now, pay later” options on Amazon. You're not getting a discount—you're just spreading out the pain (and overpaying for convenience).

2. “I’ll Start Making Money Once It’s Paid Off” – Nope ❌

This is a dangerous mindset.

I hear it all the time:

“Once I pay off the equipment, that’s when I’ll start really profiting.”

But let’s do the math:

You buy a mower with a 3-year 0% loan. You use it 200 days a year, 3 hours per day = 2,000 hours over the life of the loan. By the time you finally own it? ⚠️ The mower is scrap metal. You just spent 3 years paying off something that is no longer an asset.

3. Ownership ≠ Freedom (Especially with Equipment) 🧯

Even when the loan is done, you still have to:

Maintain it

Store it

Insure it

Deal with breakdowns

Owning an old piece of equipment isn’t a blessing—it’s often a burden. And guess what? You’ll probably end up financing the next mower before this one dies. Make sure you will be using the new asset A LOT before buying it.

4. Yes, Debt Can Accelerate Growth… But at What Risk? 🤔

I’m not anti-debt. I’ve used debt to grow my businesses.

But you need to ask yourself:

“If I told you that HALF the companies in your stock portfolio would go bankrupt in 5 years… would you borrow money to invest in their stock?”

No way. Investors would run away. Half of small businesses will fail in the next 5 years. Yet, many will take on debt on their path to bankruptcy. Look at the stats. It is a bad idea to take risks in a small business with an unproven revenue model. Prove that the business is profitable and scalable. Then (if you want to go faster) take on debt for equipment, trucks, or expansion.

Final Word 🧠

Next time someone offers you a “0% interest” loan, ask yourself:

Am I really getting a deal?

Will this equipment still be useful when it’s finally paid off?

Could I grow slower, smarter, and stay in business longer?

Because growth without profit is bankruptcy with more steps.

Stay sharp,

Mike

PS - Want free in-person coaching? I will fly out to your business. For free. Go to MikeAndes.com/turnaround and fill out the application.