📪 HH #67: The #1 money mistake that can kill your business
- Justin Hubbard
- Feb 12
- 5 min read
Updated: Feb 24
Good morning, haulers ☕
Growing a business is like driving uphill—you need momentum, but if you burn through your cash too fast, you’ll stall out before reaching the top. I’ve been there. Over the years, I’ve learned that negotiating better payment terms and using credit wisely can create the breathing room to scale without choking your finances.
Here’s how I do it—and how you can, too.
What We’ll Cover in This Newsletter:
Why cash flow is the real lifeblood of your business (not revenue)
How to negotiate better payment terms so you don’t tie up cash
How to use credit strategically to stretch payment cycles and increase profits
The role of personal credit in securing business financing
A real-world breakdown of how this works in action
Key takeaways you can apply today
The Problem: Growth Costs Money, But Upfront Cash Can Be a Bottleneck
"Cash combined with courage in a crisis is priceless." Warren Buffett
Most business owners hit the same wall: you need to invest in equipment, inventory, or materials to grow, but large upfront costs can drain your reserves.
If you don’t have the cash, you’re stuck.
But what if you could get what you need now without paying everything upfront? That’s exactly what I did when I needed to buy more dumpsters for my business.
The Plan: Negotiating Payment Terms to Keep More Cash in Your Pocket
A few years back, I worked out a game-changing deal with my dumpster manufacturer. After buying a few dumpsters outright, I sat down with them and explained my growth goals.
Instead of asking for a discount, I asked for better payment terms.
Here’s what we agreed on:
✅ No upfront payment required—they would build the dumpsters without a deposit.
✅ Pay-as-you-go—I’d only pay when I picked each one up.
✅ No large lump sums tying up cash—even if I ordered 15 dumpsters at once.
For a small business, this was a game-changer. It meant I could finance my growth with cash flow, not capital.
Every dollar I didn’t have to pay upfront was a dollar I could reinvest into marketing, hiring, or operations.
The Acceleration: Using Credit to Extend Payment Cycles
Once I had these terms in place, I layered in another advantage: smart credit card use.
I paid for each dumpster with a 2% cashback credit card.
Each purchase gave me 30–60 days before the payment was due, depending on the billing cycle.
If I picked up a dumpster right after my billing cycle closed, I wouldn’t owe anything for almost two months.
Why This Works
If I rent that dumpster out once a week during those 60 days, that’s 8–9 rentals before I even pay for it.
Net profit per rental: $200
Total profit before paying: $1,600
Original cost of the dumpster: $5,000
Out-of-pocket cost after revenue: $3,400
And here’s the kicker: that dumpster keeps making money for years.
"The number one reason businesses fail is they run out of money." Kevin O’Leary
The Bonus: Balance Transfers to Stretch Your Cash Further
If your credit is solid, here’s an extra move: balance transfers.
Some credit cards offer low-interest balance transfers—often 3% for 12 months.
If I buy a $10,000 batch of equipment on a 2% cashback card, then transfer the balance to a 3% interest card, I’m only paying 1% interest for an entire year.
That’s just $100 in total interest for a $10,000 purchase—while keeping cash in my business longer.
The Foundation: Why Your Personal Credit Score Matters More Than You Think
In the early years of your business, your personal credit score is everything.
Banks, equipment leasing companies, and suppliers don’t care how big your business dreams are.
They look at your personal credit first before giving you access to:
✔ Business credit cards
✔ Equipment financing (trucks, dumpsters, tools, etc.)
✔ Leases for office space or storage yards
✔ Lines of credit and loans
If your personal credit score isn’t solid, you’ll get worse rates, lower credit limits, or flat-out rejections. That means you’ll need more cash upfront, which slows your growth.
How to Strengthen Your Credit for Business Success:
✅ Pay your personal bills on time—it directly impacts your business opportunities.
✅ Avoid maxing out your personal credit cards—credit utilization affects your score.
✅ If you have past issues, start rebuilding ASAP—even small improvements matter.
✅ Open a business credit card early and keep the balance low.
Think of your personal credit score as the key that unlocks funding for your business. The stronger it is, the more leverage you’ll have to negotiate better deals, access higher credit limits, and secure the equipment you need to grow.
What We’ve Learned Today:
✅ Cash flow matters more than revenue—don’t let large upfront costs tie up your money.
✅ Negotiate better payment terms—paying as you go gives you more financial flexibility.
✅ Use credit cards strategically—cashback and billing cycles can extend your payment period.
✅ Balance transfers can help—stretching your payments over time can keep more cash in your business.
✅ Your personal credit score is key—it affects everything from truck financing to business credit lines.
Your Next Step: Apply This to Your Business
Where can you negotiate better payment terms? Could you use credit more strategically to keep cash on hand?
Small shifts in how you manage payments can free up cash, ease financial stress, and make growth more sustainable.
Hit reply and let me know—have you used any of these strategies? Or are you thinking about trying them? I’d love to hear how this could work for your business.✌️
Justin Hubbard
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4. Financing for Trucks and EquipmentPlanning to grow your fleet or upgrade your equipment? I can connect you with flexible financing options designed for service businesses. Reach out, and I’ll guide you through the next steps.
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