Whether you need to buy new landscaping equipment, upgrade your fleet of trucks and trailers or get a jump on the next growing season, running a lawn care business requires substantial day-to-day funds. Various financing options exist for this type of small business, including those for seasonal businesses to help mitigate supply chain challenges and volatility or to bridge cash gaps between busy seasons.
Invoice Financing
One of the best financing options for landscapers is invoice financing, which can provide quick cash flow infusions to cover expenses like payroll and overhead. Lenders offer this type of financing in the form of advances on your outstanding customer payments, which you then pay back as your customers pay their balances.
Another option for landscaping companies is a business line of credit, which provides access to flexible, revolving funds that you can use as needed. Often, this financing is easier to qualify for than a traditional bank loan and comes with competitive interest rates.
If your business is seasonal, keep in mind that lenders may require several months of bank statements to show consistent revenue patterns and a strong history of repayment. To minimize your financing requirements and maximize your funding opportunities, consider applying for a short-term business loan when you have the most money in the bank, such as during your highest sales months.
Working Capital Loans
If your landscaping business experiences a surge in seasonal sales, or you simply need a quick infusion of funding to keep your operations running smoothly, you may want to consider working capital loans. Unlike bank loans, these financing options typically don’t require you to put up collateral or meet minimum credit score requirements.
Whether your company needs to purchase new equipment, hire additional staff or run marketing campaigns, Credibly’s working capital loans provide the financial boost you need without imposing long-term debt on your business. Pay only for the funds you use and never pay interest on money that sits idle.
Getting the right equipment is one of the biggest expenses for any landscaping business. With equipment financing, you can obtain the funds to buy or lease large machinery like mowers and augers while leaving your existing cash free for other operating costs. This type of financing is available through both traditional and alternative lenders.
Business Bridge Loans
If your business’s revenue patterns are cyclical, or you have a new and growing client base, you may need to turn to short-term financing. These options can help you protect your cash reserves during your off season while also addressing immediate needs, such as payroll or equipment purchases.
Business bridge loans often have lower requirements than traditional bank loans and may have shorter terms, making them an excellent option for landscaping companies with a smaller credit history or less robust financials. Lenders typically focus more on the health and growth potential of a business, and less on personal or business credit scores. Additionally, alternative lenders often offer a simpler application process and faster turnaround times than the SBA or banks.
Equipment Financing
Equipment financing is a great way for a landscaping company to purchase tools and large machinery. This type of business financing uses the equipment or inventory as collateral for the loan, which can make it easier for newer businesses and those with lower credit scores to obtain funding. Landscapers can use equipment financing to purchase small tools like hedge shears, trowls, and shovels as well as larger machines such as mowers, vehicles, or even a landscaping trailer.
Many traditional lenders have rigid requirements and approval processes that can be difficult for small landscaping companies to meet, especially those with cyclical revenue patterns and unstable cash flow. Alternative online lenders can provide quick funding to help landscaping companies with these challenges and may focus on factors other than financial history and credit score. These funding solutions include working capital loans, merchant cash advances, and a line of credit. These types of short-term financing options are ideal for covering day-to-day expenses, making payroll on a particularly busy month, or addressing cash flow issues during slow seasons.small business loan for landscaping
