Landscaping business loans provide the cash needed to cover the costs of running a lawn care or landscaping company. These financing solutions can help you keep your business afloat during seasonal downtimes, or purchase equipment that will enable you to take on more work and grow your company. Many lenders offer a variety of financing options that can be tailored to meet your specific needs. However, obtaining a business loan can be difficult for some companies because they lack the collateral and financial strength that lenders look for in potential borrowers. There are alternative financing options for landscaping businesses, however, that can make it easier to obtain the funds your company needs to thrive.
The most common approach to obtaining a business loan for a landscaping or lawn care company is to head to your local bank. While banks and conventional lenders can be a good source of funding, they typically require a great deal of paperwork, minimum credit scores, and a lot of time in business before approving a loan. For landscaping companies that don’t have a lot of time in business or a great credit score, these requirements can be prohibitive.
A number of different financing options are available for landscaping and lawn care businesses, ranging from short-term business loans to working capital loans. Short-term business loans are usually less than a year in length and provide the financing needed to cover unexpected expenses that might come up in the meantime. They can also be used to buy equipment that will improve your company’s efficiency and allow it to take on more work, or pay for marketing costs that will get your name out there in the community.
Many types of working capital loans are available for landscaping and lawn care companies, ranging from quick cash advances to small business lines of credit. A cash advance for a landscaping or lawn care business works by selling future sales to a financing company in exchange for an up-front sum of money. As invoices are paid, a portion of the money received is used to pay back the debt. This type of working capital loan is a great way to cover a lot of the day-to-day expenses that come up for landscaping and lawn care companies, but can be a bit more costly than other alternatives.
Many landscape and lawn care companies are cyclical, meaning that they have high sales during certain times of the year and lower sales in other seasons. This can make it challenging to show steady earnings when applying for a business loan, since most lenders require that you submit several months of bank statements to assess your financial strength. There are financing options designed for cyclical companies that can help you bridge the gap between these periods of strong and weak sales, including invoice financing. This option allows you to borrow as much or as little as you need, and repayment terms are flexible.