If you’re in the landscaping business, chances are you need a steady flow of money to keep your equipment running, pay for new staff and supplies and meet payroll during peak seasons. Whether you’re looking to expand or just keep your business afloat, there are many financing options available for lawn care businesses.
The right type of business loan for your landscaping company will depend on how much funding you need, your financial history and your current monthly sales. For the largest loan amounts with the lowest rates and longest terms, SBA 7(a) loans and bank loans are typically your best option, though you may need solid collateral or a good credit score to be approved.
Short-term and working capital loans are also popular for landscaping companies. These can help you protect cash reserves during your low season and cover unexpected expenses, hire seasonal staff or boost marketing campaigns. These types of loans are often easier to qualify for than long-term business loans because they have more flexible requirements and require less documentation.
Landscaping contractors often rely on subcontractors to assist them on jobs. These employees need to be paid before you can receive payment from your client, so having access to a quick infusion of funding can make the difference between success and failure.
If you’re a startup business, it can be tough to find the cash you need to buy or lease the equipment and materials you need to get started. However, some lenders offer startup and working capital loans for landscaping companies with less than six months in operation. These loans are usually smaller than traditional business loans and have more flexible eligibility requirements, including lower minimum credit scores.
There is also an increasing demand for landscapers to work on commercial projects like malls and hospitals, which require larger contracts with higher wages and more expensive equipment. With the right amount of working capital, you can increase your capacity to bid on bigger jobs and attract more clients, leading to greater revenue and growth.
Alternative lending companies like Greenbox Capital provide more flexible financing options for landscaping businesses that don’t meet the strict criteria of SBA or bank loans. These lenders offer flexible approval based on the health and potential of your business, with a focus on cash flow and a less restrictive credit score than banks. They also have faster turnaround times, with some lenders able to approve and deposit funds within one business day.
These alternative lenders also offer non-loan funding solutions like merchant cash advances, invoice factoring and more. These are useful for landscaping companies that process a lot of credit card payments because they can deliver fast cash in exchange for a small percentage of your daily or weekly credit and debit sales. You can choose to repay this debt with interest on a predetermined schedule or simply wait until you’ve received the full payment from your client. These funding options are a great fit for landscaping companies that need to meet short-term funding needs and don’t want to risk their assets or personal homes. landscaping business loans