Landscaping Business Loans

Landscaping Business Loans

When business slows down, a landscaping company or lawn care firm can have difficulties paying its employees and sustaining itself. Getting the right financing can help ease these problems.

Depending on your specific needs, you may be interested in one of the following types of loans for landscaping businesses: business lines of credit, invoice factoring, or equipment financing.

Invoice Financing

Landscaping businesses need to arm themselves with specialized equipment, hire a highly trained team and pay for marketing – all of which requires adequate working capital. A landscaping business loan can provide the financing a company needs to cover short-term expenses, grow their client base, work on a project or deal with financial emergencies that arise.

Landscaping businesses face a range of challenges including higher nursery input costs due to pandemic-related supply shortages, labor issues caused by H-2B limitations and increased competition from big box retailers offering DIY landscape services. A small business loan can help finance a startup or purchase existing lawn care or landscaping companies to expand into new markets. In addition to traditional loans, alternative lending options like merchant cash advances can provide a quick infusion of working capital in exchange for a percentage of a landscaping company’s credit and debit card sales. This type of funding is ideal for businesses that are unable to meet the stricter requirements of banks and credit unions.

Working Capital Loans

As a landscaper, you probably have a lot of ideas for ways to delight your clients and grow your business. Unfortunately, many of these visions require the latest equipment and an infusion of capital that your company may not have on hand.

A landscaping business loan can help you acquire this equipment and get your business moving in the right direction. Working capital loans typically have shorter repayment terms than business credit cards and can be used for any operational expenses, including payroll, inventory, and more.

Unlike banks, alternative lenders are often more willing to approve landscaping business loans and tend to have fewer requirements than the SBA. Additionally, you can expect a faster turnaround time—sometimes in as little as one business day. This is especially helpful if you’re a newer business that needs funding sooner than a traditional lender can process an application.

Business Bridge Loans

Business bridge loans are a short-term financing option that can be used to fill in the gap between invoice due dates and receiving cash from customers. As a result, these loan types are often best for landscaping businesses that experience seasonal dips in revenue or have plans to expand their operations but can’t afford to wait until they generate enough new income to support those growth objectives.

In addition, these loans have a shorter lending process than traditional bank financing because they require less financial documentation and aren’t subject to the same thorough credit vetting. However, because the lender takes on more risk by lending quickly to companies in need of money, bridge loans typically have higher interest rates than other commercial funding options.

Business bridge loan lenders like Lendio act as intermediaries and can connect you with multiple lending options that provide different types of financing based on your unique business needs. Learn more about the pros and cons of these bridge financing solutions so that you can find the right one for your company’s financial situation.

Equipment Financing

A large part of running a landscaping business involves having the right equipment. This can include everything from small tools like shears to larger pieces of equipment like lawn mowers and augers. Equipment financing is a great way to purchase the equipment your business needs, while keeping cash free for other operational costs. This type of financing typically does not require perfect credit or a large down payment, and you can usually apply online with several lenders or lending marketplaces.

Whether you need to hire employees, buy new machinery or boost marketing, the best business loans for landscapers will depend on your company’s current and future goals. You’ll also need to consider factors like seasonality, your financial history and monthly sales. For instance, non-loan financing options like merchant cash advances and invoice factoring may offer quick infusions of working capital that are ideal for addressing urgent needs like fueling sales growth or acquiring new equipment and supplies.

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