As the business owner of a landscaping company, you have many expenses including supplies and equipment, payroll and other employees, miscellaneous costs, and ongoing maintenance of your equipment. When you need a little extra cash to manage your daily operations, it’s a good idea to look into a small business loan for landscaping. While the typical option for financing your business is to go to a bank, this approach can be difficult for businesses that don’t have enough collateral or a high credit score. Fortunately, there are more financing options today than ever before.
When looking for a loan for a landscaping or lawn care company, you will need to provide certain documentation like financial statements and a business plan. It’s important to present the best picture of your business to lenders so that they can approve you for a lending product that suits your business needs. You’ll also want to consider how the loan will be paid back and what the repayment terms will be.
Depending on your need, you may want to look into traditional business loans with competitive interest rates and long-term repayment periods. However, these loans may require you to put up some form of collateral and have a minimum credit score. In these cases, alternative financing such as business lines of credit or merchant cash advances could be a better fit for you and your business.
In these types of lending products, you will be provided with a line of credit that is flexible and can be used for any purpose that your business needs it. With this type of financing, you can borrow up to the amount of your credit limit and as you pay it down, it will be available for you to use again. Many landscapers use these funding solutions to cover upfront inventory costs or bridge cash flow in between client invoice payments.
Landscaping and lawn care companies are highly seasonal, which can make it challenging for them to maintain strong cash flow and stay afloat during the off-season. It’s therefore important to apply for a loan during your business’s busiest season to show your ability to repay the debt and prepare yourself for the off-season. Luckily, many alternative lenders understand seasonality and offer financing options that are more flexible to meet these needs. Moreover, some of these lenders can also process funding applications much faster than traditional banks and the SBA. This makes them an ideal choice for many small businesses that need to act quickly when it comes to financing their business.