As the weather gets warmer and your lawn care business kicks into high gear, you’ll need to ensure that you have enough working capital on hand. You may be looking to invest in new machinery or hire more employees, and these investments can be expensive. Fortunately, there are a variety of small business loan options that can make financing your landscaping company affordable.
Landscaping business loans can help you grow your operations and expand to meet the needs of your customers. They can also provide the money you need to cover cyclical revenue swings. However, there are some important factors to consider that could impact your lending options, including the seasonality of your business and how you’re planning on using the funds.
The right loan option, lender, and interest rate can help you maximize the ROI of your landscaping investments. For example, you can use landscaper funding to purchase multi-purpose machinery that can perform a number of tasks to save on operational costs, reduce time spent switching between machines on site, and eliminate jobsite clutter. Landscaper funding can also be used to purchase and implement software like quoting, scheduling, and invoicing to improve efficiency and client relationships.
Your business will need a vehicle to travel between jobs, visit clients, and deliver materials to project sites. You’ll likely need a truck that’s specifically designed for the work you do, with attachments to carry heavy loads and accommodate tools and equipment. With a truck that’s designed to withstand the wear and tear of your busy jobsite, you can keep it running as long as you need it, which will save you on maintenance costs in the long run.
You’ll probably need to buy a variety of materials for your landscaping projects, and many of these will require a significant upfront investment. You’ll also need to pay for things like landscaping insurance, liability coverage, and business licenses. Landscaping business loans can be used to cover these expenses, as well as other startup costs and ongoing operating costs.
If your business is seasonal, you may have difficulty obtaining a traditional bank loan because lenders will want to see consistent revenues throughout the year before approving your application. However, alternative lenders typically have more flexible requirements and can process applications in as little as one business day.
In addition to traditional working capital loans, alternative lenders offer innovative non-loan financing options such as merchant cash advances (MCAs). MCAs give you a lump sum of working capital in exchange for a percentage of your daily or weekly credit and debit card sales until the advance is paid back. Because of their faster turnaround and simplified application process, these types of financing solutions can be a great fit for seasonal businesses that may not meet the strict criteria for traditional banking or SBA loans. They can also be easier to obtain for a newer business that has less financial history and a lower credit score.