Creating a successful lawn care business isn’t just about the right equipment and marketing; it requires adequate financing as well. Many small landscapers are unaware that various types of loans exist that can help them meet their goals and grow their business. Instead, they rely on traditional banks and credit cards that can hinder their company’s growth and create financial headaches down the road.
The best financing for your lawn care business may depend on what you’re hoping to finance, your overall business plan and what specific challenges your company is facing. Whether you need general working capital to pay for odds and ends or are in need of funds to stave off cash flow issues, these business loans for landscapers may be the solution.
Often, landscape contractors turn to loans for marketing and advertising purposes. They can use these to buy pricy print and billboard ads, launch social media campaigns and more. They can also be used to hire an external firm to handle their company’s advertising efforts and marketing for a fee.
As with other small business loan options, it’s important to read all terms and conditions before applying for a particular loan or grant. This includes any eligibility requirements, application process and other details. It can be helpful to work with a business advisor or mentor to better understand your financing needs and how different loan and grant options can fit them.
Landscaping businesses tend to be seasonal, and can experience revenue drops in the fall and winter months as clients are less likely to need their services. For this reason, it’s important for those looking to secure business loans for landscaping to apply during their peak months. This will allow them to demonstrate a high level of profitability and give them a better chance of being approved for their funding.
There are several different government-backed business loan programs that can be used for landscaping and lawn care companies. These programs include the Small Business Administration’s 7(a) loan program and their affiliate the Community Advantage Program. These loans can be used to purchase or upgrade lawn care and landscaping equipment and provide financing for other small business expenses, such as hiring and payroll costs.
Another option is a merchant cash advance (MCA). An MCA is not technically a loan but rather an upfront sum of money that your company will repay in exchange for a daily percentage of your business’s future credit and debit card revenues. With a growing variety of flexible MCA options available, this type of business financing is an excellent choice for lawn care companies looking to avoid the long application and repayment periods associated with traditional loans.
Other government-backed funding opportunities for small businesses in the lawn and landscape industry include grant programs focused on green initiatives, and business improvements. These grants are typically offered on a state or local level and can be a great way to reduce your business’s environmental impact while boosting its profile in the community. small business loans for lawn care