Get an Edge on the Competition with Landscaping Business Loans

Landscaping Business Financing Helps Maintain Your Growth Plans

For lawn care professionals, landscaping business loans can be hard to come by. The seasonal nature of the business makes traditional lenders hesitant to offer landscaping business loans. This leaves small lawn care companies with few options. However, emerging lending models designed specifically for small landscaping companies are eliminating this problem. Access to short-term financing can empower lawn care business owners to take on new projects and overcome the funding challenges associated with seasonal lulls.

The Current Environment for Landscaping Business Loans

As a rule, landscapers rely heavily on the construction industry. New construction creates a need for new landscaping and ongoing property maintenance. Beyond relying on new construction, an Ibis World study also found that landscapers depend on high-income households willing to pay for regular maintenance services.

Healthy circumstances in the above-mentioned markets are fostering demand and creating industry growth. Ibis World predicts the landscaping industry experienced a 4.7 percent compound annual growth rate from 2013 to 2018 that will continue to expand in the coming years. Future opportunity is so strong in the sector that Ibis World believes more small-scale landscapers will enter the market.

New demand and increased competition can result in a need for more working capital. Landscaping business loans provide the funds to purchase materials and equipment, like commercial mowers, as well as invest in advertising.

The Complexity of Landscaping Business Financing

Most landscapers operate on a seasonal schedule. This pattern results in inconsistent cash flow because revenues vary based on the time of year. The nature of new landscaping projects compounds this issue. Taking on maintenance clients or a new construction project brings significant demand for landscaping business loans. For a given project, a landscaping business may need to fund:

• New lawn care equipment
• Additional workers
• Raw materials
• New vehicles

When bidding for a project, landscapers need to know their available resources and their ability to complete the customer’s request on-time and within budget. Growth is closely tied to how landscapers maintain their cash flow. To be successful, landscaping business owners must have the proper capital to take on new projects and service customers.

But because landscaping business revenue can be unpredictable, traditional banks are not eager offer landscaping business loans. Revenues fluctuate based on the season and other factors, and if cash flow declines, the company may struggle to pay back the loan.

Thankfully, short-term funding opportunities are emerging as a solution, offering landscaping business loans that are flexible enough to meet the industry’s needs.

Loan Opportunities for Professional Landscapers

Landscaping businesses can benefit from a variety of loan types, but a few standout options include:

Working Capital

These loans provide funds to cover a temporary cash shortfall. For example, they’re great if you need to hire a new staff member, but don’t expect to generate enough revenue to support the additional worker for the first few months.

Bridge Loans

With the help of business bridge loans, you can get through slow seasons and sustain the core operations of your landscaping business year-round. This form of gap financing is typically used on a short term basis.

Equipment Financing

This loan is designed to help you fund business equipment purchases, like stake bed trucks, so they can tackle projects and enact modern operational strategies.

Business Expansion

A wave of new construction can provide you with an opportunity to expand. Loans designed specifically to align with growth revenue potential can help you take the expansion leap.