When looking for a landscaping loan to fund your business endeavors, consider the following types of financing.
Landscaping Equipment Loan
If you need landscape trailer financing or other equipment funding, you have options. Use equipment financing to buy or lease the machinery you need.
Usually, the equipment will serve as collateral to secure the loan. That’s why, in some instances, you may be able to finance up to 100% of the equipment’s value.
Business Line of Credit
If you know you’ll have fluctuating financing needs, a business line of credit may be the best fit. It works similarly to a credit card: You’re approved for a certain amount, and you use the funds when you need them (or don’t).
You aren’t charged interest until you make a purchase. Typically, as you pay back your debt, your credit line is restored up to the original amount. You can spend a credit line on virtually any business need – pay bills, make repairs, cover overhead during slow months and more.
Term loan funds can be used for just about anything and can be repaid in a few months or years, depending on the specific loan terms.
These loans have regular payments, which, depending on your specific terms, could be due on a daily, weekly or monthly basis until paid in full. Use funds for operational expenses, supply or equipment purchases, business advertising, staffing costs, debt refinancing, expansion and more.
Working Capital Loan
The term working capital loan is an umbrella term for financing that is generally quick to fund and meant to be repaid quickly.
It’s designed to function as buffer financing when you need help covering short-term operational expenses, such as debt payments and payroll.
This type of funding can be easier and faster to obtain when compared to a conventional term loan.
SBA-backed financing is another option if you’re looking for small business loans for your lawn care company. These loans are touted for their competitive interest rates and repayment terms, spanning several years.
While there’s a lot of paperwork involved and the application and funding process can take some time, SBA loans can be conducive to borrowers who may have been ineligible for conventional bank loans. That’s because the U.S. Small Business Administration guarantees a portion of each loan, so there’s less risk involved for the lending partner.
Merchant Cash Advance
If you need fast access to funds and your credit score is in the low 500s, consider a merchant cash advance. This type of financing provides borrowers with an advance of funds based on their business’s expected revenue and cash flow.
Repayments are made daily or weekly, and are often fixed. Repayment often ranges between 3-18 months.