There are more than 500,000 small landscaping companies in the United States, employing nearly a million people. These businesses generate $60 billion in revenue each year, according to 2020 stats from the research firm IBISWorld. However, like any other business, a lawn care company requires cash to grow and thrive. Depending on the type of company you own, your cash flow requirements, and what specific expenses you’re looking to finance, there are many different options for financing a landscaping business.
Most small businesses need some form of financing to help them reach their business goals and objectives. For some, the first choice is to turn to friends and family for a personal loan. However, mixing money and relationships can be a difficult endeavor, especially if the amount you need is relatively large. Other business owners may turn to a bank for loans, but it can be an expensive and lengthy process. Still, other forms of financing exist that can be helpful for business owners, including loans and grants.
Grants are available for a wide range of business purposes, from purchasing equipment to helping pay your employees. The type of grant you can apply for will depend on your needs and the specifics of your business. For example, some grants are designed to benefit female founders or young entrepreneurs. Others put an emphasis on job creation and support in a specific region. You can look into all of your options by searching for a comprehensive list of available grants from the IRS.
A small business loan for a landscaping company can be an excellent way to get the extra cash you need, and it can also be used to fund an acquisition or expansion project. You can choose from a number of business loan types, including SBA loans. These loans, which are backed by the U.S. Small Business Administration, usually have lower credit score requirements than traditional bank loans and come with favorable terms.
Another option is a business line of credit, which works similarly to a credit card. This financing option is offered by both traditional banks and alternative lenders, with the latter often having more flexible approval requirements and credit limits than a bank. You’ll only make payments on money you spend under the limit, so a line of credit is an effective way to cover unexpected expenses and keep your business running smoothly.
Finally, you can also consider a merchant cash advance for your business. An MCA isn’t technically a loan, but rather an advance of your business’s future credit and debit card receipts. Instead of receiving an upfront sum, you’ll receive a daily percentage of your business’s future receipts. This is a great option for businesses with seasonal fluctuations, as the payments will adjust with your revenue levels. This type of financing can be a good fit for a lawn care company, as it’s one of the quickest ways to get cash in hand. Crestmont Capital offers a variety of flexible MCA options for landscaping businesses. small business loans for lawn care