The success of a landscaping business can be influenced by a number of factors. The right equipment, sufficient workforce and the ability to meet demand are just a few of them. However, there is also the question of funding and finances to keep the business moving forward. The good news is that there are a variety of options for financing a landscaping business. In addition to the typical bank loans that require a credit score of at least 650 and a certain amount of time in business, there are alternative lenders who specialize in the financing of small businesses. Some offer quick turnarounds (as little as a single business day), easy approval requirements and minimal documentation, and others can provide more substantial amounts of funds and lower interest rates.
In addition, traditional financing methods can be difficult for landscaping companies because of their seasonal nature and low margins. As a result, many of these businesses find it challenging to qualify for financing through banks or the Small Business Administration (SBA). Luckily, there are alternatives to this type of financing. These include alternative lending, merchant cash advances and invoice factoring, which are designed to help small businesses like landscaping companies thrive despite slow times.
Landscaping business loans are often used to cover expenses that aren’t covered by sales or other income. These can include things like payroll, equipment maintenance, new hires and supplies. They can also be used for expansion. Landscaping companies that have the capital available to invest in new technology, better vehicles or more workers can increase their productivity and ultimately see a greater return on investment.
In addition to day-to-day costs, there is a growing need for landscapers to have access to working capital in order to handle the increasing demands of their clients. For instance, more homeowners and commercial clients are requesting xeriscaping, which involves a combination of drought-tolerant plants, practical turf and efficient irrigation. This type of landscaping has grown in popularity because of the drought and is expected to continue to grow as water use restrictions are implemented in various states across the country.
Other business-related expenses can also be expensive, such as higher nursery input costs, which are rising 12-14% over pre-pandemic levels. A landscaping business loan can help you pay these increased expenses and maintain your client base. This is particularly important in the summer, when there is a high demand for gardening services. Having access to a quick infusion of working capital can make the difference between thriving and faltering during this busy season.