When looking to expand or grow your landscaping business, you’ll definitely need cash – and a lot of it. Even though you may be ready to expand or branch out, your wallet may not be. If cash isn’t readily available or your budget isn’t enough to cover expenses, there are a number of landscaping loans you might want to consider.
Most business owners think that banks are the only way to secure small business loans. Then, when they’re denied a loan due to minimal collateral, insufficient business records, or poor credit history, it can deter their dreams of starting or expanding their business.
Fortunately, there are numerous funding options available for landscaping businesses who need a bit of a financial push to get their business operations going smoothly.
The Best Landscaping Loans for Your Business
Instead of relying solely on banks, consider a landscaping loan as an alternative solution to fund your landscaping business. Here’s a list of the best options:
1. Merchant Cash Advance
A merchant cash advance enables businesses to access immediate working capital without having to show perfect credit or provide collateral. Technically, a merchant cash advance is not a loan but a cash advance against your future credit sales. In paying back the advance, lenders take a percentage of your credit or debit sales until it has been paid back in full.
2. Line of Credit
A business line of credit works much like a credit card. Lenders assign you a credit limit to withdraw funds from when the need arises. You don’t have to pay back the loan until you’ve actually withdrawn the money, and you only have to pay interest on the amount you’ve used. Once the loan has been paid back, you can use the money again as needed – just like a revolving credit.
You can use a business line of credit to purchase inventory, buy equipment, cover employee payroll, pay off debt, or bridge cash flow gaps.
3. Equipment Financing
In order to start or operate a landscaping business, you need a variety of equipment like trash bins, vehicles, lawn mowers, leaf blowers, sprayers and string trimmers, among other things. Equipment financing provides you with the funds needed to purchase these essential items. The rates, terms, and the amount you can borrow depend on the type of equipment purchased, and whether you bought it brand new or used.
In most cases, you won’t have to put up any personal or business assets to secure your loan since the equipment you purchase acts as collateral. Depending on the lender, equipment loans have a fixed interest rate and term length so you don’t have to deal with fluctuating monthly payments.
Are you interested in securing landscaping loans for your business? SMB Compass has helped hundreds of businesses reach their full potential by providing them with the funds they need to run their business. If you want to know more about landscaping loans, you can contact us at (888) 853-8922 or via email at firstname.lastname@example.org to get a free quote.