Landscaping businesses are capital intensive. Most of the time, business owners need the help of landscaping loans to cover operating costs. Running a landscaping business takes a lot more than just owning a lawnmower. You’ll need high-quality equipment, skilled employees and a great marketing strategy, among other things – and all these can cost a lot.
Luckily, there are options for small business owners who need access to additional working capital. Here are some of the loans options for your landscaping business:
1. Equipment Financing
When running a landscaping business, you’ll need a variety of equipment, like lawnmowers, trash bins and vehicles. As it’s name implies, equipment financing provides you with the funds needed to pay for equipment purchases. The amount you’re approved to borrow is based on the type of equipment you’re planning to purchase.
If you’ve taken out a car loan, then you know how equipment financing works. The equipment you’re looking to purchase is the collateral for the loan. This means you won’t have to pledge any personal or business asset to secure the loan.
2. Merchant Cash Advance
If your business doesn’t have collateral or perfect credit to qualify for a bank loan, then you might want to check out a merchant cash advance (MCA). Technically, an MCA is not a loan; instead, it’s an advance against your future sales. Ideally, you pay back the loan by allowing lenders to take a percentage of your future debit or credit sales until the full amount has been repaid.
3. Business Line of Credit
With a business line of credit, lenders give you a predetermined credit limit that you can draw funds from whenever the need arises. You only have to pay for the money you’ve withdrawn, plus the interest. Once you’ve paid back your credit limit, you can use the money from your line of credit again. You can use a business line of credit to purchase inventory, add working capital, make payroll, buy equipment, refinance a loan and pay for other business expenses.
4. Short-Term Loans
Short-term loans are ideal if you need funds to finance short-term needs. This type of loan can help you manage your cash flow better, take advantage of business opportunities that come your way and pay for unforeseen expenses. In a short-term business loan, lenders give you a lump sum of money up front, which you have to pay back over a certain period along with the lender’s fees.
Lenders usually offer smaller loan amounts and shorter repayment terms for short-term loans. Additionally, lenders often require you to make daily payments rather than monthly payments.
Landscaping Loans Long Island
If you want to know more about landscaping loans Long Island, SMB Compass can help! Our team of professionals is willing to assist you and address your concerns. Give us a call at (888) 853-8922 or email us at email@example.com to talk to a lending expert today.