Landscaping businesses are capital intensive. That’s why so often business owners need the help of landscaping loans to cover operating costs. Running a landscaping business involves much more than just owning a lawnmower. You’ll need high-quality equipment, skilled employees and a great marketing strategy, among other things, which will require you set aside an adequate budget to accommodate these needs.
Fortunately, there are a number of various options for small business owners who need access to additional working capital.
Here are several of the funding options available 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 its 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 on purchasing.
If you’ve taken out a car loan in the past, 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 upfront to secure the funding.
2. Merchant Cash Advance
If your business doesn’t have collateral or enough 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; rather, it’s an advance against your future sales. Ideally, you repay the the borrowed funds 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 You only have to pay for the money you’ve withdrawn, plus the interest.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 repaid what you owe, you can use the money from your line of credit again. A business line of credit can be used to purchase inventory, as working capital, make payroll, buy equipment, refinance a loan or pay for other business expenses.
4. Short-Term Loans
Short-term loans are ideal if you are in need of funds to finance short-term needs. This type of loan can help you improve your cash flow management abilities, as well as take advantage of business opportunities that come your way, including unforeseen expenses. With a short-term business loan, lenders give you a lump sum of money up front, which you then are required to repay over a specified period of time which will include lender’s fees.
Lenders usually offer smaller loan amounts and shorter repayment terms for short-term loans. On top of that, lenders often require you to make daily payments rather than monthly payments.
Landscaping Loans Long Island
If you need more details regarding landscaping loans Long Island, the experts at SMB Compass can steer you in the right direction, as well as answer your questions. Our team of skilled and experienced professionals will assist you and advise you on the best course of action for you.
Remember, time is money and money is time.
Give us your time and we’ll help you get the money!