Running a lawn care business is expensive. There are tools to purchase, equipment to maintain and supplies like tarps, mulch, sod, soil, compost and masonry that are necessary for projects. If you don’t have the cash on hand, securing a small business loan for landscaping is a good option. With numerous financing options, you need to determine what type of lending you’re looking for and what your specific goals are. Landscaping loans are a great source of capital to help cover day-to-day operating expenses or even expand your company, depending on your needs and the scope of the work at hand.

Choosing the right financing solution is essential to ensure that you have the cash flow to support your daily operations and meet your short-term and long-term financial goals. Whether you’re looking for a traditional term loan, an SBA-backed 7(a) loan or something more alternative such as invoice financing, it’s important to understand the requirements of each type of funding so that you know which one will work best for your business.

For most landscapers, acquiring the necessary equipment for each job is a major expense that may require a large amount of working capital to obtain and maintain. Having the right tool for the job is crucial to completing the work efficiently and getting the best possible ROI. Invoice financing is an alternative form of funding that allows you to borrow against unpaid invoices, allowing you to pay back the balance once those invoices are paid. It is also a quick and easy financing option that typically does not require a credit check or collateral.

Another common type of landscaping business financing is the merchant cash advance (MCA). This form of funding gives you a lump sum of working capital upfront in exchange for a percentage of your credit and debit card sales each month until it’s fully paid. This is an ideal financing solution for landscapers who have a seasonal income and need access to funds quickly. It’s also a more flexible form of financing than a term loan, and can be approved much faster, sometimes within one business day, than SBA and bank loans. You’ll need to have a minimum of two years of business operations and have a good credit score to be eligible for this type of funding.

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