What are Landscaping and Lawn Care Business Loans?
Your landscaping business relies on the tools and equipment that get the job done. When you take out an equipment loan, the equipment acts as collateral. If your business defaults, the lender takes the asset to cover the costs.
Since the collateral is built into the loan, lenders will give you more money with competitive rates and longer repayment terms. Additionally, you want equipment with a long lifespan so it continues to provide value beyond the loan term.
Traditional Lenders
Traditional lenders, such as banks and credit unions, typically offer the lowest rates for equipment financing. However, they have the most stringent qualifications. You’ll normally need excellent credit, high annual revenue, and several years of business history to be eligible for traditional financing.
Alternative Lenders
Alternative and online lenders often have much more lenient qualifications and provide fast funding with quick and easy applications. The tradeoff is that alternative business financing solutions often have higher interest rates and shorter repayment terms.
Equipment Manufacturers & Dealers
Landscaping and lawn care equipment manufacturers and dealers may also offer in-house financing solutions. They’ll typically partner with an outside financial institution to offer customer financing.
How does Landscaping Equipment Financing work?
Landscaping equipment financing enables lawn care businesses to acquire or lease high-cost tools and machinery without requiring a full upfront payment. Instead, a lender provides the funds to purchase the equipment, and the business repays the loan over time through a payment plan that fits their budget.
This type of financing is designed to help you acquire the equipment you need, from commercial mowers and utility trailers to skid steers and brush cutters, enabling you to take on more clients, operate more efficiently, and ultimately expand your landscaping business with a loan.
Here’s how it typically works:
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Choose Your Equipment: Identify the landscaping tools or machinery that align with your specific needs, whether it’s upgrading existing gear or scaling up operations.
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Apply for Financing: Submit a streamlined application, which usually requires documentation like your equipment quote, business bank statements, and a voided check.
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Get Approved: Most lenders require a minimum credit score between 550 and 600 for financing. If you meet the credit and revenue requirements, you can receive approval quickly, often in under 24 hours.
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Receive Your Equipment: Once approved, the lender pays the equipment vendor directly. You can begin using the machinery right away to generate revenue and grow your landscaping business.
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Repay Over Time: You repay the loan through fixed monthly payments, usually over 1 to 6 years. These terms make budgeting easier, allowing the equipment to pay for itself as you work.
Equipment Financing Through United Capital Source
Qualified landscaping and lawn care businesses that apply through United Capital Source can typically access:
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✅ Up to $5 million per piece of equipment
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✅ Interest rates starting at 3.5%
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✅ Repayment terms of 1–6 years
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✅ Funding in 3–10 business days
Whether you’re a solo operator or managing multiple crews, equipment financing helps ensure your team is well-equipped to handle growing demand without draining your cash flow.
What are the qualifications for Landscaping Equipment Financing?
Approved businesses we work with here at United Capital Source typically meet the following minimum qualifications:
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A minimum credit score of 600.
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At least 1 year in business.
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Annual revenue of $250,000 or more.
What are the benefits of Landscaping & Lawn Care Equipment Financing?
Landscaping and lawn care equipment financing offers fast access to funds with a simple approval process and doesn’t require excellent credit. You can borrow up to 100% of the equipment’s value, and since the equipment serves as collateral, it’s easier to qualify. It may also provide tax advantages through Section 179 deductions, reducing what you owe in taxes.
What are the drawbacks of Landscaping & Lawn Care Equipment Financing?
The drawbacks of landscaping and lawn care equipment financing include the risk that the equipment may become outdated or break down before the loan is fully repaid. Depreciation can reduce its resale value, and some lenders may charge prepayment penalties if you pay off the loan early. Additionally, you’re responsible for maintenance and repairs, and monthly payments are required regardless of seasonal slowdowns, which can impact cash flow during off-peak periods.
Landscaping Equipment Financing Pros & Cons
Pros:
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Easy approval process & fast funding.
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Potential tax savings with Section 179 Deductions.
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Doesn’t require an excellent credit score.
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The landscaping equipment is the collateral.
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Borrow up to 100% of the market value.
Cons:
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It might be obsolete before the loan is repaid.
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Depreciation of the value of the asset.
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Possible prepayment penalty.
How to Apply for a Landscaping Equipment Loan:
You can apply for landscaping equipment financing credit approval through our lender network by following these steps:
Step 1 – Apply online in a few minutes: Use our simple online application to submit a request for business funding. If you need any assistance along the way, please don’t hesitate to contact us by phone, chat, or email.
Step 2 – Get expert advice on loan options: An expert, knowledgeable account executive will walk you through all the fine details and requirements. This is to ensure you have all the info you need.
Step 3 – Finalize your application and get funded: Once your funding has been approved and disbursed, the lender sends the funds to your account, allowing you to start using them to grow your business.
Frequently Asked Questions
Here are the most frequently asked questions we receive about landscaping equipment financing.
What Landscaping Equipment can I buy with Financing?
One of the advantages of an equipment loan is that landscaping businesses can use it to purchase a wide range of equipment.
Examples include:
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Landscape trucks.
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Lawn aerators.
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Compactors.
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Sod cutters and lawn dethatchers.
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Commercial mowers.
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Commercial edgers.
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Sheds to store your gear.
Is it better to Finance or Lease Landscaping Equipment?
When deciding between financing and leasing landscaping equipment, it’s essential to consider your business’s specific needs, cash flow, and long-term goals. Both options have distinct advantages and potential drawbacks.
Landscaping Equipment Leasing vs Financing
|
Aspect |
Financing |
Leasing |
|---|---|---|
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Ownership |
You own the equipment once all payments have been made. |
You don’t own the equipment; it’s returned or purchased at lease end. |
|
Upfront Costs |
May require a down payment. |
Leasing allows you to start using equipment immediately without a large upfront payment. |
|
Monthly Payments |
Typically higher, but build equity. |
Often lower, aiding cash flow management. |
|
Maintenance & Repairs |
Your responsibility. |
The leasing company may cover it. |
|
Flexibility |
Less flexible; you’re committed to the equipment. |
High flexibility; easily upgrade to newer models. |
|
Tax Benefits |
Depreciation and interest may be deductible. |
Lease payments can often be fully deducted as business expenses. |
|
Ideal For |
Long-term use and building asset equity. |
Short-term needs or rapidly evolving equipment technology. |
Considerations for Landscaping and Lawn Care Businesses
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Financing: Opting to finance is beneficial if you plan to use the equipment for an extended period and want to build equity. It’s suitable for essential tools like mowers or trucks that have a long service life.
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Leasing: Choosing to lease landscaping equipment is advantageous if you prefer lower monthly payments and the flexibility to upgrade equipment regularly. It’s ideal for businesses that need to adapt quickly to new technologies or experience seasonal fluctuations in demand.
Ultimately, the decision between financing and leasing landscape equipment should align with your business’s operational needs, financial situation, and growth plans.
Can I Finance Landscaping Equipment with bad credit?
Since equipment loans include the asset as collateral, lenders are typically more willing to work with borrowers with bad credit. While you may still be able to obtain a small business loan with bad credit, borrowing with a poor credit history could result in higher rates and fees to offset the increased risk for lenders.
Landscaping Equipment Financing – Final Thoughts
An equipment business loan can provide landscaping companies with the tools and machines they need to grow their business. When applying, you must ensure the financing program works for your needs. Your monthly payments will run year-round, so if seasonality impacts your business, you’ll need a strategy to make the payments during slow seasons.
You built your business with a green thumb, dedication to your customers, and determination. Now it’s time to add more staff, new customers, and new business. Our loan experts understand your determination and industry. Reach out or apply for a business loan today to see your loan options.
