Success in landscaping requires quality equipment and employees. However, both resources are challenging to obtain due to external factors like seasonality and increasing competition. Residents of busy areas have many landscaping companies to choose from, many of which might be looking to poach workers by promising higher hourly wages.
And since most people view landscaping as a luxury, the state of the general economy can directly impact demand. United Capital Source has access to small business loans for landscaping companies that wish to retain employees and secure equipment as cash flow fluctuates throughout the year.
Landscaping Business Loans are geared towards the cash flow cycles and capital expenditures of the landscaping industry. In addition to covering short-term needs and larger purchases, these business loans can bridge revenue gaps during slow periods or when projects get delayed.
There are nearly 622,000 landscaping and lawn maintenance businesses in the US. Landscaping business loans can help landscapers of all sizes meet challenges and continue to grow.
Landscaping Business Loans can come in the form of:
Each funding option listed above can suit a different type of expense or cash flow issue. We can work with you to find the best loan program for your specific challenge in the landscaping and lawn care industry.
For example, one of the biggest challenges of landscaping businesses is seasonality. During the slow season, landscaping businesses often experience cash flow problems.
Demand drops when temperatures do the same. But once the weather changes, landscaping businesses must recruit workers and secure equipment to prepare for the busy season. Landscaping Business Loans can provide the means to acquire both resources in the weeks (or even months) beforehand. Companies can prepare for peak seasons by planning budgets and managing cash flow during slower months.
Logical solutions for this common dilemma include short-term working capital loans and a business line of credit. Working Capital Loans are typically best for keeping the business running during slower months since the borrowing amount is directly based on monthly bills. On the other hand, a Business Line of Credit makes more sense when the slow season comes to a close. Interest rates are lower when you can pay off the full balance quickly. You only pay interest on the funds you use with a business line of credit.
Both options can also cover unforeseen expenses for large projects (i.e., extra supplies) or payroll when projects get delayed. If either situation is prevalent for your business, a Business Line of Credit will prevent you from having to apply for more funding every time they occur.
Maybe you’re in the middle of a project and need cash now, but your customer isn’t scheduled to pay for several weeks. In this case, you might consider accounts receivable factoring. The business loan provider purchases the account for a discount and then assumes the responsibility of collecting from your customer. Once the payment is collected, you receive the remainder from the initial sale, minus fees. You can also decide if you want all the money up front or a little bit at a time.
A merchant cash advance could be viable if you accept credit or debit card payments. Merchant cash advances provide a lump sum of working capital in exchange for a percentage of daily credit card sales.
Established landscaping or lawn care business owners with excellent credit might consider SBA loans for larger projects and financing needs. The Small Business Administration partially guarantees these loans.
SBA 7(a) loans can help landscaping businesses meet challenges like increased demand and operational costs. SBA 7(a) loans can be used to buy, expand, or refinance debt on a landscaping business. SBA financing options can be variable or fixed-rate loans. The maximum loan amount for SBA loans is $5 million. SBA loans also offer extended repayment terms.
SBA loans are not granted by the SBA but are approved by partnering commercial lenders and guaranteed by the SBA. The application process for SBA loans is intensive with strict approval requirements. Most landscaping business loan applications require a detailed business plan or purpose statement.
Businesses must have strong credit scores and provide detailed financial documentation to be eligible for an SBA 7(a) loan. SBA loans can take a lot of time and paperwork to process, and approval is not guaranteed. There are also SBA Express Loans for more urgent financing needs.
| LOAN TYPES | MAX AMOUNTS | RATES | SPEED |
|---|---|---|---|
| Merchant Cash Advances | $7.5k – $1m | Starting at 1-6% p/mo | 1-2 business days |
| SBA Loan | $50k-$10m | Starting at Prime + 2.75% | 8-12 weeks |
| Business Term Loan | $10k to $5m | Starting at 1-4% p/mo | 1-3 business days |
| Business Line of Credit | $1k to $250k | Starting at 1% p/mo | 1-3 business days |
| Receivables/Invoice Financing | $10k-$10m | Starting at 1% p/mo | 1-2 weeks |
| Equipment Financing | Up to $5m per piece | Starting at 3.5% (SBA) | 3-10+ business days |
| Revenue Based Business Loans | $10K – $5m | Starting at 1-6% p/mo | 1-2 business days |
Landscaping Business Loans can help landscaping businesses overcome several industry-wide challenges. At the very top of that list is employee retention. Landscaping businesses struggle to retain employees because of the industry’s seasonal nature and the fact that they don’t get paid for projects until they are finished. If landscaping businesses had easy access to more funding, they could give employees the stable payment structure they are looking for.
Another major challenge for landscaping businesses is the rising cost of equipment. Tools for the landscaping industry are continually evolving, and a new piece of equipment could accomplish the same amount of work as multiple people for a significantly lower price. Landscaping Business Loans allow landscaping businesses to secure new equipment amid financial obstacles like seasonality or other mounting expenses.
Regarding stability, landscaping businesses grow and retain employees by capitalizing on the demand. Landscaping Business Loans ensure you always have another project lined up during busy periods. You can continue taking on projects despite requiring more resources, like additional workers or supplies.
Lastly, established landscaping businesses deal with competitors looking to undercut their prices. The only way to prove your business’s worth is through high-quality work. Landscaping Business Loans can fill whatever void prevents you from making this happen, whether it’s insufficiently experienced workers, not enough workers, outdated equipment, etc.
Taking out a business loan is always risky in highly competitive industries. All the workers and equipment in the world won’t matter if you struggle to find work. Sometimes, lower prices are all your longtime customers need to hear to start using new services. Even worse, your competitors could steal your new workers from you by offering higher wages or better health benefits.
It’s challenging to determine how much to borrow with many potential expenses. You might not know precisely how many workers you’ll need or how much supplies to order until the project starts. Borrowing too little could prevent you from covering sudden expenses and completing the project on time, whereas borrowing too much could give you more debt than you can afford to pay back.
It also doesn’t help that, due to today’s increasingly unpredictable weather, the parameters of slow and busy periods aren’t exactly clear. How long will you need your new batch of workers? When will the slow season begin? The landscaping industry’s various uncertainties can make choosing the wrong borrowing amount or repayment structure easy.
Pros:
Helps retain employees by providing stable pay during seasonal lulls
Allows purchase of new equipment to improve efficiency and reduce labor needs
Supports business growth during busy periods by funding extra labor and materials
Maintains a steady flow of projects by providing cash when needed
Helps stay competitive by enabling high-quality work and upgrades
Cons:
Risky in competitive markets where demand may not cover loan costs
Difficult to predict exact borrowing needs, leading to over- or under-borrowing
Unpredictable weather and seasonal shifts can disrupt repayment plans
Competitors may lure away trained workers with better pay or benefits
The amount of paperwork required for the application depends on your chosen product. Funds can be approved and distributed for most products in up to three business days. Here’s how to apply:
The first step is choosing the most sensible solution to the problem at hand. This should require some research, as each product is designed for different types of expenses and cash flow cycles. Are you looking to cover a short-term or long-term cost? What is the project’s billing schedule?
Considering the funds’ purpose will also help us determine the correct borrowing and terms for your needs.
Here are the documents and information required for all Landscaping Business Loans:
Driver’s license
Voided business check
Bank statements from the past three months
Invoice for equipment (for Equipment Financing)
Credit card processing statements from the past three months (for Merchant Cash Advance)
Accounts Receivable Aging Report (for Accounts Receivable Factoring)
Accounts Receivable (for Accounts Receivable Factoring)
Debt Schedule (for Accounts Receivable Factoring)
SBA Loans require additional documents and information. Visit our SBA loan page to learn what’s needed for the application.
You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to enter the information from the previous section along with your desired funding amount.
Once you apply, a representative will contact you to explain the repayment structure, rates, and terms of your available options. This way, you won’t have to worry about any surprises or hidden fees during repayment.
Approval can happen within 24 hours, and funding can occur shortly after that. However, it usually takes 3-5 weeks for SBA Loans to receive approval.
Your business loan isn’t just a way to get financing for your business. It’s also an excellent opportunity to start building (or improving) your credit.
Regardless of the type of business loan you get, make all your required payments on time and in full. If you get a business credit line or another form of revolving credit, keep your balance below the credit limit.
Consistently making your business financing payments on time and in full will positively impact your credit. And that means preferred rates and terms when you next need business financing.
If your application is declined, you might have applied for the wrong product for your cash flow. In this case, we would likely recommend a different product with a less intensive repayment structure.
Your application might also be declined after it is determined that you cannot afford to take on more debt at this time. Your needs and financial circumstances might be better suited for another financing tool, like a business credit card or a personal loan.
If your credit score prevents you from financing, you should consider searching for reputable credit repair services.
At United Capital Source, we finance equipment valued at up to $5 million per piece. Landscaping equipment can include small tools like shears or larger machinery like mowers. Many lenders offer fast approval for equipment financing, sometimes in as little as 4 hours.
Thus, some examples of landscaping and lawn care equipment we can finance include:
Lawnmowers
Utility trailers
Vehicles (flatbed trucks)
Snow removal equipment
If you’re considering Equipment Financing, the equipment’s lifetime value should be more important than the actual price. We usually don’t recommend financing equipment that will likely become outdated or irrelevant in under three years. In this case, leasing would probably make more financial sense than buying.
This depends on where you apply and the product you have in mind. If you’re looking for a bank loan, you’ll need excellent credit, perfect cash flow, collateral, plenty of money in the bank, high annual revenue, and at least two years in business. Due to seasonality and cash flow issues, landscaping businesses are considered high-risk applicants for loans. Credit unions might be more lenient, but they offer lower borrowing amounts.
Many landscaping businesses do not meet the strict criteria of traditional lenders for conventional financing. A detailed business plan is crucial when applying for financing as it outlines how you intend to use the funds. Bank loans may not be as low as SBA loans and can be difficult to acquire due to perceived risk. Traditional lenders also take longer to have funds deposited into your business bank account.
For businesses that need smaller loans or fast funding, alternative lending options are available besides SBA loans. Alternative landscaping business loans typically have faster application processes than SBA or bank loans. Alternative lenders can approve landscaping business loans faster than traditional lenders, often within one business day.
Products from companies like United Capital Source are much more accessible. Your ability to meet the abovementioned requirements will determine your borrowing amount, rates, and terms. But falling short in any (or more than one) of these areas won’t stop you from qualifying for multiple products. With some products, your credit score is practically irrelevant. For example, eligibility for a merchant cash advance is based entirely on the size and volume of your debit and credit card sales. With Accounts Receivable Factoring, approval is based on your customer’s ability to repay instead of your own.
Most business loans are only available to existing businesses. Starting a landscaping business can cost between $15,000-$50,000 or more. Some lenders may consider financing new lawn care and gardening companies, but you’ll typically have to use your money to launch your operation.
Fortunately, some financing options are available to companies with only 4-6 months in business. Landscaping Business Loans can be used for a myriad of business goals. This includes:
Yes, six of the seven products mentioned above are accessible for borrowers with bad credit. Your rates may be higher, and your terms may be shorter because bad credit makes you more likely to default. However, if you have strong cash flow or can provide collateral, your bad credit may impact your rates and terms less. We can customize your terms and payment frequency to ensure you can make payments while staying current on other bills.
The only option that is not accessible with bad credit is SBA loans. Compared to the other products, SBA Loans carry higher borrowing limits, lower rates, and longer terms. If you have bad credit, you’ll be assigned shorter terms to ensure you repay the loan in full.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
UCS will never communicate with a prospective client on Facebook, Facebook Messenger, or any other type of social media. Further, any email communications will always come from an official UCS email address and not a Gmail, Yahoo, or other email domain. If you believe you have been contacted by someone posing as an employee of UCS, please email [email protected].
