When it comes to lawn care businesses, most require small business loans at one point or another to help survive the slow season. Professional landscaping requires so much more than determination and a single piece of equipment. Instead, you need top-notch equipment, some excellent marketing tactics, and dedicated staff to thrive. This can get expensive, and this is where lawn care business loans come in.

However, most of these loans are not straightforward. If your business is seasonal, this will impact your loan options. Also, what you want to finance will also affect what the amount you’re eligible to receive. The good news is, you have more than one option, this is what we'll discuss below.

Finding the Best Lawn Care Business Loans by Answering Three Questions

Before you start the search and application process for your loans, you want to ask yourself a few questions. Depending on your answers, you'll have a better idea of where to look for the best loan to suit your situation.

1. What do you want to finance?

The first thing you want to ask yourself is what you want to finance with your loan. Do you need working capital to pay your bills? Maybe you need cash to hire more staff or pay your current ones. Do you need to pay for marketing materials, or are you having cash flow issues?

2. How healthy is your cash flow?

Next, take a look at your business's cash flow. Are you having trouble keeping it consistent due to customer payments or sporadic jobs? Perhaps you have solid cash flow, but you don't have enough for emergency funding, or you're just starting out. Also, consider whether you have money coming into your business all year or seasonally.

3. How healthy is your business?

How long have you had your business? What is your revenue? When you apply for your new business loan, do you have others open? What are your credit scores and your business's credit score? These scores will affect your loan rates.

You want to sit down and answer all of these questions truthfully. When you decide what you want to finance, this can guide you to the correct loan. Your cash flow answers will be very important to any potential lenders because they use it to gauge whether or not you'll pay your loan back. Finally, the last question about your business's health will help decide which loans you'll qualify for.

starting your own small business online for lawn care

The Top Small Business Loans for Lawn Care

We're going to go over the most popular lawn care business loans, and you can see which one applies to your situation the best.

Best Loan for Cash Flow - Invoice Financing

Many lawn care businesses rely on cash, and this is great because you don't have to wait for checks. However, it can add a complicated layer to your finances if you have to wait for your customers to send payments.

Payroll and overhead depend on steady cash flow, and invoice financing can make sure you have all the money you need to pay your obligations. With this loan, you'll work with a lender who will give you around 85% of your outstanding invoices in advance. When your customers start to pay you, the invoicing company will release any excess funding, minus their fee. Universal Funding Company and Fundbox are two loan entities.

Best Loan for Upgrading Tools - Equipment Financing

Another common business loan is equipment financing. Buying the equipment, you need to complete your projects is one of the most expensive portions of owning a landscape company. No matter if you need smaller tools like shears or larger equipment like a professional mower or a shed to store your items, this financing can help.

You get a quote for whatever equipment you want to buy and take it to the lender. These are self-collateralized loans. So, whatever you buy becomes your loan's collateral if you default. As a bonus, you usually don't need an older business, an excellent credit score, or high revenue to secure this financing. However, you should buy equipment that has a long life. Lendingtree and Currency both have equipment financing loans with competitive rates.

Best Loan for Miscellaneous Expenses - Business Line of Credit

You can consider this loan a mix of a traditional loan and a cash advance on a business credit card. A lender will work with you for approval like a traditional loan, and they'll approve you for a set amount. You'll be able to draw money out until you reach your maximum approval amount.

Additionally, you only pay interest on the money you use, and not the total amount. These are revolving accounts, meaning they re-up when you pay them back. They can have maximum amounts up into the millions, and they offer lower interest rates. Street Shares will give you a line of credit up to 20% of your annual revenue, or Ondeck is another option.

Best Loan for Excellent Credit - SBA

Business owners who have excellent credit can apply for SBA loans for up to 85% of their annual revenue. These loans have more favorable terms than other options, and they give you lower interest rates with longer repayment periods. These loans are more difficult to get, and you'll need at least a 650 credit score. Your business has to be a few years old too.

They take time and a lot of paperwork to process, but most small banks offer them for their customers. The Small Business Administration will match you with lenders for this loan, or you can try any local bank.

Finding Small Business Loans for Lawn Care

It takes a huge amount of dedication to run a small lawn care business, especially if you're a seasonal operation. However, doing your research and picking out the best loan possible for your situation can help your company thrive all year round. We've given you four options you can compare side by side.

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