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
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
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