A successful landscaping business requires a lot of upfront capital. There’s equipment to buy, supplies for each job and a crew of skilled workers. Landscaping contractors must also spend money on advertising and marketing to reach new clients and keep existing ones coming back. A working capital loan can help landscape businesses pay for everything from pricy print advertising to billboards, social media campaigns or even hiring an outside firm to handle their marketing needs.
Unlike conventional loans, business lines of credit are revolving lending solutions that allow a borrower to draw on their approved credit limit as often as they want and make monthly payments based on what they’ve spent. This type of financing is an excellent option for landscape businesses that are growing and need a flexible way to finance their growth, as well as for those that are seasonal and have trouble generating enough cash flow during low seasons.
Like other small business loans, a line of credit is available from most financial institutions and banks. Depending on your lender, you may be required to have a certain credit score, a minimum amount of time in business or collateral to qualify for this type of loan. These requirements can make it difficult for small businesses to get approval, especially if they are seasonal or experience a drop in revenue during slow periods.
While you have visions of your landscape company staffed with experienced, reliable employees equipped with the best equipment to meet the needs of a burgeoning client base, those visions can be hard to translate into reality without sufficient funding. A short-term business loan can be the perfect solution, offering a fast application process and a variety of flexible terms to fit your specific business needs.
A common form of gap financing, invoice factoring is an excellent choice for landscape contractors that service commercial clients that tend to pay a little slower than other customers. By allowing you to sell your outstanding invoices at a discount, this type of financing can bridge the gap between when you receive payment from your client and when you’re able to invest those funds into your company.
With all of the financing options available, it can be difficult to understand which is right for your business. To help, Industry Funding has created an easy-to-use guide that shows you the pros and cons of different financing solutions so you can select the loan that’s right for you. landscaping business loans