Running a lawn care business requires skill and an eye for design, but it also takes money to run your company and maintain the services that you offer. Whether you need additional landscaping equipment, need to cover an unexpected shortfall in cash flow, or simply want to grow your business, a small business loan for lawn care may be your answer.
Many small businesses turn to traditional lenders like banks for funding but find that their stringent lending requirements or lack of sufficient cash flow prevents them from getting the financing they need. Others turn to credit cards, which can provide some short-term relief but are often riddled with high interest rates that make it difficult for business owners to repay their debt and keep their company afloat.
The first thing you should do before seeking out small business loans for lawn care is check with your local small business organization. Most cities and towns have a group that exists to support local small business owners and can help you navigate the different types of funding options that are available. These groups can be a wealth of information about the specific grants that are available, as well as helping you understand the qualifications and application process.
Aside from the various types of funding options that are available to you, there are also a number of tax considerations that you should take into account when looking for funding. For example, your company will need to pay both income and payroll taxes and it’s important to keep accurate records of your business expenses and revenues. This way, you’ll be able to claim any applicable IRS tax credits that you can benefit from.
Another key consideration is how you plan on using the funds to grow your company. This will give the lender a sense of your long-term goals and will allow them to determine if they’re willing to extend you a loan that supports those growth plans. In addition, it will be important to consider how you will handle the repayment of any financing you receive.
If you are looking for a lawn care business loan, then one option that is worth considering is invoice financing. This type of financing can give your landscaping company access to the money they need as soon as they have completed a job. An invoice financing company will advance your landscaping company about 85% of the outstanding invoice balance, and when your customers pay their bill, the remaining amount will be released to you, minus any fees that are charged for this service.
In terms of other forms of business financing, you should consider the SBA 7(a) and bank loans as both have low rates and lengthy repayment terms. However, the approval process for these types of financing is often lengthy and can be difficult for landscaping companies to qualify for due to their seasonality. If you are looking for a quick and easy financing solution, then alternative lenders should be considered as they can typically approve you in as little as one business day. small business loans for lawn care