Starting a new lawn care business requires significant capital. Even if you already own a truck and trailer, you still need to purchase or lease a lawn mower, landscaping tools, weed eaters, leaf blowers, rakes, shovels, gloves, and a shed to store all of these items. Depending on the size of your operation, these lawn care business supplies can add up quickly. That is why it is important to do your research and find the best lawn care business loans that meet your specific needs.
A small business loan is typically considered the most accessible form of financing. However, it does have a number of requirements, including minimum credit scores and revenue thresholds. Additionally, lenders may require collateral or a down payment in order to approve this type of financing. If you are not interested in pledging any of your business assets, it is worth considering alternative forms of financing such as an invoice financing.
Invoice financing is a type of financing that allows you to advance funds based on your outstanding customer payments. This can be a great way to stave off cash flow problems, especially during seasonal downturns when your clients are slowing down their spending. With this type of financing, you will work with a lender who will advance you around 85% of your outstanding invoices, and once your customers pay their bills, the lender will release the remaining funds to you, minus any fees that have been charged by the lending company.
Grants are another type of financing that is often available to lawn care companies. These grants can be awarded by local, state, and federal governments in order to reward businesses that contribute to the economy or local job creation. For example, there are many grants that are specifically designed for young entrepreneurs who have just started their own small businesses. In addition, there are also grants that are specifically designed for business owners who use green practices and environmentally friendly products and equipment.
It is important to note that these types of financing options are not available through traditional banking sources. This is because banks are often reluctant to offer funding to lawn care companies due to the industry’s seasonality and frequent cash flow gaps. Luckily, there are several lending platforms that have emerged to help overcome this issue by providing lawn care business loans with flexible terms and simple applications.
In addition, some of these lending platforms can provide you with the funding that you need to register your business, which is an essential step in establishing your lawn care business as a legal entity. It is worth exploring these different forms of financing, as they can help you to avoid some of the most common financing mistakes that are made by new lawn care businesses. For this reason, it is imperative that you seek out the most reputable lending platforms in the market. This includes Crestmont Capital, which offers a wide range of startup and business loan options for lawn care companies.