Starting a lawn care business requires time, resources and know-how. If you’re also short on capital, however, that can be a significant obstacle to getting your business off the ground. Fortunately, there are a number of startup business loans for lawn care service businesses that can help.
While some entrepreneurs turn to credit cards or asking friends and family for funding, these options carry significant risks. Credit cards are typically only available to those with good credit and can have high interest rates that quickly drive up debt, and if your personal assets are tied to the company’s financial situation, you could face significant legal risks if the business is sued. Furthermore, asking friends and family for funds leaves you at risk of having those relationships damaged if the company faces any financial problems.
Startup costs for a lawn care business can be substantial, particularly for those who must purchase their own equipment. A single truck and an equipment trailer, for example, can cost in the thousands of dollars. For those who want to keep their costs low, there are a number of startup loans for lawn care companies that can provide the necessary capital, often with more flexible repayment terms than those offered by traditional lenders.
Depending on the nature of your business, you may have other financing needs, as well. For instance, some municipalities offer grants specifically for local small businesses. You may also be able to find grant programs that focus on specific types of improvements, such as renovations or technology upgrades.
As you consider the various options for financing your lawn care business, it’s important to answer all of the questions accurately and honestly. Your answers will be used by lenders to gauge your ability to pay back the loan, and they’ll play a role in what types of loans you might qualify for.
Invoice financing can be a great option for lawn care business owners who rely on recurring payments from their clients. With this type of small business loan, a lender will advance you about 85% of your outstanding invoices, and you’ll repay the remaining balance plus fees, usually around 3% of the outstanding amount, over a set period of months.
It’s important to understand that lawn care is a seasonal business, and this is something that should be taken into account when applying for small business financing. Lenders will want to see that your company has a strong earning history, and this is more difficult if your business’s revenue patterns are cyclical. This is why you’ll want to apply for a landscaping business loan during your highest earnings months. In addition, you’ll also want to present your company’s financial health in the best light possible to ensure that you qualify for the most favorable loans. Ultimately, finding the right startup business loans for lawn care services can help you take your business to the next level. lawn care business loans