There’s a lot of work to be done when it comes to lawn care, but it’s hard to get started without a significant amount of cash on hand. The good news is that business financing options are available for small businesses like lawn care services to help them thrive and reach their full potential.
In the past, most people seeking funding for a small lawn service company turned to traditional lenders like banks. But the credit requirements that these institutions put on their loans can be prohibitive to many who are attempting to grow their business. Moreover, using credit cards for business purposes can lead to a buildup of debt that may be difficult to repay.
Small Business Loans for Lawn Care
While you’re getting your lawn care business up and running, you need to make sure that you have enough cash to cover the recurring costs like labor and equipment rentals. Additionally, you’ll need money to pay for one-off expenses, especially if your business is seasonal. You can obtain a small business loan for the lawn care industry to cover these types of expenses, as well as to make investments in new equipment and hire workers.
You also need to register your business so that you have a legal entity and can comply with local laws regarding taxes. This step is also important because it can prevent you from being held personally liable for any debts the business incurs. It’s best to consult with a lawyer about how to register your business so that you can avoid any headaches down the road.
The definition of a small business is different for every industry, but a common measure is the number of employees and annual revenue. In general, a small business is any corporation, partnership or sole proprietorship that has less than 1,500 employees and annual revenues of $38.5 million or lower.
Once you’ve figured out your financing needs, you can start looking for the right loan for you. Some types of business loans include startup business loans, lines of credit and unsecured loans. Startup business loans are designed to provide a lump sum that can be used to fund your startup costs, including buying equipment and paying for advertising.
Alternatively, you could consider a line of credit that allows you to withdraw funds as you need them. This type of financing is particularly helpful for lawn care and landscaping companies because it can be used to cover payroll on a busy month, purchase new equipment after a break-down or finance a marketing campaign.
There are other business loans that are specifically geared toward the lawn care and landscaping industries, such as equipment financing or venture capital. You can also pursue grants that are intended to support a particular demographic, such as female entrepreneurs or job creation. These aren’t as common as loans, but they can be a great way to fund your lawn care or landscaping business. When pursuing these financing options, be sure to read all the terms and conditions thoroughly to understand how each type of financing works. small business loans for lawn care