Business Loans for Landscapers and Lawn Care Companies
Landscapers often take on big projects, which require lots of money to be laid out. This means before you get paid, you’ve already spent money on workers, equipment, and many other business expenses like insurance etc, in order to finish a project by the required date. You don’t get paid until that date. If you don’t complete the project you don’t get paid at all. It’s that simple. The expenses are so high that it compromises your ability to pay your workers, and make basic expenses like equipment costs etc. Most landscaping companies have very little time, and are seasonal, so it’s hard if they underestimate the cost of a project. Some companies might end up taking losses by spending more money than they are paid.
In some cases, landscapers don’t take a project because they simply don’t have the money. Landscaping is a seasonal business, and if you don’t have the money available – you won’t be able to pay your bills and make money. It’s clear that when this happens, the only choice you have is to take a small business loan. There’s a lot of different small business loans out there, and it’s our job to help you find the right one. Delancey Street has many years of experience providing small business loans for landscaping companies. We can handle ALL TYPES of loans. Contact us for a risk free business funding consultation today.
Delancey Street knows all the different possible business loans out there, and can help you cover your massive business operation costs. You can use the small business loan we get you to pay for payroll, business expenses of all sorts. Many landscaping companies need small business loans because of cash flow problems. Companies often don’t have enough time to gather the money needed for resources and projects. This compromises your ability to take on work. But, if you take a short term working capital loan, landscapers can begin working on projects and take on more projects. For example, if you need a new piece of equipment – you can buy it using a landscaping small business loans. In addition, with more money thanks to the loan – you can hire more workers to help you. In the event of a slow season, the small business loan we give you can help pay for monthly expenses, or new marketing campaigns. Bottom line, with a landscaping small business loan, you’ll never have to say “no” to a big project, or be unable to make your expenses.
Another great thing we can help you with, is accounts receivable factoring, in order to cover your expenses. Many landscapers get paid little, to nothing, for weeks and months. With accounts receivable factoring from Delancey Street, we can get you paid in just a few days. This is great for long projects, where you might not get paid for several months, but in the meanwhile need to pay suppliers. Since large projects have numerous phases, we can give you funding for each phase, and help support you. Having more money in your pocket thanks to a small business loan from Delancey Street will help you expand, and pay for sudden expenses that arise.
Take A Good Hard Look At Your Credit
Before you do anything else related to applying for a loan or even deciding which one you want, you need to know what you have credit-wise. Your credit score is just a number that reflects how you’ve been maintaining your current debt or if you’ve been paying your bills on time, but your credit report is a complete record of that. What you should do first is get a copy of your business’s credit report and see if it’s accurate. If it has errors on it, getting those removed could boost your credit score. If your credit isn’t looking good, you should start making changes at your business to fix it. If it is good, you’ll have a lot more loan options available. But whether it’s good or bad, or even if you have little or no business credit history, you need to go over it before this next step.
Choose A Secured Or Unsecured Business Loan
There are all kinds of business loans out there, some of which are backed by the SBA, and others which are independently issued by the banks. But essentially they all fall into the category of secured or unsecured loans, and each has their own advantage. Here’s what you can expect with secured loans:
1. Secured loans use your assets or other property as collateral by pledging to the lender that if you don’t repay the loan, they can seize those assets
2. Because those assets are able to guarantee the lender payment of their loan, they usually will approve the loan for those with lower credit
3. Secured loans usually have longer terms and lower interest rates
Unsecured loans are a bit different:
1. Unsecured loans are made without collateral and are simply backed by your
signature agreeing to repay them
2. Since these loans are riskier for the lender, your credit score will usually be a much bigger factor in whether or not you’re approved, and they’ll usually need to see other financial information as well
3. Unsecured loans usually have shorter terms and a little higher interest rates
Either kind of loan could positively or negatively impact your credit score depending on whether you make your payments on time. And while some loans are easier to get approved for than others, it’s still wise to make sure you’ve prepared your business and loan plan.
Get Your Documents Ready
If you’re unsure what you’ll need to do to convince the bank or other lender to approve you for a loan, a professional accountant or consultant can usually give you advice. But basically you need to find your financial statements from your business bank account, have your tax payment documents handy, show payroll information and expenses you’ve had in the last year, have information about your business insurance and the property it operates from and other documents that show that it’s managed to pay it’s bills. They also usually want a well-written document explaining what you’re going to use the loan for. Banks don’t always want to know what your projected earnings are, but they do usually want to get a sense that your business is moving in the right direction.
Some loans have quick approved times while others will require you to wait a little while to get your assets appraised or to do a thorough credit check. But usually once you sign your loan contract, the funds will be on their way. Just make sure you understand all your usage terms and repayment obligations before you sign anything.