Landscaping Business Loans

What is a landscaping business loan?

A landscaping business loan is any kind of business loan that you use to fund your landscaping business. There aren’t dedicated landscaping business loans, so it’s up to you to do your research into the different types of business loans to find the one that’s right for your business. Fortunately, we’ve done much of the research for you here.

Where to find small business lawn care loans

PNC Bank

✔ Funding: Borrow up to $100,000
✔ Minimum Credit Score: 720
✔ Best For: Bank business line of credit & loans
✔ Funding turnaround: as fast as same business day

With PNC Bank, borrowers can obtain a line of credit with impressive interest rates and get funded as fast as same business day. Best for borrowers with high credit scores who can provide a personal guarantee.

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SBA 7(a) loan

✔ Funding: Borrow up to $5,000,000
✔ Minimum Credit Score: 650
✔ Best For: SBA loans
✔ Funding turnaround: Varies.

The SBA 7(a) program features lenders such as Wells Fargo in their network and provides capped interest rates and long repayment term flexibility. Term loans and lines of credit access available. Typically, collateral will be required with a personal guarantee. Funding times vary and may be longer than most other lenders.

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Credibility Capital

✔ Funding: Borrow up to $500,000
✔ Minimum Credit Score: 650
✔ Best For: Term loans
✔ Funding turnaround: Varies.

With Credibility Capital, borrowers with strong credit can obtain small business loans with attractive rates. A personal guarantee along with a business lien and revenue may be required to qualify. Note: This lender provides funding for all states except for North Dakota, Nevada, South Dakota, Vermont.

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BlueVine

✔ Funding: Borrow $5,000 - $250,000
✔ Minimum Credit Score: 600
✔ Loan term: 6-12 months
✔ Funding turnaround: 24-48 hours

With BlueVine, borrowers can get approval as fast as 24 hours and obtain a business line of credit for short term capital needs while only paying interest on the funds you borrow.

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How do landscaping business loans work?

In most cases, you’ll apply to a lender (after comparing rates and ensuring you meet their qualification requirements) and once approved, will receive a lump sum in your bank account. This lump sum must be paid back (plus interest) over a short, medium, or long term, which can be anywhere from a few months to 10 years.

Why do you need a landscaping business loan?

Landscaping and lawn care businesses can be costly to run, so you may need a loan for:

• Purchasing vehicles
• Buying lawn care and landscaping supplies
• Hiring and paying employees
• Paying for professional services
• Tools and equipment
• Marketing
• Insurance

What can you use a landscaping business loan for?

You can use a landscaping business loan to purchase:

• Commercial lawn mowers
• Trailers for transporting lawn care equipment
• Ride-on mowers
• Push mowers
• String trimmers
• Edgers
• Drop spreaders
• Power blowers
• Safety equipment
• Uniforms
• Commercial snow blowers
• Tree care equipment
• Compactors
• Chippers
• Trucks and vans
• Chainsaws

Types of Landscaping Business Financing Options

• Term loans: Term loans are usually offered by online lenders, though they are the same type of loan as bank loans and SBA loans, which we’ll cover shortly. This is where you borrow a lump sum and pay it back, plus interest, over a short, medium, or long term. Short term loans can be for as little as a few months while long term loans can be for up to 10 years on average.
• Business line of credit: This works much like a credit card, where a lender agrees to give you a maximum credit limit which you can borrow up to. You can then use as much or as little credit as you need, only paying interest on what you’ve actually used. When you pay it back, you can usually reuse that credit at a later date.
• Business credit card: this works as above, but is useful if you often find yourself making card payments, such as going to buy lawn care supplies or paying for fuel for your vehicles.
• Equipment financing: this is a good option if you need to buy expensive lawn care equipment. This works like a term loan, but the loan is secured against the equipment, which usually makes them easier to get. You usually need to pay a down payment of 10-20% of the overall cost. If you default on your payments, the lender will seize the equipment to recoup their losses.
• Bank loan: A bank loan is usually a term loan; the difference is that bank loans are generally difficult to secure. That said, if you meet their qualification requirements you can get some of the lowest rates available (2-5%).
• SBA loans: These loans are also usually term loans, but they are guaranteed by The Small Business Administration, so lenders are often more willing to lend money, lend larger sums, and offer better interest rates (2.89 – 13%). The SBA offers several loan programs: the popular 7(a) program, 504 loans, and Microloans. Their 7(a) loans and microloan loans are likely to be most suitable for a lawn care business.