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Timothy R
By: timothy-ronaldson
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Landscaping Business Loans: Which One is Right for You?

If you own a landscaping business, you know how vital landscaping business loans can be to fund your business investments. From purchasing state-of-the-art equipment to hiring employees and marketing your services, you need to have access to capital to get your business off the ground and take it to new levels.

With the explosion of landscaping businesses across the country in the last five to 10 years, it is ever more critical to make sure that your landscaping business is appropriately capitalized.

If you don’t have the right equipment, it could limit how many customers you can take on. If you don’t have the right employees, it could dramatically affect the quality of your work. And if you don’t have a good marketing plan, it could be hard to find new customers.

In this article, you’ll find the top funding alternatives for your landscaping business.

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The TOP Landscaping Business Loans at a Glance

Loan amountInterest ratesFeesTime to payAccept ITIN?No-credit-history accepted?Time to fund
SBA loanUp to $5M7.5-10%Up to 3.5%Up to 10 years5-10 business days
Bank loanUp to $250,0005-10%Up to 5%1-25 years5-10 business days
Line of creditUp to $100,00010%N/AOngoing1-5 business days
Invoice financingTotal of outstanding invoicesN/A3% plus factor feeVariesDepends on the lender✔️1-5 days
Equipment financingPrice of equipment10%N/A1-5 years1-5 days
Camino Financial$5,000 to $400,000Starting at 12%5% origination fee24-60 months✔️✔️2-10 days

The Best Landscaping Business Loans

Because the landscaping industry is highly competitive, customers can easily find an alternative to your business if you don’t do a good job or are not reliable. As any business owner in the industry knows, though, all of those things take money. 

That’s why landscaping business loans have become so popular in recent years.

If you have a landscaping business, you’ll have plenty of choices for landscaping business loans. Here are the most common options.

1. SBA Loans

Through the Small Business Administration, some loan programs will be available to you. The government agency backs these loans through private lenders such as banks and other financial institutions. 

One of the most popular programs is the SBA 7(a) loan program. Through this, you can qualify for a landscaping business loan of up to $5 million. You can use this funding for just about any financial business need. 

The interest rate for these loans is set at prime plus a maximum markup of 4.75%. As of now, this means the interest rate could vary between 7.5% and 10%. The markup is set by the private lender you choose and their requirements regarding the total amount of your loan.

In addition to this, the lenders typically charge a 3.5% origination fee on the loan. They may also require a down payment of between 10-20%. 

Because it’s a government-backed loan, there are credit requirements in place. You have to have a minimum credit score of 680 to qualify for this landscaping business loan, as well as no bankruptcies or prior government loan defaults in your history. The SBA requires you to have a Social Security number to apply for a loan through them.

2. Bank Business Loan

Another option would be a traditional bank loan. These loans are available at several different financial institutions, including credit unions.

A bank might be the first place that business owners go to for a landscaping business loan, if only because it’s something they know about. The terms of these loans can vary significantly from one bank to the next.

Generally speaking, though, the interest rate on bank loans is between 5% and 10%. Most will have an origination fee, which can be up to 5% of the total loan amount. Most banks will extend landscaping business loans up to $250,000 and have repayment terms between one and 25 years.

Some of the downsides to a bank loan are that they usually have pretty strict requirements for who qualifies. They will definitely have a minimum credit score required, generally in the mid-to-high 600s. They also will want to see that you have been in business for a certain amount of time.

Banks typically don’t accept ITINs for landscaping business loans, and they often won’t extend credit to people with no credit history.

3. Line of Credit

Another option for landscaping business loans is to take a line of credit. This type of loan is much more akin to a cash advance on a credit card than a typical business loan. You will be approved for a certain amount of money, and then you can draw on that available credit any time you need it. 

You’ll only pay back what you draw down from the line of credit, not the total amount of credit extended to you.

This could be a good option for landscaping business loans because you can use the credit when you need it—much like a credit card. But unlike a business credit card, the interest rates on a business line of credit are often much lower. The interest rate will probably be closer to 10% than 20% or more of a credit card.

There usually aren’t fees associated with lines of credit. 

You will often receive a decision within 24 hours and have access to the credit almost instantly. How much you qualify for, and your interest rate will depend a lot on your credit score. In other words, most financial institutions won’t give a line of credit to people with no credit history. And you will definitely need an SSN to apply for this financing alternative. 

4. Invoice Financing

One of the biggest challenges of running a landscaping business is collecting what’s due to you. Most companies aren’t set up for automatic payments from clients. This can sometimes cause cashflow problems.

Another option to keep the money flowing in when you need is to turn to invoice financing. With this type of landscaping business loan, you’ll go to a private lender who will give you a loan based on your outstanding invoices. 

You’ll provide the lender with copies of your invoices, and the lender will typically lend you 85% of the value of that invoice upfront. 

Typically, these lenders will charge a 3% fee plus any other factor fee. This could be a good option if you need money, though you’ll be limited to whatever your outstanding invoices total.

Most lenders who offer this type of landscaping business loan won’t require a credit history or an SSN. 

5. Equipment Financing

If you need to buy new equipment, this type of landscaping business loan could be great for you. Like it sounds, these loans are explicitly taken to purchase a piece of equipment, such as a new industrial lawnmower. 

The way these loans work is that you provide an estimate of the cost of the equipment to the lender, and then they approve it based on that equipment being used as collateral. It’s sort of similar to a home mortgage in that regard. 

There are several excellent features of this type of landscaping business loan. First, they are often much cheaper than leasing equipment. Plus, you’ll own the equipment outright once you pay it off.  

Interest rates are usually around 10%.

Second, you often won’t need a great credit score for this type of loan, although you probably will need a credit history. Most financial institutions will require you to have an SSN to apply, though. 

Finally, you won’t have to put up any additional collateral to get the loan since the equipment you’re purchasing serves as the collateral.

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A Camino Financial Loan is a Great Alternative

Camino Financial has a lot of experience working with landscaping businesses. Our loans are a great alternative to the ones listed above. 

We know that you work hard to help your business thrive, so we make sure we offer you the smoothest lending process so you can worry about what matters to you: managing your business.

  • We offer financing between $10,000 and $400,000 that can be used for many business reasons.
  • We offer low-interest rates and fees and up to 60 months to pay them back. 
  • Our loans fund quickly, too. You can receive the money in 2 to 10 days.
  • We also know how difficult it can be to run a landscaping business, so we don’t require you to have a previous credit history
  • We also accept ITIN if you don’t have an SSN.

With Camino Financial loans, you can have more flexibility in payment options, the total amount available, and a quick time to fund. We are continually working to live up to our motto of “No Business Left Behind” by working hard for our clients, just like you.

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Get the Capital you Need

You’ll have a lot of options for getting a landscaping business loan. From SBA loans to traditional financing, there are positives and negatives of each.

Which one you choose depends on several factors: like your financing needs and what requirements you can meet. Many business owners feel like, because they don’t have a credit history, and most lenders have very stringent requirements, they won’t be able to get the capital they need to grow their business. But that’s farthest from the truth.

Fortunately, some lenders are willing to help small businesses by offering the capital they need when they need it. Camino Financial is one of them.

Why don’t you calculate how much a Camino Financial loan would cost you? That way, you can start planning how to grow your business!



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