Getting through the slow season
Landscaping slows in winter, and HVAC in the mild months between heating and cooling. Payroll, insurance and truck payments do not. A line of credit set up before the slow months, drawn as needed and repaid when the work returns, is the least expensive way through. Applying in the busy season, when deposits are strongest, usually means a larger line.
Trucks, vans and equipment
Work trucks, vans, trailers, mowers and excavators are financed against their own value, commonly over three to six years. The upfit, the shelving, racks or a lift gate, can often be financed with the vehicle.
Growing
Adding crews, opening a second territory or buying a smaller competitor needs money before the new revenue arrives. A term loan or an SBA loan fits these better than short-term working capital, because the payment is spread over the years the growth pays for itself.
Commercial work
Commercial clients often pay in 30 to 60 days, unlike homeowners. A company taking on more commercial work can finance those receivables, or use a line of credit, so that the larger jobs do not starve the rest of the business.
What helps a file
- Twelve months of business bank statements, if you have them, so the season shows
- Vehicle or equipment quotes
- For commercial work, the contracts and receivables aging
- For larger requests, the last two years of tax returns