Starting any business requires a good amount of cash. And a lawn care company is no different. From a truck to power tools, it takes thousands of dollars to get the equipment you need to start serving clients. If your personal bank account isn’t bursting at the seams with enough funds to cover all of the costs of startup, you’ll need to consider one of the many lawn care business loans on the market.
A few of the most popular types of business startup financing are 401(k) funding, small business loans, and credit card finance. Each of these options comes with its own set of benefits and drawbacks, so you’ll want to do some research before deciding which is right for you.
401(k) financing: If you have the money, you can use it to fund your startup lawn care business. Withdrawing 401(k) funds to open your business is the second most common way American entrepreneurs pay for their startup. However, you’ll need to be aware of the tax penalties and restrictions that come with this type of loan.
Small business loans: If you have a strong credit score, a small business loan is an excellent option for your startup. These loans are often provided by local banks and are designed to help new businesses succeed with lower interest rates and longer repayment periods than those offered by traditional lenders. If you choose to pursue a small business loan for your lawn care business, be sure to check out the SBA’s list of approved lenders before applying.
Credit card finance: If your personal credit is high enough, you can borrow against your own assets to fund your lawn care business. This is a type of unsecured debt that comes with the same risk as other forms of unsecured debt, such as borrowing from friends and family.
Lawn care business grants: As a lawn care entrepreneur, you might be eligible for some special grant opportunities. These grants are usually geared towards helping businesses that offer specific services, such as eco-friendly landscaping. They could also be aimed at helping companies that employ teens or adults from the community.
There are also grants that are specifically geared toward female entrepreneurs. These grants were created to support women in business and may be available at the state, city, or even national level. In addition, there are grants aimed at helping business owners improve their facilities, which might include upgrades to office equipment or machines.