The lawn and garden market in the U.S. is huge, generating the highest revenue in the world: $129 billion in 2023. It’s projected that the market will experience an annual growth rate of 2.64% through 2028.


While there are some major players in this space, there are many more smaller businesses seeking to provide services to local customers. There are several reasons why a small or medium-size lawn and garden business might seek alternative funding, including employee payroll and training, equipment maintenance/upgrades and insurance costs.


Before barreling forward to seek a business loan for a lawn and garden company, it’s important to answer three important questions:

  • What do you want to finance? Be very clear about what you need the funds for—working capital to pay bills, cash to pay existing staff or hire more, money to pay for marketing materials, overcoming cash flow issues or something else.
  • What does your cashflow look like? It may be inconsistent due to slow customer payments, sporadic work or the seasonal nature of the business; maybe you just lack an emergency fund; or perhaps you’re just getting started.
  • How successful is your business? This requires looking at things such as how long you’ve been in business, what your revenue is, if you have other outstanding business loans and what your personal and business credit scores are.


Answering these questions truthfully will allow you to determine what type of loan to get, how able you are to repay the loan and which loans you will qualify for. Every businesses’ situation is different, so there is no one-size-fits-all business loan out there that covers every need.


There are three types of business loans that traditionally work best for lawn and garden companies:

  • Invoice financing—This type of business loan ensures your business doesn’t suffer if your customers drag your feet to pay you, leaving you with a cash flow problem. Your lender will give you around 85% of your outstanding invoices in advance so you can make sure you have the money you need to pay your obligations. Once your customers start to pay you, the lender will release excess funding minus their fee.
  • Equipment financing—This type of business loan allows you to purchase the equipment you need to stay in business, anything from small tools to professional mowers or a storage shed. Your lender will provide you with the funds to purchase equipment based on the quote you provide, with the equipment serving as collateral.
  • Business line of credit—This type of business loan combines elements of a traditional loan and a cash advance on a business credit card. Your lender will approve you for a set amount that you are able to draw from as needed. You only pay interest on the money you use and these are revolving accounts, meaning they re-up when you pay them back.


The Bottom Line

The demand for lawn and garden companies means you can make a good living in this industry but you may occasionally find yourself in need of financing to get through a short-term cash crunch, purchase new equipment, hire more staff or enhance your marketing efforts. There are options out there for you—you just need to do some homework to determine which one is best for your particular situation.


Clear Skies Capital has helped many lawn and garden businesses with their financing needs. If you have any questions about how to secure a business loan for your lawn and garden business, give Clear Skies Capital a call at 800-230-9822. You may be pleasantly surprised at what you qualify for.