gardening & business loan

Starting a gardening business can be pretty hard, like any other business. It requires a lot of dedication, passion, and not to mention – money. Unfortunately, in most cases, the money needed to start any business isn’t readily available. That is why business owners frequently choose to take out a small business loan. But is this option worthwhile, and will it pay off in the end? Keep on reading to find out!

Should you take out a business loan?

First, you must figure out what you want to finance with your business loan. Do you need more supplies, gardening equipment, or a crew to help you with your business? There are different types of loans that finance your different needs and priorities.

Furthermore, you have to look at your cash flow. Is it solid throughout the year, or does it come in seasonally, depending on the gardening business you are running? And, of course, you have to decide whether your business is healthy enough to take out a business loan to finance it. Otherwise, you will take out more loans and bury yourself in debt.

Choices For Gardening Business Loans

Let’s look at some of the more popular choices when it comes to business loans for gardening and lawn care:

#1. Equipment financing loans

The equipment, especially the machinery needed for a gardening business, can be costly. That is why business owners usually take out equipment financing loans. These loans are self-collateralized business loans, meaning that the equipment you buy is collateral for the loan. The amount of money you can borrow also depends on the type of equipment you would like to purchase – its value, whether the equipment is new or old, etc. Most of these loans have fixed interest rates and are well-suited for new businesses that do not generate high revenue or have excellent credit scores.

#2. Merchant cash advances (MCAs)

MCAs are an option that can be faster than the others but also a lot more expensive. These cash advances are usually used by small and up-and-coming businesses that work with debit and credit card sales. You don’t need an excellent credit score or extensive collateral to qualify for a merchant cash advance. All you need is a good cash flow. So after you take the advance, you pay back the money plus a fee by authorizing the lender to take out a daily or weekly percentage of your credit card sales. This goes on until the total amount has been paid back. The catch is that MCAs often come with higher rates than other types of loans.

Read more: 6 Ways to Make Gardening More Fun.

#3. Small business loans

Small business loans are usually reserved for older businesses – two years or older, that have an excellent credit score – of at least 650 scores. These loans can be the perfect solution for small business owners. They have low-interest rates and monthly payments with extended repayment periods. These loans also have many different uses compared to others, like equipment loans. All this said these loans could be a little harder to qualify for.

#4. Business lines of credit

Similar to small business loans, business lines of credit can be used in many different ways. One of the advantages of this type of loan is that you have access to a fixed amount of money every time a need arises. So what happens is a lender will approve your access to a fixed amount of money, and you only pay interest on the amount you have used rather than the total value of the loan.

You can continue drawing from the money until you reach the limit of your complete approval. Business lines of credit often offer lower interest rates but are harder to get. Older businesses with good credit scores and high revenues usually have the advantage of these loans.


All in all, running your own business can be very challenging. The finance portion of the business can get a little tricky when it comes to gardening, especially if it’s a seasonal operation. However, by analyzing different types of business loans and their pros and cons, you can easily pick the one best suited for your company. We have given you four options to help you on your journey toward a successful gardening business.

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