Managing a hardscaping business is a difficult job! The continuous need for large-scale materials, taking on ambitious initiatives, and covering costs during slow seasons all require a steady flow of funds.
Every opportunity in this competitive business is essential – so moving fast can mean the difference between success and stagnation. Working capital is one strategic tool that can completely change how you overcome this problem.
In this article, you can get an understanding of how you can use a working capital loan to grow your hardscaping enterprise before seeing if you qualify for one.
In this article…
- Understanding Hardscaping Business Loans
- The State of the Hardscaping Industry Today
- Why Working Capital Loans are Necessary for Hardscaping Businesses
- Benefits of Working Capital Loans
- Accelerate Your Growth: Apply for Working Capital with Beacon Funding
Overall, a working capital loan can be a lifesaver when your business needs to expand quickly, overcome obstacles, and take advantage of significant opportunities. Let’s dive in.
Understanding Hardscaping Business Loans
In the United States, there are around 622,000 companies that provide landscaping and lawn care services. These companies include specialists in areas like:
- Interior landscaping,
- Heavy equipment operation,
- Botany and arborist,
- Landscape architects and designers,
- Landscape maintenance, technicians, and more.
There’s more competition now than ever. In 2020, the total number of U.S. landscaping companies grew 31%, with landscape maintenance emerging as the service with the quickest growth rate as customers started spending more time at home. And until 2030, there will likely be a further 8% expansion in the number of landscaper jobs, with over 173,000 new positions in 2023 alone.
As the industry grows, the landscaping business continues to be impacted by labor shortages, pricing hikes, and the growing difficulty in finding supplies and materials. Due to potential cash flow issues, landscapers may struggle to keep up with demand and expand their businesses.
Landscapers of different sizes and specializations can face these obstacles and keep expanding with the help of landscaping business loans.
The State of the Hardscaping Industry Today
Overall, the commercial landscaping market is thriving and can bring in a sizable sum of money for entrepreneurs.
IBISWorld estimated that the lawn care sector will have a $176.5 billion market in 2023. Also, there is a growing need for well-kept lawns: From 2017 to 2022, the industry expanded at a rate of 5.3% year on average.
Common Industry Challenges
- Labor shortages
- Excessive gas prices
- Fierce competition
To overcome these obstacles, it is crucial to differentiate yourself with exceptional customer service, dependability, and having enough cash on hand to take advantage of opportunities.
Why Working Capital Loans Are Necessary for Hardscaping Businesses
Maintaining a consistent cash flow can be difficult for hardscapers. You're overrun with tasks one minute, and there is nothing to do the next. Contracts can occasionally be irregular because of the season. To make matters worse, maintaining a consistent cash flow can be difficult if those contracts don't always pay on time.
The solution? Working capital from Beacon Funding can swiftly give your company a sizeable infusion of cash (up to 8% of total revenue).
Working Capital Loan: What Is It?
A working capital loan is a short-term loan that Beacon Funding provides to landscapers to fund their daily operations. This loan can be used in whichever way a business owner deems fit.
Benefits of Using Working Capital Loan
Working capital loans aim to offer funding for short-term capital expenses, such as payroll, rent, and debt service payments and fund activities such as marketing and sales or research and development.
For example, your hardscaping enterprise may have a unique opportunity if there is a sudden and significant surge in demand for your services due to unanticipated events. You may need to buy more raw materials or increase your workforce.
Your organization's ability to maintain profitability and the business's longevity may depend on your ability to react to market shifts.
Working capital loans can shift the game for your hardscaping operations:
1. Get up to $250,000
Hardscaping companies frequently experience cash constraints during crucial periods because of the unpredictable nature of contract payments. Landscape loans can help with cash flow problems right away. This funding infusion is essential for paying for various operational costs, particularly during periods of high demand.
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2. Works for Many Projects
Working capital loans aim to satisfy the many requirements of hardscaping enterprises, regardless of whether you focus on commercial projects, residential hardscaping, or any other specialty within the sector.
3. Quick Funding and Approvals
There is no time for your business to wait. When you need money, you need it right away. Landscape loans ensure you take advantage of possibilities rapidly with their speedy 24-hour approval and funding processes.
4. Simple and Fast Renewal Process
Your financial demands might change as your company expands. Programs for working capital frequently have simple renewal procedures that let you modify your funding as needed.
5. Flexibility
As your hardscaping firm grows, so will your financial needs. You can modify your funding with these simple renewal procedures linked to working capital plans. This flexibility improves your odds for sustainable growth.
Accelerate Your Growth: Apply for Working Capital with Beacon Funding
A significant advantage of utilizing working capital lies in its fast and easy application process, especially beneficial for hardscaping businesses subject to seasonal demands. You can apply in minutes and get approved within 24 hours.
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Plus, the renewal of a working capital is made effortless. At Beacon Funding, our dedication to personalized service and prompt response ensures that you can depend on us to deliver the financial assistance you require precisely when you need it. We prioritize building strong relationships with our clients, taking the time to understand your goals and aspirations.