Running a successful and thriving landscaping business requires reliable, professional-grade equipment. From commercial mowers and trimmers to trucks, trailers, and specialized machinery, the costs of properly equipping your business can easily reach into the tens of thousands of dollars, or more for larger operations.

Landscaping equipment financing helps lawn care and landscaping businesses acquire the tools they need without depleting cash reserves. We’ve worked with landscaping companies of all sizes, from solo operators to regional franchises, to secure financing that fits their budget and growth plans. In this guide, we’ll explain everything you need to know about financing landscaping equipment.

What Is Landscaping Equipment Financing?

Landscaping equipment financing is business funding specifically designed to help lawn care, landscaping, and grounds maintenance companies purchase equipment. Instead of paying the full cost upfront, you make monthly payments over a set term, typically ranging from two to seven years.

The equipment itself usually serves as collateral for the financing, making approval easier than unsecured business loans. Lenders view landscaping equipment as relatively secure collateral because it’s essential to your operations and maintains resale value.

Financing is available for both new and used equipment. While new equipment typically qualifies for better rates, quality used equipment can be financed at reasonable terms, especially if it’s been well-maintained.

Ready to get started? Contact Llama Loan today to secure the financing you need to grow your business!

Common Landscaping Equipment Financed

Landscaping businesses finance a wide range of equipment, including:

Mowing Equipment:

• Commercial zero-turn mowers
• Stand-on mowers
• Walk-behind mowers
• Riding mowers

Maintenance Equipment:

• String trimmers and edgers
• Leaf blowers and vacuums
• Chainsaws and pole saws
• Hedge trimmers
• Aerators and dethatchers

Heavy Equipment:

• Skid steers and mini excavators
• Dump trucks and pickup trucks
• Equipment trailers
• Compact tractors
• Stump grinders

Specialized Equipment:

• Irrigation installation equipment
• Sod cutters and installers
• Snow removal equipment
• Landscape lighting installation tools

Pros of Landscaping Equipment Financing

1. Preserve Working Capital

Landscaping businesses operate on seasonal cash flows, and maintaining adequate working capital is critical. Financing allows you to acquire necessary equipment without draining reserves you need for payroll, materials, fuel, and marketing.

We’ve worked with lawn care companies that financed their equipment fleets rather than paying cash, keeping sufficient reserves to weather slow winter months and invest in spring marketing campaigns.

2. Scale Your Business Faster

Financing enables you to take on more clients immediately rather than waiting months or years to save for equipment. If you’re turning away work because you lack capacity, financing the right equipment can pay for itself quickly through increased revenue.

3. Tax Advantages

Landscaping equipment financing offers significant tax benefits. Under Section 179, you may be able to deduct the full purchase price of qualifying equipment in the year you place it in service, rather than depreciating it over several years.

This can result in substantial tax savings that effectively reduce the true cost of your equipment. Consult with your accountant to maximize these benefits.

4. Predictable Monthly Payments

Fixed monthly payments make budgeting simple and straightforward. You know exactly what you’ll owe each month, making it easier to manage cash flow and plan for seasonal variations in revenue.

5. Easier Approval Than Unsecured Loans

Because the equipment serves as collateral, landscaping equipment financing is often easier to obtain than unsecured business loans. Even newer landscaping businesses can qualify if they demonstrate strong sales and reasonable credit.

6. Stay Competitive

The landscaping industry is competitive, and having professional-grade, reliable equipment sets you apart. Equipment financing allows you to acquire the quality equipment that impresses clients and enables efficient operations without waiting years to save the full purchase price.

Cons of Landscaping Equipment Financing

1. Higher Total Cost

The biggest drawback is paying more than the equipment’s purchase price due to interest and fees. A $40,000 equipment package financed over five years at 12% interest will cost you approximately $53,500 in total payments which is $13,500 more than paying cash.

2. Long-Term Obligation

Financing commits you to payments for the entire term regardless of how your business performs. If you have a poor season due to drought, excessive rain, or economic downturn, you still owe those monthly payments.

The landscaping industry is weather-dependent and seasonal, making consistent revenue challenging. Equipment payments add fixed costs that continue even during slow periods, which can be problematic.

3. Rapid Depreciation

Landscaping equipment depreciates quickly, especially commercial mowers and handheld equipment that see heavy use. You might owe more than the equipment is worth within a year or two, creating challenges if you need to upgrade or sell.

Used commercial mowers often sell for 40-60% of their original price after just two seasons, but you’ll still owe the full loan balance.

4. Personal Guarantee Requirements

Some lenders require personal guarantees for landscaping equipment financing, especially for newer businesses. This puts your personal assets like your home, savings, vehicles at risk if your business can’t make the payments.

How to Qualify for Landscaping Equipment Financing

Credit Requirements

Lenders evaluate both personal and business credit scores. Most require a minimum personal credit score of 550-650, though some lenders work with scores as low as 550 if other factors compensate.

New landscaping businesses without established business credit will rely heavily on the owner’s personal credit history, so keep this in mind when applying.

Time in Business

Many lenders prefer businesses operating for at least one to two years. However, startup financing is available for landscaping businesses, particularly for owners with relevant industry experience or strong business plans.

Landscaping is a relatively accessible industry to enter, and lenders understand that many successful companies start with minimal operating history.

Financial Documentation

Be prepared to provide:

• Personal and business tax returns (one to two years)
• Bank statements (three to six months)
• Profit and loss statements
• Equipment quotes or invoices
• Business licenses and insurance certificates
• Client list or contracts (for larger purchases)

The specific requirements vary by lender and loan amount. Larger financing requests require more extensive documentation.

Revenue Requirements

Many lenders require minimum monthly revenue, typically ranging from $10,000 to $20,000 depending on the financing amount. This demonstrates your ability to support equipment payments alongside other operating expenses.

Down Payment

Most types of equipment financing require a down payment of 10-20% of the equipment cost – this include restaurant equipment financing, medical equipment financing, and more. Some lenders offer zero-down financing for well-qualified borrowers, while others may require 25-30% down for startups or those with credit challenges.

Insurance Requirements

Lenders typically require comprehensive insurance coverage on financed equipment. You’ll need proof of insurance before funding is released, and the lender will be listed as a loss payee on the policy.

Landscaping Equipment Financing for Bad Credit

Having less-than-perfect credit doesn’t automatically disqualify you from financing landscaping equipment!

This type of financing is often more accessible than other types of business loans because the equipment itself serves as collateral, reducing the lender’s risk. Even with poor credit, you can improve your chances of approval by demonstrating strong business fundamentals. Show consistent revenue – typically $10,000 or more per month – as lenders care most about your ability to repay.

Keep in mind that bad credit financing typically comes with higher interest rates and less favorable terms. You might see rates ranging from 13% to 20% or higher, compared to 8% to 15% for borrowers with good credit. While these rates are expensive, they may still be worthwhile if the equipment enables you to take on more work and grow your revenue. As you make consistent on-time payments and rebuild your credit, you can refinance to better terms down the road.

Is Landscaping Equipment Financing Right for You?

Landscaping equipment financing makes sense when you need equipment to take on more work, your current equipment is failing and affecting your productivity, or you’re starting a new landscaping business and need to equip your operations.

The right financing partner understands the seasonal nature of landscaping businesses and the specific equipment needs of lawn care companies. Look for lenders experienced in working with green industry businesses who offer flexible terms that account for your seasonal cash flow.

Ready to finance your landscaping equipment? Llama Loan specializes in connecting landscaping and lawn care businesses with competitive equipment financing options. Our comparison tools help you evaluate multiple offers and find the solution that best fits your needs and budget. Get started today and discover what’s possible for your landscaping business.