Guide

You want to add a plow, a salter and snow contracts so the crew works in January. What finances it?

The plow, the spreader and a truck to carry them finance as equipment through the dealer or an equipment lender over two to five years, applied for in late summer while the statements are strongest. The salt bought in October, the insurance rider and the crew's standby pay before the first invoice are working capital, funded in one to three business days. Seasonal contracts paid up front are the cheapest financing in snow; sell those first.

Why snow changes the whole financing picture

A landscaping company without a winter operation deposits almost nothing from December to March, and every funding application it makes in spring is read against that trough. A company with snow contracts deposits in January, keeps the crew, and reads to a funder as a year-round business. That is worth more than the plowing revenue itself: it changes the price of every dollar the company borrows in March.

The equipment, in August

A commercial plow, a tailgate or V-box spreader, and a truck heavy enough to carry them are assets, and dealers and equipment lenders finance them over two to five years with the equipment as security. Apply in August or September, against July's statements, when the offer will be the largest and the price the lowest; the same application in November is read against a fading fall and a dealer that has sold its stock.

Used plows and spreaders from a dealer finance readily. A used truck finances as a vehicle. A private-sale plow of unknown hours is a gamble that lenders shorten the term on and that hydraulics tend to punish.

Application to funded

01Hour 0YOU APPLYAbout 2 minutes.No hard credit pull.0224 hoursOFFERS COME BACKFrom the funders thatwrite your industry.0372 hoursFUNDS CLEAROnce you acceptand sign.
Drawn to elapsed time rather than as three evenly spaced steps, because the gaps are the point. Decisions usually land inside 24 hours and funding in as little as 72 hours — timings depend on the funder and on how quickly statements arrive.

The salt, the rider and the standby pay: working capital

Bulk salt is bought and paid for in October and spread from December on; the liability insurance rider for snow work is due before the first storm; and the crew is on standby pay for storms that have not yet happened. None of that is an asset, and a working capital loan or advance on the summer's deposits funds it in one to three business days. Borrow the salt pile and a month of standby, not a round number.

Contracts paid up front are the best money you will get

A seasonal snow contract billed at the start of the season — a fixed price for unlimited pushes from November to March, paid in October or in monthly installments — is customers financing the winter. Commercial properties, HOAs and property managers sign them routinely because they want a fixed cost. Per-push contracts pay after each storm on net-30, which is the gap the working capital above covers. Sell as many seasonal contracts as the crew can serve before buying a single ton of salt.

Sources

Related questions.

Will a lender finance a plow for a company that has never done snow?
The plow is the security, so yes, usually, with a down payment and a shorter term. Signed snow contracts in hand turn a speculative purchase into a scheduled one and improve the offer.
Should I subcontract snow instead of buying equipment?
For a first winter, subcontracting your contracts to an established operator keeps the customer relationship and the cash without the equipment. It also gives up most of the margin. Many companies do a first winter that way and buy the plow for the second.
Does a snow operation make the spring application easier?
Yes. December through February deposits from snow work are the difference between a funder reading a seasonal business and reading a year-round one, and the spring offer follows.

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