Guide

Your mower or truck died mid-season with forty accounts waiting. What replaces it this week?

A commercial mower or a truck is an asset, so the dealer or an equipment lender finances the replacement in two to five days with the unit as security, often with 10 to 20 percent down. The week of missed accounts, the rental, and the crew you are still paying are working capital, funded in one to three days on your deposit history. Apply in season, while the statements are strong.

In season, time is the expensive thing

A landscaping company in June with forty maintenance accounts has a route that has to run. A zero-turn that throws a rod, or a truck that will not pull the trailer, is not a repair bill first — it is a week of accounts not cut, and the crew paid anyway. On the contractor forums that is the recurring theme: the cash problem is never the equipment, it is the payroll and the missed week around it.

So two separate problems, two separate products, and the order matters.

The replacement: equipment financing, usually through the dealer

A commercial mower at a dealer generally comes with in-house financing on a two- to five-year term, and the dealer wants the sale more than the bank wants your file. A truck goes to an equipment lender or the dealer's finance desk the same way. Ten to twenty percent down is normal for a company under two years old or an owner with a rough score.

This is the cheap money in the picture, because the machine secures it. Take it for the machine and nothing else. A $14,000 mower funded on a six-month advance because the advance was faster is a $3,000 mistake.

Used commercial equipment finances too, from a dealer more easily than from a Facebook listing. Lenders want a serial number and a seller they can pay directly.

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 week you lost: working capital, sized to your season

Rental to keep the route running, the crew's wages for the gap, and the accounts you credited for a missed cut — none of that is an asset, and it is funded with a short-term working capital loan or a cash advance. Decision in about a day, money in one to three business days.

Amounts follow your deposits: half to one and a half times a month's. A crew doing $40,000 a month in June sees offers from about $20,000. You will not need that much for a week's gap; borrow what the gap is.

The timing point is the one landscapers miss. A funder reads the last three to six months. In June those months are the strongest you will have all year. The same application in December, after a slow November, gets a smaller offer at a worse price for exactly the same company. If you know a piece of equipment is on its last season, act while the statements are good.

Before winter

A landscaping business that survives on maintenance contracts has a predictable dip every year, and the dip is when things that were limping finally quit. A business line of credit, set up in summer against summer deposits, is the product built for that — drawn in February, repaid in May, costing nothing in between.

It is harder to qualify for than an advance and takes longer to set up. That is why it is a July project, not a January one.

Sources

Related questions.

Can I finance a mower with a 580 credit score?
Usually, with a larger down payment and a shorter term. Equipment lenders lean on the asset. A dealer's own financing arm may be stricter than a third-party equipment lender; ask both.
Should I fund the replacement and the gap on one advance?
No. The machine is cheap money; the gap is expensive money. One advance covering both prices the machine at the gap's rate. Two products, two applications, two days apart at most.
Does a snow contract help my application in winter?
Signed snow contracts help a funder understand a December deposit dip. They do not replace the deposits. Send the contracts with the statements; it is the difference between a gap and a story.

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