Revenue-Based Financing for Landscaping Companies
Revenue-based financing gives a landscaping company a lump sum repaid as a percentage of revenue, so January's small deposits bring a small payment and June's big ones pay down the balance fast. It fits the most seasonal businesses best, where a fixed payment would strain the winter. The total repayment is fixed up front, so a fast summer doesn't lower the cost.
Why a percentage suits landscaping
Deposits follow the seasons
BLS data shows landscaping employment at its low in January and its peak in June. Deposits follow a similar curve. A share of revenue adjusts automatically as the year turns.
Weather changes the math each year
A wet spring or a dry summer shifts revenue by weeks. A percentage absorbs those shifts without renegotiating.
A 5% share through January
Say $32,000 goes to a landscaping company doing $70,000 a month, with $40,960 to repay through a 5% revenue share.
| Month | Revenue | Remittance at 5% | Remittance as a share |
|---|---|---|---|
| An average month | $70,000 | $3,500 | 5.0% |
| January, the slowest | $57,200 | $2,860 | 5.0% |
| June, the busiest | $77,400 | $3,870 | 5.0% |
Expect about 12 months to hit the cap at average revenue, with January sending only $2,860. Per BLS, landscaping services (NAICS 561730) employ the fewest people in January (81.7 on a 100 average) and the most in June (110.6).
Where landscapers put it to work
- Adding a crew and truck for booked maintenance routes.
- Expanding into hardscaping or irrigation.
- Marketing for spring to fill the install calendar.
- Hiring and onboarding seasonal workers.
Terms to check
Winter minimums
Some agreements set a minimum monthly payment. Compare it to your January deposits, not your average.
Revenue definition
Ask whether snow removal, holiday lighting and other off-season work count toward revenue. Including them raises winter payments.
Reconciliation
If the funder debits a fixed amount and adjusts later, find out how often. Monthly adjustments can overcharge in the first weeks of the slowdown.
When it's the wrong fit
Short gaps that repeat each spring, like buying mulch and plants before installs pay, are usually cheaper on a line of credit. Revenue-based financing works best for growth, where new crews or services bring in the revenue that repays it.
Timing the funding
Money taken in late winter gets the season's growth behind it. The share stays small until spring work starts, then peak months pay most of the balance. Funding taken in fall runs straight into the low months, when progress is slowest.
Quick answers
Does revenue-based financing fit a seasonal landscaping business?
It's one of the best fits, because the payment follows revenue. Winter brings smaller payments and summer pays down the balance quickly. Check for a minimum monthly payment and compare it with your slowest winter month before signing.
What should a landscaping company use revenue-based financing for?
Growth with a clear payback, like adding a crew for booked routes, expanding into hardscaping or irrigation, or a spring marketing push. For recurring spring material purchases, a line of credit usually costs less.
Does snow removal revenue count in landscaping revenue-based financing?
It depends on the agreement. Some funders count all business revenue, including winter work, which raises payments in slow months. Others let you exclude specific revenue. Ask for the revenue definition in writing before you sign.
More for landscaping companies
- Same-day merchant cash advance for landscaping companies
- Second position MCA for landscaping companies
- MCA consolidation for landscaping companies
- Business line of credit for landscaping companies
- How funders read landscaping companies
- Revenue-based financing: how it works
Run your own numbers with the factor rate calculator.
Want to see what fits a landscaping company like yours?
Tell us your slow months and your open advances, and we'll shop the file with funders whose programs fit. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.