4 Financing Success Stories for Business Growth

Nebraska Landscaping Company Gets $60k Line of Credit to Be Prepared to Service Customers for Winter Season

Background and Challenge:

• A current LMN Pro customer who has been in business 3 years.
• Customers average between $50,000 and $100,000 per month in revenue, and does work both in summer and winter months.
• Nebraska can have big snow falls, making the need for good equipment and supplies critical.
• This business owner wanted to ensure his crews had the equipment and supplies needed to service more than 200 customers during the upcoming winter season.
• Specifically, he needed updates and repairs to trucks, as well as salt and de-icing materials.

Solution:

• He looked at multiple options for local financing. For various regions, they didn’t have the right options nor the time to shop at banks and credit unions.
• He learned of LMN Lend and applied for a line of credit, which would help him purchase equipment and repair his equipment while not impacting his daily cash flow for payroll, etc.
• He had 10+ options from LMN Lend, and ultimately a $60k line of credit was his best bet.
• Approved in late November, his fleet will be updated and ready by early December, and he’s ordered de-icing material to be ready for the first storms of the year.

Results:

• His 300+ customers across the Omaha metro area will be taken care of this winter season.
• He’ll reap the financial rewards associated with these jobs because he’s invested in himself and his business.
• He can afford to invest in equipment and bulk material in advance of doing the snow removal work without it affecting his current cash flow and payroll situation.

Nevada Lawn Care Company Acquires $500K Merchant Cash Advance to Fund Expansion

Background and Challenge:

• A well-established company in the SW United States regularly works with local municipalities on lawn care and service projects.
• Contractors have had a track record of helping these entities for some time, but lacked cash flow to cover equipment and other resource ramp ups.
• Each job can have a contract of upwards of $300,000 in fees, though the contractor needs to buy supplies and equipment in advance as well as have the crews that can complete the job to satisfy the customer.
• For each contract, he’ll clear $60-70K in revenue, but he must have the resources in place to do the work.
• To this point, the contractor has used credit cards to max out expenses to cover business upgrades.

Solution:

• As an LMN customer, the contractor has used the platform to help grow his business with better estimating, invoicing and more. He trusts LMN as a partner.
• He learned about LMN Lend and called to learn what options may exists.
• After speaking with LMN Lending experts who understood the core details of his business, the best solution was a merchant cash advance, which is a lump-sum of cash paid to the business for an agreed upon percentage of future credit or debit sales.
• In this instance, the new contract agreed to pay via credit card, and this will help the contractor increase cash flow, pay back the MCA and most importantly, service his customers with the supplies he needs.

Results:

• Through the MCA provided through LMN Lend, the contractor added to this team and equipment, paid his employees, gave his credit card a rest, and was able to service the list of jobs and expand his business.
• And by taking on this work, he’ll hit his two year revenue goals of $5 million.
• Avoided the purchase of equipment and materials with credit cards which in most cases, is not even an option for big purchases.

Florida Coastal-Based Landscape Contractor Gets $65,000 in Line of Credit to Sustain Growth

Background and Challenge:

• Established irrigation, installation tree and hardscape company serving the Tampa, Florida area.
• Have been in business for more than 5 years, and have been a user of LMN Pro for the past year.
• As the company has grown, they lack capital to take on additional projects.
• They currently work on a terms with customers between net 30 to net 90 days for payment, and because of the cost of materials and supplies, this can create a major impact on cash flow to pay employees.

Solution:

• After hearing about LMN Lend as they prepare for the upcoming winter season and with several projects in the hopper, the company applied through LMN Lend for a $75k financing option for working capital.
• This working capital would help them add projects and crews quickly once jobs close.
• After consulting with the LMN Lend team, they tapped a $60,000 line of credit they can use as needed.

Results:

• Now, thanks to the LMN Lend, the company has tapped the line of credit for one initial job, stocking up supplies for a big renovation in January.
• However, unlike in the past, they haven’t had to use credit cards or not pay select staff because the line of credit gives them flexibility to invest in their business.

Alberta-based Landscaping Contractor Acquires Merchant Cash Advance to Fund Equipment Updates

Background and Challenge:

• Based in Alberta, this smaller sized contractor has been in business for more than 10 years.
• They’ve seen a growing book of business that often requires them to use personal credit cards to pay for supplies and equipment.
• Recently the company signed a 5 year agreement with a big local company for landscape work, and needed to upgrade equipment to do the job right.
• Because of the usage of their personal credit card, the contractor’s credit scores were low, negatively impacting their ability to obtain funding from traditional lending outlets.
• Most do not understand their business nor want to take the time to do so.

Solution:

• After checking with local banks and lending institutions, the contractor turned to LMN Lend.
• They’ve been a user of LMN’s software for several years, and have come to trust their account teams who have helped their business grow.
• After applying through LMN Lend, their offer was accepted for a $25K merchant cash advance, which helped the contractor get the equipment they need now for the new job.

Results:

• Thanks to LMN Lend, this contractor now has the equipment they needed and their new job is underway.
• And as cash flow comes in through the job, they’ll be able to repay the loan over time while still using the equipment for years to come on other jobs, driving efficiency and more.