Equipment Financing for Landscaping Companies: Mowers, Trucks and Trailers

The Equipment Investment in Landscaping

Landscaping is an equipment-intensive business. A single crew needs a truck, trailer, mowers, trimmers, blowers, and hand tools—easily $50,000-100,000 in equipment. Scaling means multiplying this investment across multiple crews.

Equipment financing makes growth possible without depleting all your working capital on iron and steel.

Common Landscaping Equipment

Equipment Loans: Own What You Buy

Equipment loans let you purchase equipment and own it outright when the loan is paid. The equipment serves as collateral, making these loans accessible even to newer businesses.

Terms typically run 3-7 years depending on equipment lifespan, with rates from 6-15% based on credit and equipment type.

Equipment Leasing Options

Leasing provides lower monthly payments than loans but doesn't build equity. At lease end, you return the equipment or purchase it.

Leasing works well for equipment you might want to upgrade regularly, technology that changes quickly, or when preserving cash flow is paramount.

• $1 buyout lease: Essentially a loan, own at end for $1
• 10% buyout lease: Purchase for 10% of value at end
• Fair market value lease: Return or purchase at market rate
• Operating lease: Return at end, upgrade to new equipment

New vs. Used Equipment

Used landscaping equipment can provide excellent value. Commercial mowers with 1,000-2,000 hours often have thousands of hours of life remaining at 40-60% of new cost.

However, financing used equipment typically offers shorter terms and slightly higher rates than new equipment financing.

Section 179 Tax Benefits

Equipment purchases may qualify for Section 179 deduction, allowing you to deduct the full purchase price in the year of acquisition. For landscaping companies making equipment investments, this can significantly reduce effective costs.

A $50,000 equipment package with Section 179 deduction might reduce your tax bill by $12,000 or more, depending on your tax bracket.

Financing Sources

• Equipment dealers: Often offer financing, may include package deals
• Banks and credit unions: Best rates for qualified borrowers
• Online equipment lenders: Faster approval, flexible requirements
• Manufacturer financing: Deere, Kubota, and others offer programs
• SBA loans: For larger equipment packages ($100K+)

Building Your Equipment Strategy

Plan equipment additions strategically. Start with essential equipment for core services. Add specialized equipment as you expand services. Time purchases for off-season when dealers are motivated. Consider equipment packages that bundle financing.

Each equipment addition should enable revenue that exceeds its cost.

Maintenance and Replacement Planning

Equipment has finite lifespans. Plan for replacement before failures occur. Track hours on mowers and equipment, budget for replacements on a schedule, and maintain financing relationships for when you need them.

The best time to finance equipment is before you desperately need it—when you can shop terms and negotiate.