How to Finance a Commercial Landscaping Equipment Fleet

Building a commercial landscaping fleet is one of the largest capital investments you will make as a business owner. A single crew requires $50,000 to $100,000 or more in equipment: commercial mowers, a work truck, trailer, and hand tools. Scale to three or four crews and you are looking at a quarter million dollars in rolling assets.

The good news: equipment financing is one of the most accessible forms of business credit because the equipment itself serves as collateral. The challenge is structuring your fleet acquisition in a way that supports growth without straining cash flow.

What a Commercial Landscaping Fleet Actually Costs

Before approaching lenders, understand the real costs of building a production-ready crew:

A fully equipped crew requires $75,000 to $120,000 in equipment, depending on whether you buy new or used and the specific equipment mix for your service offerings.

Financing Options for Landscaping Equipment

Several financing structures work for landscaping equipment, each with trade-offs:

Equipment Loans: The Standard Approach

Equipment loans function like auto loans. You borrow a fixed amount, make monthly payments over 3-7 years, and own the equipment outright when the loan is paid. The equipment serves as collateral, which makes approval easier than unsecured financing.

For a $50,000 equipment package at 9% over 5 years, expect monthly payments around $1,040. The total cost of financing is approximately $12,400 in interest, but you own assets worth something at the end.

Equipment Leasing: Preserving Cash Flow

Leasing provides lower monthly payments because you are financing the depreciation, not the full equipment value. At lease end, you can return the equipment, purchase it at a predetermined price, or upgrade to newer models.

• $1 buyout lease — Functions like a loan. You own the equipment at end for $1. Payments slightly higher than FMV leases but you build equity.
• 10% buyout lease — Purchase at end for 10% of original value. Lower monthly payments than $1 buyout.
• Fair Market Value (FMV) lease — Lowest monthly payments. At end, purchase at market rate or return. Best for equipment you plan to upgrade frequently.

Leasing works well for landscapers who prefer to upgrade mowers every 3-4 years rather than running them until they fail. Commercial mowers depreciate quickly under heavy use, and newer models often offer efficiency improvements that justify the upgrade cycle.

Manufacturer and Dealer Financing

Major equipment manufacturers offer financing programs through their dealer networks. John Deere Financial, Kubota Credit, and similar programs often feature promotional rates on new equipment, sometimes as low as 0% for qualified buyers.

The trade-off: manufacturer financing typically applies only to their brand, and promotional rates may come with restrictions. Compare the total cost to independent lenders before assuming the promotional rate is the best deal.

SBA Loans for Larger Equipment Packages

If you are financing $100,000 or more in equipment, SBA 7(a) loans offer the lowest rates and longest terms. Current SBA rates run Prime + 2.25% to 2.75% with terms up to 10 years for equipment.

The catch: SBA loans require more documentation and take longer to close (typically 30-60 days versus 1-2 weeks for equipment loans). They work best for planned, larger purchases rather than quick equipment needs.

New vs. Used Equipment: The Practical Math

The new versus used decision significantly impacts your financing requirements:

• New commercial mowers — Full warranty, latest features, better fuel efficiency. Expect 5-7 years of productive life. Financing terms up to 7 years.
• Used commercial mowers (2-3 years old) — 30-50% less cost, still productive. Check hours (under 1,500 is ideal). Financing terms typically 3-5 years.
• Used trucks — Fleet trucks with 50,000-80,000 miles offer significant savings. Commercial use means higher miles are acceptable. Get a mechanic inspection.
• Trailers — Used trailers, if well-maintained, offer excellent value. Structural integrity matters more than cosmetics.

A practical approach for growing landscapers: buy trucks and trailers used (they have long useful lives and depreciate predictably), but consider new or lightly used mowers (they take the most abuse and are central to productivity).

Qualifying for Equipment Financing

Equipment financing is accessible to most established landscaping businesses. Lenders evaluate:

• Time in business — 2+ years preferred, though 1 year may qualify with strong credit
• Personal credit — 650+ for most programs, 680+ for best rates
• Business revenue — Demonstrated ability to support payments
• Down payment — 10-20% typical, though some programs offer zero down
• Equipment type and condition — New equipment from established brands finances more easily

Building Your Fleet in Stages

Rather than financing everything at once, consider a phased approach:

• Stage 1: Core equipment — One quality mower, reliable truck, trailer. Prove the business model.
• Stage 2: Backup and efficiency — Second mower (reduces downtime), upgraded trailer, improved hand equipment.
• Stage 3: Scale for crews — Additional complete crew setups as demand warrants.

This approach lets you build credit history, demonstrate revenue growth, and reduce the risk of over-leveraging before the business can support the debt.

Real-World Scenario: Equipping a Second Crew

Situation: A residential landscaping company in Austin has operated for 3 years with one crew, generating $240,000 in annual revenue. Demand exceeds capacity during peak season (March through October), and the owner wants to add a second crew.

Equipment needed: Commercial zero-turn mower ($13,000), stand-on mower ($9,500), enclosed trailer ($11,000), hand equipment package ($4,500). Total: $38,000. The owner already has a second truck that can be assigned to the new crew.

Financing approach: Equipment loan for $38,000 at 10% over 5 years. Down payment: $3,800 (10%). Monthly payment: approximately $725.

Result: Second crew operational by March. Peak season revenue increased 55%. Monthly equipment payments covered by additional revenue within the first month of new crew operation. Equipment paid off in year 4, freeing cash flow for third crew expansion.

Tax Benefits of Equipment Ownership

Equipment purchases offer significant tax advantages:

• Section 179 deduction — Deduct the full purchase price in the year of purchase (up to $1,220,000 for 2026). A $50,000 equipment purchase could reduce taxable income by $50,000.
• Bonus depreciation — Additional first-year depreciation for qualifying equipment.
• Interest deduction — Loan interest is typically deductible as a business expense.

Work with your accountant to time equipment purchases for maximum tax benefit. Many landscapers make major purchases in Q4 to capture tax benefits in the current year.

Common Mistakes to Avoid

Equipment financing pitfalls to watch for:

• Overbuying for current needs — Finance equipment for your current operation, not your aspirations. Add equipment as revenue grows.
• Ignoring total cost — A lower monthly payment over a longer term may cost more total. Calculate total interest paid.
• Skipping maintenance — Financed equipment still needs maintenance. Budget for it separately.
• Accepting first offer — Get quotes from at least three lenders. Rates vary significantly.
• Forgetting insurance — Lenders require insurance on financed equipment. Factor premiums into your cost analysis.

Getting Started

Equipment financing for landscaping businesses is straightforward when you prepare properly:

• Know exactly what equipment you need and realistic costs
• Pull your credit report and address any issues
• Gather 2 years of tax returns and recent bank statements
• Get quotes from equipment dealers for the specific items
• Compare financing offers from multiple sources

Building a productive equipment fleet takes time and planning, but the financing is accessible. Focus on equipment that drives revenue, avoid over-leveraging, and build your fleet as your business grows.

Liminal can help you compare equipment financing options from multiple lenders. Our marketplace shows you offers based on your specific situation, and checking rates does not impact your credit score.