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Business Lines of Credit


LawnSite Member
Harriman, TN
We have been in business 20 years w/ primiarily residental, now have 7 commercials(2 medium size accts.& 5 small) without contracts(they don't want contracts). We know business lines of credit may be obtained by having large commercial contracts but we even recently bidded on large commercial for contracts, submitted a lower price, and they got the guy(s) doing it now just to come down to our price, instead of giving the contract to us. Well, we can't seem to get a business line of credit due to not having the large contracts. Does anyone have any suggestions or know of any resources or info. that you can navigate obtaining business lines of credit without those contracts?? Thanks


I had a business line of credit right off the get go.... But, I banked at a small home town bank where everyone knows your first name.


LawnSite Member
Wilmington, DE
i agree with lawnguy on this. Go and talk to a few of the banks and see how they can help you... Find someone who is willing to give you personalized attention and go the extra yard for you. good luck


LawnSite Bronze Member
Kitty Hawk, NC
This is why I strongly disagree with everyone that says pay cash for everything. Paying cash and being debt free is nice, but it does nothing to build your credit. We finance or lease all of our equipment and pay it off ASAP. This builds your credit and also helps at tax time. Not to mention the fact that it frees up your working capital.


LawnSite Silver Member
Morgantown, WV
I am with chuck and avery as well. I started off with a line of credit from our bank(local bank in biz for 100 yrs) and 2 business credit cards. Use your credit wisely and pay things off as you can.You can't get good credit if you don't have it or don't use it.I know that sounds redundant, but it's true. I am four years into my business, and have had my credit maxed at one time or another only to pay it off and have it increased the next cycle. Try getting some local banks to look over your current bank statements to offer suggestions on credit lines, even switch banks if necessary to gain new sources of trust and credit. It never hurts to have a good, reliable bank behind you when you really need them. Just my .02


LawnSite Member
I agree. Shop around. don't ever settle when a single bank says "no"

I went to four banks with an 80-page business plan. The first three didn't think a landscape management business was a real one. One banker questioned why I would start a business since I had a good government job.

I've had a Line of Credit since opening and it was easy to set up. I also communicate with my banker regularly over lunch, letting him know when we sign new large contracts, purchased new gear and even when our receivables are a little high. If they know your business, its easier for them to give you the credit tools you require. In Canada, I deal with Scotiabank and they are amazing.

I might suggest you put together a brief business plan outlining where you want your business to go in the future. Banks like to see that, even though you've been around a while, you're still planning ahead.

Good luck.


LawnSite Senior Member
boise idaho
I'd be a little leery on spending a lot of extra money on equipment without a signed contract. I understand why companies don't want to sign them, we are partly to blame. Many LCO's contracts give no benefits to the property owner only to themselves a good contract should benefit both companies. I did a bid for a HOA where they had their own contract. I got an interview and they asked if I had any concerns. I mentioned the part of the contract that let either party cancel at any time with of without cause. I asked them for a reason the would cancel mid-year and they said we would only cancel if we got poor service. I said why not just put either party may cancel with a 10 day notice with cause. This way mid-year the contractor does'nt drop you and go to another sub for more money. They had never thought of the contract as a tool to get a retain quality service. Now with my signed contract I could get financing if I needed.

See my point?