Funding for New York Landscaping and Snow Removal Companies

Revenue in two seasons

Many upstate New York landscaping companies also plow snow, which smooths income across the year but makes the calendar tricky. Summer work is mowing, planting, mulching, hardscape and cleanups. Winter work is plowing, salting and shoveling, and it depends on the weather. A mild winter means fewer storms and a smaller income, even though the equipment was bought, the insurance paid and the crew was on standby.

The shoulder periods at each end are the hardest, because a business gets ready for the next season by spending money before the work starts.

Equipment for both seasons

Summer

Mowers, trimmers, trailers, trucks and skid steers. The machines work hard, and breakdowns in peak weeks cost more than the repair.

Winter

Plow blades, spreaders, salt storage and the trucks that carry them. A plow mount or a spreader failing mid-storm means lost contract hours and unhappy clients.

Year-round

Fuel, insurance, vehicle registration and storage are constant. The crew has to be paid and retained, since good operators are difficult to replace.

A calendar of cash

1. Early spring. Buy mulch, seed, plants and fuel, service mowers, and hire seasonal crew. Little revenue has arrived.
2. Summer. Steady invoices, though commercial properties may pay on terms.
3. Fall. Cleanups bring a final burst. Meanwhile, plows and spreaders are prepared for winter.
4. Winter. Income depends on snowfall and on whether seasonal contracts are structured per push or flat.

Working capital can help move money from the stronger months to the weaker ones, particularly when a large piece of equipment is needed at the start of a season.

Commercial accounts, payment terms and winter contracts

Property managers, shopping centers and businesses are typical clients, and many pay on terms after the work is done. For a snow contractor, that can mean a storm's work is invoiced weeks later, while fuel, salt and labor for that storm are paid immediately. A busy winter can strain cash more than a slow one, because costs rise quickly before the receipts arrive.

Salt and material storage is another consideration. Buying in volume before the first storm helps secure supply, but it uses cash on materials that may or may not be needed. Think about how much stock you are comfortable holding, and consider what happens to the leftover material in a mild winter.

Contracts and the weather

Seasonal snow contracts vary. Some are priced per push, which makes income depend on storms. Others are flat-fee, which gives a steadier income but covers heavier snowfall at the contractor's risk. Know which structure your income rests on before deciding how much cushion you need.

For illustration only: a crew wanting a $55,000 plow truck for winter work should consider whether its contracts will cover payments in a low-snow season. The same truck can usually be put to use in summer hauling, which helps justify it.

Funding from $25,000 to $5,000,000 is available, funded in as little as 24 hours. FICO 500 and up considered, about three months of business bank statements, no tax returns, five-minute application and a soft credit pull. Sole proprietors can apply. Start your application.