To finance landscaping equipment in Ames, IA, a crew can put mowers and a trailer on one equipment agreement, finance a skid steer and its attachments on a longer term, and keep fuel and parts on a line of credit. Signed service contracts show a funding partner where the payments will come from.
An Ames, IA landscape crew can bundle mowers and a trailer into one equipment agreement, finance a skid steer separately, draw a credit line for fuel and parts, and use signed service contracts to support the request.
Mowers and trailers on one equipment plan
A mowing crew’s working kit is two or three commercial mowers and the enclosed trailer that carries them between properties and locks them up at night. Bought together from one dealer, they can sit on a single equipment financing agreement with one payment date, instead of three separate contracts.
Illustration only, invented figures: a two-crew operation adds a pair of zero-turn mowers and a new enclosed trailer.
| Line | Amount |
|---|---|
| Two zero-turn mowers at $13,150 each | $26,300 |
| Enclosed trailer | $6,950 |
| Bundle price | $33,250 |
| Paid at signing | $4,250 |
| Amount financed | $29,000 |
Illustration only, invented figures: financing $29,000 for four years at 8.25% a year sets the crew’s monthly bill at $711.38. Four years of that bill is $34,146.24; $5,146.24 of the sum is the cost of borrowing.
One plan is simpler to track, but it sets one term for items with different working lives: a trailer can outlast two sets of mowers. A crew can keep the trailer on its own agreement for that reason; the partner sets the terms it will offer either way.
Handheld trimmers, blowers and edgers can join the bundle when they are on the same dealer quote, or be paid from cash flow. Whether small items belong on the agreement is for the partner to say.
A skid steer with a bucket, pallet forks and a grapple
A skid steer turns a mowing crew into a crew that can also move soil, mulch and stone, set pallets of sod and clear brush. Much of its value is in the attachments: the bucket that comes with the machine, pallet forks for material and a grapple for branches and debris.
Illustration only, invented figures: a used skid steer at $41,500 with pallet forks ($1,450) and a grapple ($3,850) comes to $46,800. Financed in full over 60 months at 9.25% a year, the payment is $977.18; across the 60 payments the crew pays $58,630.80, putting the interest at $11,830.80.
A machine at that price is a bigger request than the mower bundle, and a funding partner may look at its hours, its serial number and the seller’s details before it sets a term. A used machine is not ruled out; its age and condition are the partner’s to weigh.
County Business Patterns shows 40 landscaping services establishments (NAICS 561730) with paid employees in Story County, Iowa for 2023.
Fuel and parts on a credit line: notes for Ames, IA owners
Fuel and parts are not equipment purchases. They are the running costs of the equipment: gasoline and diesel bought at the station, mower blades, belts, filters, oil, trimmer line and replacement tires. They come due every week, while commercial clients may pay their invoices 30 days after the work.
A line of credit fits that pattern. The crew draws for the week’s fuel and parts, pays the draw down when invoices are paid, and pays interest only on what is drawn.
Illustration only, invented figures: a month’s fuel of $2,100 and $1,350 of parts make a $3,450 draw, held for 30 days until client payments arrive. At 14% a year on a 365-day count, interest on the draw is $39.70.
Of the county’s 40 landscaping services establishments with employees, 23 had fewer than five people on staff in 2023 (57.5%).
Service contracts that support the request
For a crew, a signed service contract is the clearest record of where an equipment payment will come from. A funding partner may ask for the contracts themselves and look at the monthly billing, the end date, the renewal terms and how much of the crew’s revenue rests on one client.
Illustration only, invented figures: three signed maintenance contracts bill $2,800, $1,900 and $1,250 a month, $5,950 in all. The mower-and-trailer payment of $711.38 is 12.0% of that monthly billing.
- Signed contracts with property managers, offices or associations, with their billing amounts.
- Recent invoices and the matching deposits on the bank statements.
- A dealer quote per mower, or the bill of sale when buying from another crew.
- The latest business tax return.
The request form itself takes contact details and three ranges; the contracts are for the call and the partner’s review. Start on the apply page.
ZIP Code Business Patterns lists 14 landscaping services establishments with employees at a ZIP 50010 address for 2023. The landscaping funding page covers crews in more detail, and the blog lists the other articles.
By Halehaven Loans · Updated
