More funds The LMN Lend application took Budrow five minutes, and he had the amount in four days. (Photo: Gingko Landscape Management)
We live in booming times in the lawn care and landscaping industry. The only thing holding back some businesses might be their own success, as well as a lack of available capital to take the necessary steps to grow the business.
Landscape Management Network (LMN) is a business management software company for the lawn care and landscaping industry. The core of the business has been online tools like payroll reporting, scheduling, and credit card processing, but in working with its customers, the company heard a common complaint: many banks considered the green industry as an industry to avoid.
“Obviously, our product is strong in helping customers budget,” says Mark Bradley, CEO of LMN. “What has become very apparent is that many banks are not interested in dealing with landscape businesses, especially seasonal businesses. We looked a little closer and saw a product to create.
The resulting product was LMN Lend, which became a reality in October 2021. Bradley says the company wants to help the industry grow with an easier path to get equipment, seasonal cash flow, loans on inventories and loans on accounts receivable. According to the company, LMN Lend has received over 200 applications since going live and has so far helped secure over $2 million in funding for entrepreneurs.
hot market
“Landscapers have a lot of demand right now,” says Joel Schaubel, senior vice president of lending for LMN. Schaubel comes to LMN after working in the heavy equipment industry, where he worked in distribution. Schaubel recalls a phone call he received from a client in South Carolina who needed an influx of $100,000 to meet the demand he was encountering and preparing for the upcoming season.
“He needed to add a loaded truck and a crew,” says Schaubel. “He knew the return on investment. We were able to provide him with so much more than he came for, and ultimately he will grow his business and reduce his backlog.
Buy in advance to save
Chris Budrow is the owner of Ginkgo Landscape Management, Moncton, New Brunswick, Canada. His company provides landscape maintenance services to commercial clients with multiple locations.
His company, like many, wanted to expand its storage facilities to buy equipment at the best price and store it on site. This motivated him to try LMN Lend.
“It’s impossible for us to get topsoil in April and then again in November and December, so I thought, why not get the money so we can build a space, get access to it, and then extend our own season,” Budrow says. “If I get the land in June, it’s $220. The same charge in November is $380…makes sense (to stock it). I would gladly pay 10-15% (interest) or more for something that will earn my business 50% more.
“It’s funny, you think you need financing in a recession. The truth is, with things booming the way they have been, entrepreneurs are growing at a blistering pace,” says Bradley. “Often these companies grow faster than their cash flow. We see 30,000 startups per year in the landscape, and many companies come to us for advice. Lending is a natural evolution of LMN. Once you establish a budget, you realize that you need money to expand with equipment.
Schaubel adds that much depends on industry knowledge and trust.
“Our customers tell us that the trust component is what they prefer,” he says. “We’re not going to look askance at you if you say you make Christmas lights. It’s not just about lending money; we care about the success of the landscape industry.
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