A 15-year-old landscaping company generating $10 million in annual revenue is accelerating its growth strategy after securing $750,000 in funding from Fora Financial.

The company entered 2023 aiming to shift away from smaller residential projects toward larger municipal and commercial contracts, a move designed to diversify revenue and position the business for more than 50% year-over-year growth. However, the transition created immediate liquidity challenges, as upfront costs for larger jobs outpaced cash flow from existing receivables.

Seeking capital without diluting ownership, the company explored traditional bank financing but encountered delays and insufficient funding options. Having previously worked with Fora Financial, the business returned to the lender for a faster, more flexible solution.

Initially pursuing $250,000, the company ultimately secured a $750,000, 12-month financing package after learning it could reduce its cost of capital through early repayment. The increased funding enabled the company to hire additional staff and purchase materials needed to pursue multi-million-dollar contracts.

With the new capital in place, the company has incorporated financing costs into its project pricing and is on track to deliver its strongest quarterly performance in early 2024, while maintaining margins to support continued expansion.

The transaction underscores the importance of establishing lending relationships early, particularly for small businesses navigating rapid growth and evolving capital needs.

This article was produced with assistance, in part, from AI.