FINANCE

By Gerri Detweiler

While you ’ re focused on daily business tasks , from sales strategy to managing inventory to training staff , the work of building business credit might seem like just another task to push down the to-do list . Maybe it ’ s not even on your radar .

Investing time here can make running your business significantly easier . Here are five reasons why landscape business owners and OPE dealers should prioritize building business credit in 2025 :

1 . Improve supplier relationships

One of the most tangible ways to use business credit is to get better terms with suppliers . It ’ s common for vendors and suppliers to check business credit before extending net-30 or net-60 payment terms . A strong credit profile can help your business get more preferential terms that directly impact cash flow . As your business establishes a track record of reliable payments and healthy credit metrics , suppliers are more likely to extend longer payment terms or increase credit limits .

This flexibility can be crucial during peak seasons when you need to stock up on inventory or supplies . Additionally , good business credit can help you negotiate more favorable bulk purchase agreements .

OPE manufacturers may also consider business credit when evaluating dealers for new product lines or exclusive territory rights . And when a manufacturer launches a new product line , dealers with strong business credit may be given priority consideration .

Think of good business credit as a tool that strengthens your position in the supply chain , helping you maintain optimal inventory levels while preserving cash flow for other business needs .

2 . Weather seasonal cash flow challenges

The OPE and landscaping industries have large seasonal fluctuations , depending on your geography . A strong business credit history can help your business survive seasonal dips .

Lines of credit can also help your business take advantage of early-buy programs from manufacturers , ensuring adequate stock levels before the spring rush . This becomes especially important as lead times for equipment and parts remain unpredictable , and having inventory on hand can mean the difference between making or losing a sale .

Good business credit provides the flexibility to keep your core team intact during seasonal inconsistencies , avoiding the costly cycle of layoffs and rehiring . Whether you had an unusually long winter or an unexpectedly rainy spring , your ability to retain skilled technicians and sales staff during these downturns often depends on maintaining consistent payroll .

Additionally , strong business credit provides a safety net for unexpected equipment repairs or replacement . In an industry where service equipment or replacement vehicles can cost thousands ( or tens of thousands ) of dollars , having emergency funding options through established credit lines ensures that equipment failures don ’ t bring your operations to a halt .

3 . Access better financing

The OPE industry is experiencing rapid technological changes , from autonomous mowers to electric equipment . Whether you ’ re upgrading your equipment or fleet , expanding service offerings , or just trying to manage cash flow , your business credit profile may directly impact the financing terms available to you .

New equipment often requires significant upfront investment , which is best handled through leasing or financing . Business credit may help you access equipment loans and leases with lower interest rates , longer terms , and more flexible payment structures .

Beyond equipment , solid business credit helps secure financing crucial for business operations . SBA loans and traditional bank loans , for example , may require both business and personal credit checks . Inventory financing may be more accessible , allowing you to stock up on parts and new models without depleting cash reserves .

For landscape contractors , project financing helps bridge the gap between job costs and customer payments , particularly valuable when taking on larger commercial contracts . As the industry sees increasing merger and acquisition activity , good business credit can help there , too . Whether you ’ re considering expanding your service territory , adding new product lines , or acquiring another business , lenders often carefully evaluate risk . Good business credit is one way to demonstrate that your business is less risky .

20 OPE + March 2025 www . OPE-Plus . com