Whether you’re just starting out or looking to expand your nursery, securing the right lending is a key step. It might sound daunting, but understanding the common types of lending can help make future planning easier.
What are the options?
Lending isn’t one-size-fits-all but there are common types of financing that nursery businesses use. Here are a few examples:
- Business loans: Banks and other lenders love a good business plan! If you can show them how you’ll use the money and pay it back, you could secure a business loan to help grow your brand.
- Private equity: As private equity funds move into the sector, we are seeing a number of owner-operators partner with these funds to build and grow their businesses.
- Angel investment: Lots of businesses look to angel investors to grow their business and the nursery sector is no different. By partnering with wealthy individual investors, owners can benefit not only from money, but also experience in many cases.
- Seller financing: In many cases sellers are willing to agree to terms that allow their consideration to be paid over time following the sale. This allows for less money required up front.
- Government grants and loans: The government sometimes helps small businesses (like nurseries!) through a variety of grants and loans.
It’s always worth checking if you qualify for any existing options that the government is running.
Get your paperwork in order
Before you seek investment of any kind, make sure your paperwork is in perfect order. Regardless of the type of financing, most lenders are going to want to see:
- A solid business plan: You need to show them how you’ll run your nursery, bring in the money, and—most importantly—how you’ll pay them back. Be clear and be realistic.
- Financial statements: If your nursery is already up and running, lenders will want to see how it’s been doing. Keep your accounts in order and be ready to share them at any moment.
Be realistic about repayments
It’s tempting to go for the biggest loan on offer, but make sure your business can actually handle paying it back. Stretching your finances too far could be catastrophic for the success of your nursery. Be honest about how much you can afford to repay each month.
Seek professional help
We know navigating the world of loans can be overwhelming. When looking for investment for your business, having the right professional support will make a difference. At Birdi & Co, we’re experts at helping nursery owners secure the funding they need and know exactly what to look out for.
