In the janitorial business, it’s vital to stay competitive. This often requires a steady cash flow to recruit and hire quality workers, improve services, market your business, and keep up with new technology. In addition to this are your regular operational expenses such as payroll, purchasing of supplies and maintenance of equipment and vehicles. Having a strong uninterrupted cash flow will allow you the freedom to take on additional growth opportunities. This is where invoice factoring for janitorial services is a great solution.
How Invoice Factoring For Janitorial Services Can Help
Larger janitorial companies are often not as constrained by their cash flow because they either have sufficient cash reserves, or they have access to capital from lenders. If you have a janitorial business and are having difficulty due to periodic cash flow shortages, a bank likely won’t be able to help. Invoice factoring provides access to a financing option that may be better suited for your needs, especially as it can be a struggle for small janitorial businesses that have to wait to get paid.
Invoice factoring for janitorial services also functions as an excellent form of financing because your personal credit doesn’t matter. It relies on the creditworthiness of your customers since they owe the invoice amount. With a simple transaction, you can sell an invoice to a factoring company that will advance your business up to 80% of the value of the invoice. The remaining balance is held in reserve, and once your customer pays the invoice (under the original terms), you will then receive the remaining balance less any factoring fees.
Invoice Factoring: A Peace of Mind
Receivables factoring is very quick as it takes about a week, and you can repeat the transaction as often as necessary. Working well for any situation, either on a sporadic basis as needed, or for long-term supplementation. As long as you have invoices, you have access to cash advances through your factoring account.
Smoothing out cash flow with quick capital will ensure you can avoid worrying about paying the bills. In order to focus on your competitive position, make a factoring account part of your cash management strategy now to have better control over the outlook of your business.