Companies in the office cleaning industry usually begin life as small, owner managed and operated enterprises. The owners of these companies tend to be ambitious go-getters who are big on enthusiasm and entrepreneurial spirit but short on working capital. The potential for growth is limited only by the ability of business owners to maintain sufficient cash flow from customers paying their invoices on time.
Effects of Slow
Customers who are slow to pay place a burden on a company and make it difficult for the small- or medium-sized cleaning service to meet financial obligations including:
- Paying staffing costs
- Meeting current rent obligations on buildings or equipment
- Purchasing cleaning chemicals and supplies
- Funding new growth opportunities requiring an infusion of capital
- Financing advertising and promotional materials to expand the customer base
Customers, particularly large companies, are accustomed to receiving payment terms on their invoices as a condition to awarding a cleaning service contract. Cleaning businesses with substantial cash reserves can afford to accommodate customer requests to extend payment due dates for 30 to 90 days beyond the invoice date. Offering credit terms might be the deciding factor in winning a big cleaning service contract, but the financial demands such a contract places on your business could be more than you company’s cash flow can handle.
Improving Cash Flow
Factor Funding Co. has been designing cash flow management solutions for companies of all sizes in industries throughout the country. Cleaning service factoring takes your company’s outstanding invoices that might not be paid for months and turns them into instantly available cash to be used in your business.
Unlike bank financing involving a lengthy, time-consuming application, underwriting and approval process, invoice factoring begins with a telephone call to a Factor Funding Co. cleaning service factoring specialist. As the owner of a cleaning service company, you do not have the time needed to complete complicated loan applications and rummage through file cabinets to find financial statements and other records required by most traditional lenders.
Invoice factoring starts with you providing us with copies of your outstanding invoices. Following a quick review by Factor Funding Co, a percentage of the invoice balances is paid to you. When your customer pays the invoice to Factor Funding Co, you receive the remaining balance less the amount advanced to you and a small fee. You can focus on running and growing your business without worrying about making telephone calls or sending letters to collect unpaid invoices.
GET IN TOUCH WITH FACTOR FUNDING
What better way to finance your business than with an expert with decades of experience helping other cleaning service business owners grow their businesses?
Running a business isn’t easy, and figuring out financing on your own is even harder. Waiting around won’t help you pay your expenses.
Reach out to our financing experts to chat about your financial needs and learn how we can partner with you to help you achieve your business goals. Here’s to your success!