The janitorial service companies field has been growing in recent years as more and more commercial buildings and facilities have outsourced their maintenance duties. With this growth has come more competition, both for new customers and new workers.
One challenge that all janitorial service firms face is the need to meet what is often a large payroll, along with other financial obligations, such as bills for cleaning products, equipment, transportation, and rent. The problem comes in when their customers take weeks or months to pay their invoices. A factoring company can purchase your invoices and turns those accounts receivable into ready cash. By factoring your invoices, you can ensure that you always have a positive cash flow.
Factoring is different from traditional funding methods: you don’t incur debt and you aren’t judged on your past credit history or business collateral. Factoring has proven popular among janitorial services companies because it enables them to take on larger contracts and customers with longer payment terms. Factoring can help them facilitate the growth of their company.
Factoring Tips for Janitorial Service Companies
Look for a factoring company that has experience in working with janitorial services companies or staffing companies. You want to work with knowledgeable professionals who understand your industry.