The maintenance services industry continues to grow as more commercial buildings, apartment complexes, and other facilities are outsourcing their maintenance work. More maintenance companies are starting up and established firms are taking on more customers. Whether they are new or old, these companies share the same financial challenge. They must meet a growing payroll and pay fixed expenses, but they have to wait for 30, 60, or even 90 days for their customers to pay them.
A factoring company can bridge that gap for maintenance service firms by purchasing their invoices and paying them a large percentage of that invoice upfront for the work they have already completed. The maintenance company can use those funds for payroll, but also for cleaning products, equipment, transportation, rent, and marketing.
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 enables maintenance companies to take on larger contracts and customers with longer payment terms. Factoring can help them facilitate the growth of their company.
Factoring Tips for Maintenance Companies
Look for a factoring company that has experience in working with maintenance companies or staffing companies. You want to work with knowledgeable professionals who understand your industry.