Janitorial Factoring
How can we Finance Janitorial Companies?
We understand the working capital needs in the janitorial service industry. The larger the customer you are servicing, the longer it seems to get paid. The more customers you take on, the larger your payroll becomes and the more it will cost you in supplies, salaries and in new equipment.
Obtaining financing in your industry isn’t always easy and it is almost never for the amount your business needs. How can you access working capital for your company? You can get a bank line of credit (if you have great credit and if you have two years of business tax returns showing a lot of income), this isn’t for most businesses. You can accept credit cards, but many businesses do not want to pay by credit card. If they do, the typical fee for accepting a credit card can be close to 4% and you will have to wait five days for the money to hit your account. You can take a business merchant cash advance (MCA) but the interest rate on this can be close to 40%, you will pay points, and the MCA automatically pulls this money out of your account every day. It is an option but it’s not a good one. Last by not least, you have invoice factoring. Very fast and easy to qualify, your fundings are within 24 hours of you selling us an invoice, the factoring fee is less than accepting a credit card and you are not taking on any new debt. When you invoice factor your accounts receivable you are selling your open invoices at a discounted rate for immediate cash.
Are you customers paying you in 30 days? If not, do you still have to pay your staff, purchase products and pay your monthly expenses; regardless if you are paid in a timely manner?
There is no reason to wait to get paid, you can sell your account receivables today and get paid on them tomorrow.
The Janitorial service industry is very labor intense. There are high expenses, in labor costs, products and transportation and it’s a very competitive industry, with regards to the prices you can charge. Your expenses are going up daily, inflation is putting a big hurt on companies and in many cases, you are operating on an annual agreement with your customers. In many cases, your costs are going up, but you cannot pass these costs to your customers. The price of gas is much more than it was a couple of years ago, which hurts your bottom line. Your customer is feeling the pain too, you might be experiencing longer turn-around times to get paid than in the past. If your cash-flow is causing you problems then your solution can be to factor your invoices, known as invoice financing. You simply sell us your invoices at a small, reduced amount and we will fund you within 24 hours, you no longer have to wait a month or more for your customers to pay you.
How can Janitorial Factoring help Grow your Company?
- By allowing you to hire new employees, knowing you are always one day away from being funded.
- Invoice Factoring is not a loan, you will not incur another monthly expense
- Your personal credit is a non-issue, approval and access to immediate cash is around the corner
- You can grant longer credit terms to potential customers, while you still get paid within 24 hours
- You will have working capital to pay and grow your business
The process of onboarding with Alliance One takes about five business days, after you you sign the factoring agreement and provide us with the simple documents we need to get your account approved by one of our in-house underwriters.
Janitorial factoring turns your aging invoices into instant cash, making your life much easier and headache free. You no longer have to wait 30, 60 or even 90 days to be paid on your accounts receivable.
Invoice factoring is only business to business. If you are invoicing other businesses or property preservation companies / management companies, we can help you.
HOW INVOICE FACTORING WORKS
