Get Paid Faster with Factoring for Janitorial Service Providers
Commercial building managers in the public and private sectors rely on janitorial service providers to keep their facilities clean and functional. However, when those clients take 30 days or longer to pay outstanding invoices it can create a cash flow crunch in which a janitorial company cannot operate effectively. Fortunately, there is a solution. With invoice factoring for janitorial services, you can secure the working capital you need to keep every client up and running.
How Does Invoice Factoring for Janitorial Services Work?
Receivables factoring for janitorial service providers is a simple series of transactions that convert your unpaid invoices into cash you can use to run your business. When you are approved for factoring, you can submit invoices of any amount at any time to maintain adequate working capital.
A typical janitorial factoring transaction looks something like this:
- Perform janitorial services for your customer. Send them an invoice for the work and submit a copy to the factoring company.
- The factor will verify that you completed the work and that the invoice is accurate; they will then send you up to 90 percent of the invoice amount within 24 hours.
- Continue working – serve the same customer or others, invoice them and submit invoices to the factoring company as necessary.
- In the meantime, the factor will work with your customers to collect their open invoices. When the invoice is paid, the factor will send you the remaining funds minus a small factoring fee.
There are no limits to how you can use the cash you receive from factoring invoices. You can fund payroll to hire new staff to cover larger buildings or accept new clients; purchase equipment and supplies to complete your work more effectively; or introduce new services to increase your revenue. Because ar factoring is based on your sales, everything you put into your business will open up even more cash flow potential to grow further!
Learn more: What is a factoring company?
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Benefits of Receivables Factoring for Janitorial Service Providers
Factor Finders’ nationwide network of factoring partners are committed to helping your janitorial company thrive through far more than a simple transfer of funds. Take advantage of the assorted benefits of a receivables factoring relationship.
Office management support
Your janitorial company depends on income producing activities to generate revenue, the most important of which is actually providing janitorial services. Your factoring company will handle a number of your company’s administrative tasks so you can stay focused on completing jobs. Expertise in the janitorial industry allows your factor to handle issues with workers’ compensation, payroll and A/R management to meet your standards and those of the industry. Many factors will also complete credit and background checks on your customers for no additional fee.
With cash on hand, you can negotiate with your suppliers to receive discounts for fast payment or bulk orders. Keep more money in your pocket!
No long-term contracts
Invoice factoring for janitorial services, while an excellent financing solution, may not be the right choice for your company permanently. Don’t stay trapped in a long-term contract; instead, sign a six-month or one-year agreement and regularly evaluate the relationship so it continues to work for you as long as you need it.
Qualify with poor credit
Even if your company has been declined for traditional bank loans or lines of credit, you can still qualify for a receivables factoring program. Janitorial factoring companies evaluate their funding decisions on your customers’ creditworthiness – as long as you are providing services to reliable customers, we can find the right program for you.
Receivables Factoring for Janitorial Companies
Call 855-322-8671 or request an online quote.
Start Invoice Factoring for Janitorial Services
Begin factoring your janitorial services right away, whether you serve commercial or residential buildings, schools, or even government facilities. If you invoice other companies for your work, you’re already well on your way to being approved.
The application and underwriting process is simple and in most cases can be completed in as little as 3 to 5 business days. All you need to get started are:
Articles of Incorporation
Copies of invoices you wish to factor
Current customer list
List of outstanding invoices