Anyone that runs a business on a day-to-day basis understands the need for continual cash flow. It is the lifeblood of business. With banks continually tightening the belt, many savvy janitorial business owners are turning to alternative means when it comes to generating a consistent cash flow.Did you know it’s possible to get money for your unpaid invoices today?
Invoice Factoring gives you the ability to turn your accounts receivable into immediate cash. Get the details here.
Here are 7 Important Reasons to Consider Invoice Factoring
1. Get Your Money Fast
If you have experienced the frustration of applying for bank loans or lines of credit – a process that can take weeks – you will appreciate the speed with which an invoice financing arrangement can be implemented. Because of the minimal amount of paperwork that is required, you can typically be up and running in just a few business days. Once the relationship is in place, you can access cash from your outstanding receivables very quickly. Money is usually forwarded the same day you submit the invoice.
2. No Additional Debt
This is one of the most popular reasons business owners of janitorial companies mention when explaining why invoice financing is appropriate for them. The funds issued to your company is not a loan. It is not debt. It’s your money…. you’re just getting it earlier than you normally would. But there’s no additional debt liability added to your business balance sheet.
3. Flexible, Ongoing, Access to Cash
Financing your invoices can help commercial cleaning companies meet almost any of its financial obligations. The additional working capital will assist you with purchasing inventory, products, and materials from your vendors. It takes away the stress of making payroll. If you take advantage of invoice financing, you will no longer be giving your customers control of your cash flow. You will have 100% certainty of when money flows into your business.
4. Cost-Effective
An arrangement to finance invoices is similar to getting paid COD. It is more attractive than the alternative of a 60 or 80 day credit extension to a customer that many net 30 sales tend to become. When compared to other options like traditional bank loans, credit lines, or liquidating assets to make payments, the costs of invoice financing can be minimal.
5. It Grows with Your Business
Invoice factoring is the only source of financing that grows with your sales. Unlike a traditional bank, there are no “fixed” lines of credit. You do not have to come back and re-qualify for a larger line. As your receivables grow, so does the availability of working capital. This allows you to continually be in a position to meet increasing demands for our products and services.
6. Increase Revenues
The availability of additional working capital will change the way you go after new business. You will no longer feel like you are pressing on the gas and brake pedals at the same time. Your company will be in a position to take on new contracts and jobs without the worry and stress of wondering “where the money is going to come from”. You can also increase sales by offering more attractive payment terms to customers. Larger customers often means a longer waiting time before you get paid on charged sales, however, invoice financing means you have more control and greater access to your cash.
7. Peace of Mind
Invoice financing provides the peace of mind that debts and obligations will always be paid. Instead of wasting time worrying about cash flow, business owners are able to focus their attention on customer service and growing sales.
Visit www.webbcommercialcapital.com to get started today. You can also contact Dave Webb at 239-205-6504 or at dave@webbcommercialcapital.com.
