There are several good reasons why janitorial services are thriving these days. The most common reason is that just about every place of business needs to be maintained and cleaned, but it doesn’t always make sense for a business to have its own cleaning staff. It’s too much trouble to hire janitors on a permanent basis, especially when the company also has to buy cleaning supplies and equipment as well.
But while there are good reasons for you to start a janitorial service, it may be difficult to maintain its growth when you’re experiencing cash flow issues. You need the cash to meet hire new workers, meet payroll, buy and maintain cleaning appliances, and buy cleaning supplies.
Without the cash flow, you may find yourself walking away from future contracts because you don’t have enough money to hire new workers. And what’s more, you may even have problems with your current contracts since you need to hire new workers for those who quit working for you.
If you’re having cash flow problems, then janitorial factoring services may be the answer to your situation:
- Factoring services are very easy to get. The approval can come in just a single day, unlike bank loans that take such a long time. The approval for factoring services is also much more likely compared to bank loans. That’s because there’s no need for you to have excellent credit, and you don’t really need to put up any collateral for a loan. Setting up the factoring line takes only a week or so.
- Factoring gives you your own money now, instead of having to wait. Your customers may take 30 days (or more) to pay you for the services your workers provide. But your daily and weekly expenses won’t wait at all. This causes cash flow problems that factoring solves easily.
What’s more, the cash advance you get is not a loan at all. It’s your own money, but you only get it in advance. This means that such arrangement won’t affect your credit.
- The factor takes over the collection duties. It’s hard enough to hire sufficient numbers of janitors to meet the demand. So it’s convenient for you when the factor takes the responsibility of collecting the payment from your customers. You don’t have to hire staff for your own collection department.
- The factor doesn’t tell you how to spend the financing you get. They don’t tell you if you should spend it on growth, new facilities, or hiring new workers. After all, it’s your You spend it on whatever you like.
In contrast, banks often insist that you spend the loan they provide in the manner they prescribe. That’s because it’s the bank’s money, and the bank wants to make sure you’re using the money properly so that you’ll be able to pay them back.
Banks loans may be good for your business, but it’s not always easy to get one. On the other hand, it’s easy enough to get factoring services whenever you need it, so that your company can grow and help many other companies with their cleaning requirements.