If you are running your own janitorial services, you don’t need anyone to tell you why you need some sort of available cash on a regular basis. You already know that. But what you may not know is that a bank is not your only option when it comes to getting the cash you need. In fact, a bank loan may not be your best option at all.
Why a Bank Loan May Not Suffice
There are several reasons why banks are not exactly reliable lenders these days. That’s because the economic recession has spooked them, to such a degree that many banks are somewhat “risk-averse” when it comes to loans. While they have improved their tight-fistedness lately, you better have one heck of collateral to put up if you want a loan, and you better have a damn good credit rating.
Then there’s the fact that bank loan applications take a long time to process. You know that you need the money now, but they don’t know that or they don’t care. They will proceed in their own good time.
If you want a convenient solution to your problem, then factoring may be your best option. The application is extremely simple and quick, and you know right way if your application has been approved. What’s more, you have a much better chance of getting approved.
So how does factoring work? The concept is very easy. You have accounts receivables, but you will receive the payment due to you in 30 to 90 days. Depending on the circumstances and the company, you get about 80% of the money due to you much more quickly. You may even get your money in a week or even in a few days. Then you get the balance when the invoice is fully paid, and the factor gives you the rest minus their fees.
A Look at Janitorial Factoring Services
But the above is simply a generic description of how factoring works. What you really need is a factoring service that’s geared specifically for janitorial companies. Janitorial factoring services offer several advantages over those generic factoring services. That’s because the factors have already worked with businesses in the janitorial industry, and they know what to expect.
The advantages here include:
- Relevant references. You’re not the first company in the janitorial industry to make use of their services. That means they can give you references which are in the janitorial industry, which can give you a much clearer idea if the factor can really help your business.
- The process is geared to match standard janitorial industry practices. You don’t have to explain to these factors why some things are done in a particular way in the janitorial industry. The factor already knows this which makes the entire process much more efficient. The two of you are on the same page already.
- They can do investigative work for you. These factors are already familiar with some of the companies that require janitorial services. That means when you have a new client, your factor can tell you if they are a good company that actually pays their bills or not.
If you own or manage a janitorial company and you want ready and steady cash, then you need to go to a factor which specializes in helping companies like yours. The janitorial industry is always changing, and you need help to weather the storms that come your way. It’s as simple as that.