As with businesses in many industries, cleaning and janitorial companies often face cash flow challenges. Whether
your commercial cleaning company is newer or has been around for years, it’s important to find financing solutions that help you thrive and grow. Invoice factoring is an effective way to boost your cash flow quickly.
How Invoice Factoring Can Help a Janitorial Company
To grow a commercial cleaning company, you need working capital. Many businesses fail or remain stagnant due to cash flow problems. Inconsistent cash flow can make it hard to make payroll, purchase essential items, and keep up with regular expenses associated with running your business.
If your business depends on collecting invoices, your cash flow depends on your customers paying promptly. Invoice factoring lets you collect payment on invoices right away, at the time of invoicing, rather than waiting for your clients to pay. Receivables factoring can be used in a number of ways, helping you cover expenses such as:
- Meeting payroll. It can also help you hire more help to accelerate growth.
- Equipment — Your business may need a new vehicle, cleaning equipment, supplies, uniforms, or other items.
- Insurance premiums.
- Funds for marketing and advertising, which can be essential for expanding your business.
If your customers are commercial buildings and businesses, they most likely pay invoices monthly. This can cause cash flow difficulties between payments. If clients are late paying, you’ll be facing even more pressure. Factoring invoices helps businesses overcome this kind of uncertainty.
Advantages of Invoice Factoring Over Traditional Financing
Invoice factoring provides a simple solution to cash flow challenges faced by cleaning companies, converting unpaid invoices into immediate cash. Here are some critical benefits of invoice factoring.
- Easier to apply for and qualify for than loans. Traditional lenders favor businesses with a long track record and collateral. Factoring companies base approval mainly on your customers’ credit rather than yours. They are open to working with any business that invoices its business customers.
- While it can take months for loans to be approved, the application process is simple for invoice factoring and you can often receive funding within days.
- No debt is created. Better for your credit score and balance sheet.
- Bad debt protection. If you work with a company that offers non-recourse factoring, you’ll get credit guarantees on factored invoices. You aren’t responsible for unpaid invoices.
- Save money on administrative costs. When you factor invoices, your customers send payment directly to the factoring company. This reduces the time and effort you spend on collections.
Why Riviera is the Best Choice For Janitorial Companies
Riviera Finance provides factoring and other back-office support to companies in many industries, including cleaning and janitorial services. Some advantages we offer include:
- Experience and stability. We’ve been in business and under the same ownership since 1969 and have turned a profit each year.
- Convenience. You can access your account 24/7 with our online account management system.
- Fast service and response time. We have 21 locations where you can reach someone in person or by phone. We offer the fastest cash turnaround in the industry.
- Maximum cash advances. We offer some of the highest rates in the industry.
To learn more about how invoice factoring can help your cleaning or janitorial company improve cash flow, contact Riviera Finance.
