The service industry has exploded over the past few years. Conservative estimates place the combined revenue of the entire service industry at close to one trillion dollars annually, though most realists would place figures over that amount. However, despite high sales and revenues, service companies have a difficult time securing loans and other types of financing needed for general growth or to expand into new markets.
Service Companies and LoansService companies provide intangible products and services. Trucking, Software as a Service (SaaS), janitorial companies, legal firms, and more fall under the umbrella of the service industry. These businesses provide intangible goods and services, and are not direct manufacturers. Since many of these companies do not provide physical goods and use leased equipment, they are able to lower overhead expenses while increasing sales. Unfortunately, the lack of fixed assets means ther
Debt Has a Ripple EffectGrowth is about reaching new milestones, tapping into new markets, and rolling out new products. Traditionally, growth projects involve taking out loans, which impact credit scores and place debt on the balance sheets. The balance on the loan is repaid from a portion of the post-growth revenue. Yet growth combined with debt is a big risk. Even if sales are low during that period immediately following expansion, loan payments must be made or else the business is in danger of defaulting. At the same time, manufacturers still have to maintain overhead expenses, payroll, maintenance on equipment, and more. Frequently, manufacturers end up scaling back their plans for growth to figure ho
Debt-Less Cash FlowThis process is not a loan,