The demand for service companies has skyrocketed over the past year. Among those, maintenance companies have seen increased orders and contracts from both residential and corporate clientele. While many maintenance companies do not have the real estate or other assets to get traditional financing, there are ways to get the funding necessary to meet the demands of a growing customer base.
Maintenance Companies Rely on Cash Flow
A healthy cash flow is the key to long-term success for all maintenance companies. But with contracts and invoices, waiting on payment from customers can place a severe strain on cash flow. If there were a way to receive payment at the rate of delivering services, maintenance companies could grow exponentially without having to take out short-term loans for extra working capital. Fortunately, there is a way to unlock the potential of your cash flow without taking on unnecessary debt.
Boosting Cash Flow
Most maintenance companies provide services based on contracts and issue invoices with staggered payment schedules of a month or longer. Waiting 30 days or more to receive payment from clients not only places a strain on cash flow, but can keep maintenance companies from buying supplies, marketing to potential clients, or even making payroll. By using factoring services, those unpaid invoices are immediately converted to capital. This supercharges your cash flow and allows you to sustain and grow operations. The maintenance industry relies on providing services instead of goods, so building up capital reserves is necessary for long-term success.
Sidestepping the Debt Trap
Most entrepreneurs in the maintenance industry feel the only way to get capital is through debt-based loans. But with higher accessibility requirements for loans and increasing interest rates, traditional financing methods are ultimately cost-prohibitive. The maintenance industry needs a solution that is flexible while not impacting credit ratings or putting debt on the books. Invoice factoring is just such a solution, and gives maintenance businesses the freedom to take advantage of growth opportunities during this economic uptick.
New Century Financial provides factoring services to businesses within the service industry. Whether you own a maintenance company, janitorial business, or any other operation that provides services, we can help to boost your cash flow to give you the capital you need, debt-free. Contact our offices and get started today!