Funding for the Commercial Cleaning Service Industry
Summary
Janitorial Company factor financing helps remove the burden of cash flow gaps. Cleaning factoring overcomes the extended credit terms janitorial customers demand. Janitor factoring financing is dependable for injecting steady liquidity into your cleaning service venture. Janitorial funding helps growing businesses focus on sales, marketing, and operations rather than collections, bad debt control, and business financing.
Cleaning Company Factoring
Commercial Cleaning Service Industry Financing
The global contract cleaning market is worth over $250 billion and is expected to hit $329 by 2026 (Globe Newswire). Janitorial companies providing services on extended credit terms have rigorous monthly overhead to cover, including labor and staffing, supplies, and equipment. With immense opportunities, the commercial cleaning industry is saturated with franchisees, startup cleaners, and small players.
Lack of access to financing solutions typically hurts commercial cleaning companies looking to expand operations or with increased resource demands. Cleaning factoring financing is an alternative form of funding for janitorial cleaning companies to cover payroll financing and business expenses.
Janitorial Factoring for Startups and Fast-Growing Commercial Cleaning removes the burden of securing business funding.
Bankers Factoring understands the various segments and markets within the commercial cleaning industry. We have worked with work with janitorial and cleaning service companies in the following areas:
- Floors and Carpets
- Day porters and building service
- Commercial office building
- Window cleaning
- Medical and Hospital facilities
- General facility services
- Corporate Campus
Janitorial industry funding does not need to be difficult for startups, small businesses, and owned and operated franchises. Bankers Factoring provides fast working capital to commercial cleaning janitorial companies that do not yet qualify for bank loans or lines of credit. Contact Bankers Factoring to discuss a commercial funding plan for your cleaning company.
In this article, we cover:
- Janitorial and Cleaning Industry Financing
- Commercial Cleaning Company Factoring Financing
- Improve Cash Flow with Factoring Financing
- How Does Janitorial Factoring Work?
- What if my commercial janitorial cleaning company only invoices once per month?
- Bankers Factoring Janitorial Industry Factoring
Janitorial and Cleaning Industry Financing
Funding for cleaning service companies comes with capital-intensive activities. The main expenses and costs for commercial cleaning companies include staffing, materials and supplies, equipment, vehicles, and overhead expenses. It can become difficult for rapidly growing janitorial companies with large commercial clients to keep up with the weekly volume of costs.
Running out of funding is expected for startups and small cleaning businesses. Janitorial factoring financing helps remove the burden of cash flow gaps. Cleaning factoring allows overcoming the extended credit terms janitorial customers receive. Instead of waiting for 30, 60, or even 90-days for customer payment, factoring financing accelerates cash flow funding today.
Learn more in our previous article, “How to Start and Finance a New Cleaning Company.”
Commercial Cleaning Company Factoring Financing
Factoring financing is a quick cash flow funding process transacted by selling unpaid invoices to Bankers Factoring, a factoring company. Commercial cleaning service contracts typically require extended payment terms, which need the cleaning company to have working capital. Companies lacking the funding to keep up with business demand utilize cleaning factoring financing to overcome cash flow obstacles.
Offering credit terms with factor finance often improves the janitorial company’s ability to win a large service contract. Factoring financing provides cash flow funding that enables commercial cleaning janitorial companies to offer such significant terms. Without janitorial accounts receivable (AR) financing, company cash flow would constantly be negative.
Improve Cash Flow with Factoring Financing
Cash flow management is not the strength of janitorial company operators. Still, with cleaning factoring financing, your unpaid invoices turn into same-day AR financing. Bankers Factoring designs a working capital plan to fund your commercial janitorial business and improve cash flow. Factoring financing is reliable for injecting steady liquidity into your cleaning service venture.
Cash flow becomes tight in the janitorial industry when cleaning companies have shorter payable terms than their extended customer credit terms. When you have to pay employees and vendors months before your customer pays, it causes funding problems. Factoring financing helps companies unable to secure traditional financing improve cash flow.
The total time from submitting an online funding application to cash financing is 3 to 5 days. Factoring invoices does not take months to provide commercial funding like bank financing. We help unbankable businesses secure fast working capital.
How Does Janitorial Factoring Work?
Invoice factoring begins with your funding application which provides us with your current AR invoices and AR aging summary report. We provide a factoring line based on a couple of crucial pieces of data:
- Your average monthly receivable volume and total value
- The credit profile of your customers
- The general risk associated with the commercial cleaning industry
- Completed Funding Application
Once our team of funding specialists approves your cash flow financing program, we provide an initial cash advance up to 93% of your total AR value. The second cash disbursement in your cleaning factoring agreement is the rebate or your remaining balance less the same factoring fee.
Janitorial factoring helps growing businesses focus on sales, marketing, and operations rather than collections and business financing. Bankers Factoring acts as your credit and accounts receivable department. We create new efficiencies within your accounting and finance departments.
Learn more in our previous article, “What is Invoice Factoring? How does it Work?”
What if my commercial janitorial cleaning company only invoices once per month?
Once per month billing is no issue with Banker Factoring Janitorial Company Pre-Billing Factoring. Commercial cleaning clients get funded weekly even when they invoice their customer, the account debtor, once per month.
When your commercial janitorial company renders services, create an invoice to factor your delivered services. The prebilling process eliminates the two-month wait for payment after providing cleaning services.
Bankers Factoring Janitorial Industry Factoring
Bankers Factoring provides AR factoring financing in the competitive commercial cleaning industry. Throughout the COVID era, companies, properties, and facilities have increased their commercial contract cleaning services. Small cleaning companies, startup janitorial firms, and rapidly growing businesses needed fast funding solutions. Keep up with weekly payables with cleaning company payroll funding. Not-yet bankable commercial janitorial companies can overcome cash struggles with Bankers Factoring invoice financing.