Get Funded Weekly even with Once per Month Billing
Weekly Payroll versus 30-60 Day Terms
The Janitorial and Commercial Cleaning Industry is worth more than $250 billion annually in the US. Providing tremendous upside for entrepreneurs and startup cleaning companies looking for new janitorial customers. Cleaning Company business owners often take on customers with extended payment terms causing cash flow issues. Many janitorial businesses fail early on from poor financial management. Bankers Factoring can help with janitorial company payroll financing.
Bankers Factoring helps Janitorial Cleaning Companies with cash flow solutions without going to the bank. Our janitorial clients need working capital for payroll funding, supplies, and overhead. We remove the burden of illiquidity through invoice factoring funding for monthly invoicing.
Learn how your Janitorial Company can secure weekly payroll Funding for Monthly Invoicing and overcome your cash nightmares.
What is Prebilling Factoring for Monthly Invoicing?
Invoice factoring, also called Accounts Receivable (AR) Factor Financing, is a transaction where a Janitorial Company sells its open invoices to Bankers Factoring. Bankers Factoring cash advances up to 93% of the invoice value to the cleaning company.
For example, your Janitorial Cleaning Company invoices its commercial customer once per month with NET30 terms. However, you pay your cleaning company staff weekly for their services. You can have 3-6 weeks of payroll out before you see a payment. In this case, the Janitorial Company business owner must have the working capital to cover 60-days or more of payroll funding and operating expenses.
With Invoice Factoring for Monthly Invoicing, the Janitorial Company can sell its weekly invoices to Bankers Factoring before submitting their monthly invoice to the customer (account debtor). By selling the open receivables, your company has immediate funding available. This process is called Pre-billing Factoring.
What is Janitorial Company Pre-billing Factoring?
Prebilling Factoring is a tool for cleaning businesses to factor invoices before submitting their monthly invoice to the customer. For instance, large call centers, not-for-profit organizations, and other large public entities require their cleaning company to submit monthly invoices. By prebilling Factoring, our clients can access their immediate working capital to keep up with weekly payroll.
Prebilling Factoring helps Janitorial Company business owners retain employees, acquire new customers, and keep up with payroll and other business expenses.
Visit our previous article, “How to Finance a Janitorial Company,” to learn more.
How Does Once Per Month Invoice Factoring Work?
Once your Janitorial Company services are rendered to your customer, generate an invoice to factor your completed work. This prebilling process eliminates the wait to only factor your Janitorial Cleaning Company invoices once per month. With our AR Insurance, our once-per-month invoice factoring comes with bad debt protection.
Once-per-month invoice factoring helps Janitorial and Cleaning businesses with cash flow solutions. Prebilling invoice factoring solves your once-per-month invoice customers. Eliminate the wait for 60-days or more to get paid for rendered services.
Visit our previous article, “Same Day Invoice Factoring,” to learn more about once-per-month invoice factoring.
What is the Prebilling Invoice Factoring Process?
Submit weekly prebilled invoices and have a consistent cash flow for your cleaning business growth plans. The process of invoice factoring is straightforward. The overall prebilling invoice factoring process is unlike the traditional or debt-financing solutions. Invoice Factoring agreements are not debt on your balance sheet. Sell your invoices and get cash funding – no balance sheet debt or loan obligations.
The Janitorial Prebilling Invoice Factoring Process follows these easy steps:
- The client delivers services and generates weekly invoices for Bankers Factoring. These are the Prebill Invoices being sold to Bankers Factoring.
- The client sells Janitorial open invoices to Bankers Factoring.
- Bankers Factoring approves the factoring transaction and provides immediate cash funding for up to 93% of the invoice value.
- Bankers Factoring receives payment from the account debtor per the agreed terms with the customer. Upon receipt of the payment, Bankers Factoring remits the remaining open invoice balance less our small factoring fee.
Visit our previous article, “How AR Factoring Works,” to learn more.
How To Qualify for Prebilling Invoice Factoring for Monthly Invoicing?
Invoice Factoring depends on the creditworthiness of the account debtor or the customer paying the receivables. Janitorial Company business owners in financially distressed scenarios benefit from our AR factoring due diligence process. Do not worry if your startup cleaning company lacks credit or if your personal credit has taken hits.
If your Janitorial Company has open invoices for rendered services, we can eliminate the once-per-month invoice wait. Here are the 8 Main Criteria for Invoice Factoring Qualification:
- A completed factoring application
- An accounts receivable aging report
- A copy of your Articles of Incorporation
- Invoices to factor with confirming delivery of service or product information
- Credit-worthy clients (we will check on their credit for you)
- A business bank account
- A tax ID number
- A form of personal identification
What is the Cost of Janitorial Prebilling Invoice Factoring for Monthly Invoicing?
Prebilling Invoice Factoring is an efficient cash funding solution to supplement your Janitorial Company’s cash flow. Our Prebilling Invoice Factoring service has fees starting at .75% per 30-days for our Janitorial clients. Invoice factoring is less expensive than high-interest debt such as Merchant Cash Advances. Understanding Factoring Rates may seem complicated at first. Still, our owner-employee team is here to remove obstacles in your funding path.
To learn more, visit our previous article, “Factoring Rates Explained.”
Why Bankers Factoring Janitorial Prebilling Factoring?
Bankers Factoring is more than a factoring company. We provide consistent cash flow solutions with AR insurance and access to unlimited working capital. We take on the credit risk when our clients sell us their invoices. We add value to your business so that business owners can capture growth opportunities. Reap the benefits of selective factoring programs for your Janitorial Prebilling Invoice Factoring needs.
- Same Day Invoice Factor Financing
- AR Insurance provides bad debt protection
- Cash advances up to 93% on the same day as approval
- Tiered Pricing for Janitorial Startups
- Cleaning Company Weekly Payroll Funding
- Unlimited Access to Working Capital
- Fees starting at .95%
- Outsourced A/R Management
- 24/7 online reporting portal