Janitorial Finance is for commercial cleaning companies that service commercial buildings on a recurring basis. Most commercial cleaning companies make payroll weekly or every two weeks, however, bill clients on Net 30 days terms. Janitorial finance is used to bridge the gap between making payroll and receiving payment from the commercial customer thirty to forty five days later.
The most common forms of janitorial funding are:
- Asset Based Lending
- Invoice Factoring
- Spot Factoring
- SBA Loans
- Cash Flow Loans
Choosing the right janitorial finance program will mainly depend on the advance rate and the amount of funding needed. Janitorial companies that require consistent working capital should take advantage of asset based lending or invoice factoring while companies with intermittent cash flow needs should take advantage of spot factoring.
The amount of funding that a janitorial company can receive will largely depend on the company's billing cycle. Companies that bill in the beginning on the month for the current months services will receive a lower advance rate initially versus companies that bill in arrears for work completed. Either way, janitorial companies can take advantage of funding to take on more commercial contracts.
While there are several forms of janitorial finance available, each has its pros and cons. In many cases more than one form of financing can be used to generate capital. Choosing the right working capital facility with the right lender can make all the difference.
Call us now at 855-424-2958 to discuss your janitorial finance options! Or fax us at (855) 450-0885.
Customized Financing Options
Asset Based Lending
Revolving lines of credit up to $20,000,000
Accounts Receivable Factoring
No minimums, up to $20,000,000
Secondary lines of credit for ABL or Factoring
Equipment & inventory facilities
Great for staffing & temp agencies