Cleaning Business Invoice Factoring – Improve Your Cashflow
You want to grow your cleaning firm but need business funding to pay for your staff wages. Invoice finance is a possible solution and worth investigating. Invoice factoring works perfectly with cleaning businesses looking to take on more frequent and larger contracts. The business will be able to cover the associated daily costs using the outstanding invoice which you expect to receive 30, 60 or 120 days time.
Cleaning Company Factoring Services
Companies in the office cleaning industry usually begin life as small, owner managed and sole operated. The business owners of these companies tend to be ambitious go-getters, as they have started from the ground up. They are big on enthusiasm and entrepreneurial spirit but short on working capital. The potential for growth with this type of business is limited only only by finance. The skills of a business owners to maintain sufficient cash flow from customers paying their invoices on time is not a simple task. Invoice Factoring for cleaning firm is particularly suitable for any type of service lead business. If a cleaning firm is struggling with clients to settle their invoices on a 30 day+ payment terms, Invoice factoring will allow you access your cash as soon as the invoice is raised, rather than waiting until the following 60 or 120 days.
Cash Flow Improvement Guaranteed
Deciding how to finance growth of your cleaning business, you will find that the many different invoice factoring companies in the UK are all similar. Factors have operational requirement and criteria between invoice factoring companies very, as well of change month on month.
Business owners are waiting 72 days on average for payments from larger companies. Research by the CMI say 60% have waited 3 months for an invoice to be fully paid.
As a director of a cleaning firm you may not know what to look for. Choosing the wrong funding service or factor for your business will make the can cash flow go negative, cost you more than you expected and quickly have a downturn on the company.
Using an Invoice Factoring Broker like Invoice Funding, you will have the benefit of our finance industry experience and expertise to ensure a funding solution for your business.
We will introduce you to the correct invoice factoring company and assist and advise you in your negotiations. Invoice finance company pays us a commission meaning, you won’t pay us a single penny for using our services.
Invoice Finance Solutions for your cleaning business
How does invoice finance work:
Invoice Finance is a process based on Business to Business invoices.
Step 1: The cleaning business must provide a service or a product to the end user ( another business)
Step 2: The business sends an invoice with the amount documenting the amount owed.
Step 3: A copy invoice also needs to be forward to the factoring provider. ( most factors have an online interface for this)
Step 4: The factoring company makes an initial payment usually ( 70 -95%) of the invoice value within 24 hours.
Step 5: Your sales ledger is maintained by the factoring company, so the factor chases overdue payments.
Step 6: The client pays the total amount of the invoice to the factoring company. you then receive the balance less the factoring company’s fees.
Contact us if you need Invoices Funding
Invoice Funding are one of the largest Invoice Factoring Brokers for cleaning companies in the UK. Since we started in 2010 we have secured funding for over 200 Cleaning Businesses.
Invoice Funding offer years of experience having formed close relationships with many invoice finance companies. Due to the volume volume of enquiries that we introduce to funder, we gain a better competitive rate for your business.
Do you think invoice factoring could support your cleaning business to grow? Simply complete the online enquiry form and a funding expert will contact you.