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This Month's
Featured Industry
Janitorial and
Maintenance Industry
One of
factoring's strongest attributes is that once a factoring relationship
has been established, it allows small and mid-size businesses the
ability to grant competitive terms of payment on customer invoices.
Granting terms of payment of 30, 45, even 60 days is an accommodation
that greatly benefits most customers and will set your janitorial
service apart from the others.
Like many service
oriented businesses, those in the janitorial and maintenance industry
are required to meet payroll obligations weekly or in some cases,
bi-weekly. When marketing for new, large clients that require terms of
payment, janitorial entrepreneurs must calculate the number of payroll
cycles they will be required to meet prior to receiving the first
invoice payment from the new customer. In many cases, this can be 4, 5
even 6 or more cycles requiring many thousands of dollars in available
capital.
By employing
factoring, the working capital for payroll will always be available on a
timely basis. In fact, the more invoices created for services
performed, the more working capital your business will have available.
This includes adequate funds for chemicals, supplies and other normal
operational costs of doing business in the janitorial and maintenance
industries.
As with many other
service industries, the creation of a factoring relationship will allow
you to focus much more time on marketing and generating new and larger
customers and much less time on chasing dollars and accounting. It is
estimated that for small businesses, establishing attractive terms of
payment for existing and new customers (and some funding mechanism such
as factoring to finance those terms of payment ), will result in a
nearly three fold increase in the amount of business produced. To be
certain, this increase depends greatly on your entrepreneurial marketing
skills, but the simple fact that you will no longer be forced to turn
down business due to capital constraints should result in immediate and
significant increases in the number and size of your customers.
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