Wondering about the importance of cash flow management? You won't after reading "The Effects of the Current Bank Collapse" in Services.
In the December 2008 issue of Services, the magazine that goes to members of the Cleaning, Maintenance, Facilities and Building Services Contractors Association, one writer comes to this conclusion: "volume is vanity, profit is sanity and free cash flow is salvation."
Hard to argue that last point!
Here's what the writer, Bruce Merrifield, has to say about the future of banks as a company's business funding solution.
According to Merrifield, "The U.S. banking system has begun at least an 18-month process of reducing its balance sheet leverage, which will affect all distributor working capital loans and acquisition/selling plans and valuations." In other words, it will be more difficult to get a loan. He also adds that smart businesses should start "paying down debt with free cash flow."
For cash flow management solutions to free up cash flow during good economic times and bad, choose invoice factoring for your janitorial business.
With receivables factoring, you can:
- Pay down debt, as recommended by Merrifield
- Meet payroll and payroll taxes, as well as other expenses, without worry
- Expand your geographical boundaries, add new services and/or grow your business in any other way that you choose
For more information about cash flow management through invoice factoring, contact MP Star Financial at 1-800-833-3765, x. 150 or apply for your business funding solution online now.
