CASE STUDY: Accounts receivable financing enables a start-up company’s success.
PROGRESSIVE JANITORIAL SERVICES
PJS (Progressive Janitorial Services) had secured annual contracts of $250,000, but cash flow management problems were an early and critical barrier to growth.
We’re happy to report PJS has enjoyed an average annual growth rate of 40% since 1996. The owner, who started the company with savings after having been a sales executive at a large consumer products company, credits MP Star and invoice factoring as major factors in his success.
Start-up company needed business financing help to solve these cash flow management problems:
- Lack of capital to fund initial sales of $5000 a week
- Customers taking up to 60 days to pay invoices
- Difficulty making payroll, paying expenses and taxes
A valuable partner providing business funding solutions.
MP Star Financial stepped in with an asset based lending solution, recommending accounts receivable financing to improve cash flow management. Through receivables factoring with MP Star Financial, PJS received an initial advance of roughly $46,000 for outstanding invoices. Because PJS was behind in quarterly payroll taxes, the first $5000 was paid directly to the IRS. PJS used the balance to cover payroll and expenses.
Invoice factoring enables 40% annual growth since 1996 and counting.
PJS still uses invoice factoring on a regular basis to meet ongoing business funding needs. During rapid growth, they’ll employ a 100% accounts receivable financing strategy, while only factoring receivables on a spot-basis during slower times. This allows them to meet temporary cash flow management requirements. Invoice factoring (aka accounts receivable financing) has provided PJS the funds to grow in conjunction with a multitude of professional support services.
Asset based lending yields measurable results.
New growth resulting from asset based lending (via accounts receivable financing) has helped PJS grow to more than 15 times the size of the start-up MP Star initially funded. With offices and clients in multiple states, PJS has come of age and continues to grow, in large part due to business financing help from MP Star.
Invoice factoring: A clean business funding solution. A simple business funding solution based on accounts receivable financing let PJS get on with business and meet expenses. Read another success story where MP Star wiped out cash flow management worries. Contact us today for an invoice factoring growth plan for your start-up business or request a free invoice factoring quote today.