Janitorial businesses will “increasingly utilize contract cleaners.” Do you have a cash flow management plan in place to take on new customers?
According to Business Wire , “Businesses will increasingly utilize contract cleaners to reduce overhead costs.” That’s great news for companies in the contract cleaning business but, as you already know, there are expenses associated with taking on new clients. You’ll need:
- More contract staff
- More cleaning equipment and supplies
- Funds to meet a boosted payroll
You’ll need all of this before your new customers pay their first invoice. So, how confident are you in your projected cash flow management plan? If you don’t want to take on new debt through a bank loan, what are your alternate business funding strategies?
According to the Worldwide Cleaning Industry Association the market for janitorial equipment and supplies in the United States is projected to grow 2.2 percent per year to US$7.1 billion by 2019.
The study attributes the growth to accelerating economic growth, which will increase foot traffic and a need for additional cleaning in facilities. Additionally, the report forecasted that heightened demand for sustainable cleaning products and quieter janitorial equipment will promote overall gains through 2019.
If you sell or lease janitorial equipment and/or supplies, do you have a cash flow management strategy in place to meet the increasing demand for your products? If you don’t want to take on new debt through a bank loan, what are your alternate business funding strategies?
More institutions – meaning schools, hospitals and other public buildings – will be built or expanded, which means even more cleaning opportunities.
This raises the same questions about cash flow management and alternate business funding strategies.
Choose invoice factoring with MP Star Financial as you expand your janitorial company.
When you choose invoice factoring as your business funding, you are taking on no new debt .
You can use the funds freed up by receivables factoring in any way that you choose, including:
- Meeting payroll and other expenses
- Developing new products
- Expanding the service area of your janitorial business
For more information about Janitorial factoring and how it can help your business, call today at 800-833-3765 Ext. 150, #150 or apply for receivables factoring online now .