Few businesses or industries are immune to cash flow problems from time to time. Yet industries with seasonal business cycles such as commercial landscaping and maintenance are more prone to cash flow issues than others. Equipment and materials costs, expensive payroll costs, fuel costs and competition are high. The worst part is you will probably have to pay these costs well in advance of actually collecting payment from your customers. Commercial landscaping can be very competitive and customers routinely pay on 45- or 60-day terms.
Businesses with High Expenses, Long Payment Periods Need Factoring Services
Unfortunately, high cost expenses paired with long payment terms make the perfect recipe for cash flow headaches. Yet those in the commercial landscaping sector don’t have to be at the mercy of their customers’ delayed payments any longer. Factoring receivables services can help businesses get cash when they need it so they can keep strong business cash flow year-round even in non-peak business months. Factoring accounts receivable can help your business:
- Purchase sod, seed, fertilizer, shrubs, trees, and necessary chemicals
- Buy, lease or repair mowers, leaf blowers, shears, or other tools and equipment
- Cover the rising costs of fuel for both moving equipment and trucks
- Pay for costs of hiring workers and payroll funding
- Have cash or a line of credit available when you need it to take on bigger-than-expected jobs
- Get money to pay for marketing and advertising to expand your territory
Use Money from Business Factoring Services as You Wish
The truth is you can do whatever you’d like with money received from accounts receivable factoring – sometimes referred to as AR factoring. The invoice factoring company, unlike the banks, does not make the decision on providing you with money based on how you choose to use it. No need to submit your business plan to the factoring company. Instead, just submit your current invoices and get paid up to 90 percent of their total value in a day or two. You don’t even need a credit check because invoice factoring companies really only care about the creditworthiness of your clients.
So don’t suffer through another summer business season struggling to pay your bills and stay on top of your work orders. Give yourself the advantage of invoice factoring and never worry again about how you will pay that next commercial landscaping job.