Invoice Factoring For Your Landscaping Business

A landscaping business usually has two types of customers. The first is for small one-time jobs. The second source of revenue comes from long-term contract jobs. Keeping track of both types of customers and when payments are due can become a hassle. Also, since landscaping (in some areas) is a seasonal business, getting paid in a timely manner is very important. When payments are staggered across multiple accounts, it can place a major strain on cash flow, and a landscaping business becomes unable to meet financial obligations, such as payroll, paying vendors, or making installments on leased equipment. In order to avoid these situations, landscaping business owners are turning to invoice factoring.

Invoice Factoring Is A Simple Solution

Invoice factoring is a very simple process. A landscaping business will partner with a commercial finance business (sometimes referred to as a factor) to set up services, whereby invoices can be submitted for immediate working capital. The initial process can take as few as 36 hours, and invoices submitted to the factor are converted to cash within 24 hours thereafter. This gives landscaping businesses the ability to catch up on open customer accounts and get the payments owed much faster than waiting the full 30 to 120 days (depending on the aging window on the invoices) before seeing any money.

This Is Not A Loan

When landscaping businesses face a strain on cash flow, many resort to taking out bank loans for short term financing until payments start trickling in from customers. While this may allow financial obligations to be met, the business is still left with debt on the balance sheets for years afterward. Invoice financing, on the other hand, is a simple sale on receivables. Landscaping business owners get to preserve their credit ratings, and avoid having to take on additional debt while getting locked into a payment schedule. Invoice factoring is direct, fast, and avoids the red tape of traditional bank loans.

Room For Growth

Invoice factoring gives landscaping businesses the ability to grow. By submitting open invoices and getting revenue quickly through factoring services, a landscaping business can accumulate growth capital in a short period of time. That growth capital can be used to upgrade equipment, hire additional employees, and take on larger client accounts. Invoice factoring is a debt-free solution which provides fast capital to keep you landscaping business on track for success.

Find Out How To Get Started

If you own a landscaping business, and would like to learn more about factoring services, call Bayard Business Capital and Consulting at 573-795-6390. We will work with you to provide the best financing solutions to help you meet your needs and goals.

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