The slow Winter months can be tough on Landscaping contractors. During these months it can be hard to maintain employees and repair/replace damaged equipment. This is even more difficult for commercial landscapers who often have to wait up to 90 days to receive payments. So, even though the landscaper provided his/her customers at the height of their busy season, they often have to wait half way through Winter to receive payments. Accounts receivable factoring can be a landscaper's blessing and might help cash flow problems during this time of year.
If the landscaper uses accounts receivable factoring, they will sell their unpaid invoices to a factoring provider at a discounted rate. The factoring provider is then obligated to collect payments. Once the unpaid invoices are paid in full, the factoring provider will send the landscaper the remaining balance minus a small fee. Both the landscaper and the factoring provider have achiever their goals and are happy.
Keep Cash on Hand
After working all summer, a Landscaper's account should be high on cash. It's not unusual to tap into that capital as things slow down. A company becomes vulerable to unseen expenses when the working capital drops too low.
It's also important to have sufficient working capital at the end of Winter and at the beginning of the next growing season. New employees might have to be hired. And, more equipment may need repairing and/or replaced. These are expenses that still need to be covered. Accounts receivable factoring can help a business keep these revenue streams flowing.
Additional Benefits of Accounts Receivable Factoring
Cash Available
You can accomplish an accounts receivable transaction in 24 hours... sometimes in less than 24 hours. Invoices do not have to be paid. Loans do not have to be approved!
Avoid Unwanted Debt
Factoring does not add debt to your balance sheet. Also, other financing options remain available.
Credit Reports Are Not Required
Your company's credit status is no concern. The factoring company is only concerned about the credit worthiness of the customers whose names are on the invoices. Will these customers pay their invoices. That's the concern of the factor.
Fund Your Future Business Growth
Always be ready to take advantage of a future growth potential. Having cash is important during these times. Be able to fund new equipment, add employees, or fund new sales opportunities.
Caps Funding Can Be Your Ideal Factor
It is now late Fall going into Winter. If you have a Landscaping company and might want to talk to me, Charles at Caps Funding, LLC about how my factoring company may be a landscaper's blessing during these lean months, pick up your telephone and dial (803)429-3686. I can talk to you about potentially different funding solutions.