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    4 Replies Latest reply on Aug 24, 2009 8:49 PM by HelpingOther

    Need Some Financing Advice

    Rclynch82 Newbie
      Hello All,

      I am the owner of a Commercial Cleaning Company. We have been in business for a little over 1 year and have continued to expand rapidly. Almost too rapidly. I started with ZERO $$$ and the company has grown at an average of $10,000 in new contracts per month. My problem now is that I am growing too fast to keep up with payroll expenses. Some of my contracts take over 45 days to pay and its hard to juggle $$$ and at the same time supply funds to start new contracts. I never want to face the problem of having to turn down business just because I cant afford to buy equipment or pay my employees for the 1st month.

      I am looking for any advice on where I should start when trying to obtain a small credit line just to help pay my employees, fund equipment expenses on new startups, and possibly expand our marketing. Would a bank even budge right now.

      I am not looking for much at all, $5000 to $10000 would be just perfect.

      You can visit our website at to view our services, we have taking a lead in the commercial Green cleaning industry which has helped to boost our rapid growth.

      Any and all advice in very appreciated.

        • Re: Need Some Financing Advice
          phanio Pioneer
          There are many options for you. But, before I go into them, if you cannot manage your growth - you will end up right back where you started. Sometimes you have to say no - that does not mean that you cannot go back to that customer later.

          If you are seeking equipment - there are many non-bank equipment lenders that have great programs just for businesses like you in your situation.

          You could also leverage your current accounts receivable - term factoring. There is even purchase order financing - if you have contracts in hand - you can receive the funding you need (including to make payroll) to complete those jobs.

          Have you tried micro-credit organizations?

          Many options.

          Business Money Today

            • Re: Need Some Financing Advice
              ontiversmo Wayfarer

              I totally agree with Phanio's advice. Coming from the factoring industry myself, I would urge you to seriously look at the various factoring programs that are out there. As you can imagine, there are many ways to structure a factoring deal - it's your job to find the best company out there that best serves your needs.

              You may want to consider the following questions when hunting for a factoring company:

              1. What is the sign up fee? Is the sign up fee required up front, or will it be deducted from the first round of funding?
              2. Are there any early termination fees? If so, do they make sense for you and your business?
              3. Are you offered a deal where you are tied into a monthly minimum amount of invoice funding?
              4. Must you factor 100% of your invoices with the factoring firm?
              5. What are the rates - do you have "room" in your profit margin to absorb the fee?
              6. Do you have any suppliers who will provide you a discount for paying them early, if so you should consider using the factored funds to pay suppliers early, get the discount - therefore reducing the cost of factoring.

              Kind Regards,
              Steve Ontiveros
              Resource Business Partners, Inc.
            • Re: Need Some Financing Advice
              HelpingOther Newbie
              Factoring might be your best bet at this time.