Ellie’s company serves the residents of her community with outstanding cleaning services. She supplies and supports each of her teams with company vehicles, coordinated uniforms, and all the cleaning equipment and supplies so her clients always know who is coming to clean their businesses. With Ellie’s Cleaning Teams, there is never any doubt about the quality of the work, the safety of the cleaning supplies, or the security of their property. Her company’s stellar reputation has resulted in unprecedented growth.
Ellie’s customers are on monthly or annual contracts, so their cleaning is done on time every time. With the company’s rapid growth, she needs to hire more employees, and outfit the new teams with vehicles, uniforms, equipment, and supplies. The unexpected growth brings financial challenges and in order to make the additions of staff, vehicles, and equipment Ellie needs to increase her cashflow quickly and easily.
Ellie invoices her clients monthly, but as often happens, there is sometimes a lag between invoicing and payment of up to 60 days which further effects cash flow. To solve the problem, Ellie hopes to avoid a traditional loan. During her search for an option to increase her cash flow, she found invoice factoring, which would allow her the ability to hire the additional staff and equip them with vehicles, equipment, uniforms, and supplies. It will also allow her to cover ongoing expenses like maintenance, payroll, and operations.
Invoice factoring will allow Ellie to “sell” unpaid invoices to access the cash flow needed for building her team. With its low fees, and short term commitment, Ellie can make the purchases needed, hire new staff, and never miss a beat as she grows her business through new residential contracts. Her company’s growth will be easily maintained and she can add each new team, vehicle, and equipment by keeping cash flowing with invoice factoring.
A few months into invoice factoring, Ellie was able to add one new team, one custom vehicle, equipment, uniforms, and supplies. Invoice factoring has allowed Ellie to contract more clients, and after a year, she was able to add two additional teams with all the needed equipment. With each team addition, Ellie has been able to engage new contract customers, while keeping existing customers happy with the existing billing scenario. Invoice factoring has allowed Ellie to determine the cash flow levels needed each quarter, allowing her to make adjustments as needed, even when clients are a little slow in paying their invoices. As a bonus, invoice factoring doesn’t bring with it all the challenges a traditional loan often brings.
Stephanie has a bachelor's degree in psychology and has been a professional writer for over 15 years. Her client list includes New York Times bestselling authors, publishing houses, prominent public figures and successful business owners. She resides with her family in Florida.
