Growing While Shredding
Invoice Factoring Growing While Shredding
Author: Stephanie Clarke
Date posted: 02.18.23

Dave has run his document shredding business successfully for several years and now boasts 50-plus commercial clients under annual contracts. Given the rise in the number of horror stories surrounding identity theft, industrial espionage, and more, as a result of the confidential data being stolen, Dave sees a tremendous opportunity to grow his business. The increasing amount of sensitive data being generated creates even greater demand for simple, secure, and cost-effective shredding services like those provided by Dave’s company.

Currently, his company is a small operation, yet it’s experiencing growth while focusing on shredding services. It provides off-site document destruction and operates a versatile on-site disposal truck. The company maintains client trust through secure shredding for paper, credit cards, computer tapes, and modern media storage. Certificates of destruction and detailed invoices enhance this service’s value.

Dave’s goal is to expand with an additional state-of-the-art disposal truck, demonstrating his commitment to growing while shredding. While he has saved a substantial down payment, he is still concerned about finances. This is especially true regarding how he will manage the needed payments while simultaneously expanding his clientele. He currently invoices most clients monthly, though a few choose to pay semi-annually or annually for his services. Given most clients’ preference for monthly invoicing with a 30-day payment window, Dave sees the need for a cash flow solution to cover the new truck’s cost and manage his business’s growing while shredding direction, involving existing and new clients.

 

Growing While Shredding

Dave contemplated traditional loans but found them unsuitable, given his goal to double clients next year through the new truck addition. He unexpectedly ran across the option of invoice financing. This solution provides necessary cash flow for truck payments, operating, and maintenance expenses. Invoice factoring enables small businesses like his to sell unpaid client invoices. This allows them to access necessary cash for short-term finances without requiring an additional loan. Plus the fees are relatively low.

Invoice factoring will help Dave make the monthly payments on time, with the potential to pay off the truck sooner while he waits for client payments. The invoice factoring process is seamless and quick and will aid Dave in bridging the cash flow gap between the purchase of a new truck and acquiring new clients.

 

Months later, clients’ monthly payments are driving Dave’s thriving document shredding business, enabling him to double his truck payments and add around 25 new clients, aligning with his goals. With accessible invoice factoring, Dave adeptly manages cash flow hurdles and addresses slow payer challenges. This solution additionally offers him peace of mind and focus on annual goals, streamlining both truck payment and operational success.

 

Growing While Shredding
About The Author | Stephanie Clarke

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.

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