Helping service companies
Most service companies face the same cash flow or financial problem: making payroll. While you pay your employees weekly or twice a month, your customers may take 30 days or more to pay you. A profitable company can still have low cash flow.
The faster you grow, the tighter the situation becomes. Growing critically depends on financing, but traditional banks often won't approve of a loan or line of credit.
Banks rarely extend credit to service companies because service companies make money by providing an intangible. They also tend to work in leased space using leased equipment.
Your balance sheet may not show the hard assets that banks demand before agreeing to extending credit without a personal guarantee from the owner. And, in most cases, banks don't treat your accounts receivables as an asset.
It's common for service companies with a great track record and growth potential to be turned down for bank loans. The inability to obtain a bank loan has nothing to do with a company's profits.
Service companies like yours find it easy and simple to qualify for financing with us because we don't look at financials or hard assets. It's very possible you could have your cash by next week.
Some service industry clients include:
- Staffing companies (medical/nurses, blue/white collar and clerical)
- Consulting firms
- Janitorial services
- Security companies
- Transportation businesses (trucking, student transportation)
- Laboratories
- Landscaping ... and many others
A business, or two, or three like yours has probably worked with us. Contact us to find out how you can stop the cash flow and funding shortage.
