Boost Your Commercial Janitorial Company with Consistent Cash Flow
By converting unpaid commercial invoices into instant working capital, invoice factoring gives commercial janitorial and cleaning businesses in the USA and Canada access to quick cash. Rather than having to wait 30, 60, or even 90 days for corporate clients or property managers to pay, you receive the money you require in less than a day to pay for payroll, buy equipment, and take on bigger cleaning contracts.
Why Janitorial Businesses Face Particular Cash Flow Issues
It takes constant cash flow to run a profitable commercial janitorial and cleaning business. Your largest costs don't wait for your customers to settle their bills.
- Payroll: Weekly or biweekly payments are expected by your supervisors, cleaners, and specialized workers.
- Supply Costs: It is necessary to buy floor buffers, industrial vacuums, personal protective equipment (PPE), and chemical cleaning solutions in advance.
- Payment terms: Net-30 to net-90 payment terms are commonly demanded by corporate accounts, and property managers.
- Hindering Progress: It is frustrating to turn down a significant contract for a new corporate client simply because you lack the funds to cover the initial hiring and supply surge.
This gap is perfectly filled by janitorial invoice factoring. To put an end to the waiting game, we purchase your open commercial invoices.
Invoice Factoring for Janitorial Companies and Their Cash Flow
We specialize in improving cash flow for commercial janitorial service companies in the USA and Canada.
High Advance Rates
Get immediate capital with advances up to 90% to 95% of your total commercial invoice value.
Funding Customers in the USA and Canada
Easily manage accounts in the USA and Canada by funding operations in both USD and CAD.
Fast Turnaround
Your first funding round can be completed in a matter of days, and ongoing invoice funding can be completed in a day.
Non-Recourse vs. Recourse Factoring: Which Is Better for Your Company?
We provide two unique invoice factoring structures customized to align with your company's risk tolerance and financial objectives.
1. NON-RECOURSE FACTORING (Maximum Credit Protection)
An additional degree of protection against bad debt is provided by non-recourse factoring. Our factoring company covers the financial loss in the event that your customer files for bankruptcy or becomes legally insolvent prior to paying the invoice. This option offers you total peace of mind when working with new or unstable clients, but it comes with slightly higher fees.
FACTORING FEES
Lower, most cost-effective.
CREDIT RISK
Absorbed by the factor (for insolvency).
IDEAL FOR
New clients or volatile industries.
2. RECOURSE FACTORING (Most Cost-Effective)
The most affordable factoring fees are associated with recourse factoring, which is the industry standard. In the event that your client is unable to pay the invoice because of financial insolvency or prolonged default, your janitorial company will ultimately be held accountable under this agreement. You have to buy back the invoice or replace it with a new one if a client completely defaults.
FACTORING FEES
Slightly higher premium.
CREDIT RISK
Retained by your cleaning company.
IDEAL FOR
Established, reliable corporate clients.
Frequently Asked Questions
How does janitorial invoice factoring work?
After you complete a cleaning service, you send the invoice to your commercial client and provide a copy to us. We will advance you up to 90% to 95% of the invoice amount to your bank account within 24 hours. Your client will pay us directly based on their usual payment terms. Once we receive the payment, we will release the remaining balance (the reserve) to you, after deducting a small factoring fee.
Is invoice factoring a business loan?
No, invoice factoring is not considered a loan. It does not result in accumulating new balance sheet debt. Instead, it involves the outright sale of an asset—specifically, your accounts receivable. Since it is not classified as a loan, the approval process primarily depends on the creditworthiness of your commercial clients rather than your personal credit score or the length of time your business has been operating.
Can you factor accounts in both the USA and Canada?
Yes, our platform fully supports companies operating domestically in either country, as well as those managing cross-border commercial accounts. We facilitate payments in both US and Canadian dollars.
Will my customers know I am using a factoring company?
Yes, they will. Your customers will send their payments to a secure lockbox or directly to our account, which means they will be notified of the assignment of payment. This practice is standard and routine in the commercial janitorial industry.
What are the minimum volume requirements?
We provide flexible arrangements. Whether you're a local janitorial service company looking to factor a single large client or a multi-state operation aiming to factor your entire ledger, we can create a customized plan tailored to your needs.
Never Worry About Cash Flow Due to Unpaid Invoices
Stop allowing unpaid invoices to determine the pace of your business growth. Collaborate with a financial team that understands the fast-paced needs of the commercial cleaning industry across North America.
Reach out to our janitorial funding specialists to access your working capital and confidently scale your operations.
get started