With more than 20 years of experience as a contractor to municipalities specializing in water infrastructure maintenance and repair, David Miller decided to venture out on his own. "I had great relationships with city engineers and project managers that it simply made sense that it was time to set-out on my own. I used my retirement savings to purchase vehicles and specialized equipment that we would need."
Like many businesses, David relied on the most accessible funds he had access to. "We grew rapidly over our first two years and many of my customers helped support my cash flow by paying us in some cases in as little as 7 days. As our reputation grew and we expanded, the close relationships that were helping to support our cash flow were simply not there. I wanted the business and had to find a solution to support my growing payroll."
David’s banker recommended Gateway Commercial Finance. "I was surprised how simple, accessible and cost effective their program really was. In addition to a steady stream of funds for payroll, I also benefit from comprehensive reporting; credit monitoring and peace of mind."
It is pretty easy for a service provider to get in over his head and lose track of where his business is going. In the service provider industry, a company can grow rapidly by word of mouth. There can be solid business relationships built up in the beginning, but those relationships tend to cool as the customers get into the habit of regarding you as just another service provider.
The strange thing about developing a solid reputation in your industry is that you go from being everyone's friend to being that company that does a professional job in a professional manner. The customers that used to make sure that they paid you quickly, will soon fall into the dangerous habit of paying on or a little after their invoice due date. As your company continues to grow, this lack of cash flow becomes a huge issue.
Don't Get Angry With Your Customers - Take Advantage of Invoice Finance
It can be easy for service providers to take a "where are you when I really need you" attitude towards long-time clients, but that is the wrong way to look at things. Your clients become comfortable with your service and they simply expect you to continue to provide the best service possible. In a way, the idea that customers start to focus less on paying your invoices fast can almost be a backhanded compliment. But it is a compliment that is not paying your bills for you.
Don't get mad at your customers. Instead, utilize invoice finance for your funding needs. Banks can be great sources of quick and finite amounts of cash, but that runs out after a while and the application process can take forever. Invoice finance through service provided factoring services provides you with steady cash flow just as long as you keep bringing in invoiced sales. The best part is that it only takes hours to turn an approved invoice into cash.
Use The Cash Flow Solution That You Can Count On
As a service provider, your clients count on you to make their lives simpler. In exchange, your customers will eventually pay their invoices each month. Your company needs an invoice finance provider that you can count on and that is why you need to get in touch with a service provider factoring company.
A service provider factoring company will not run your credit score, and won't make you wait days for an invoice finance answer. The process is easy to apply for and operates at maximum efficiency. You will have the cash you need to make payroll, purchase new equipment and pay ongoing operations costs each and every day.
As a reliable service company, you work hard to deliver for your clients on a regular basis. If you want to survive and enjoy the benefits of your hard work, then you need a reliable invoice finance partner that can keep your cash flow moving along. With service provider factoring, you can keep your customers happy and keep your bills paid as well.