WHAT'S IN THIS GUIDE
Waste disposal can be a messy business. It can also be quite profitable. But many waste disposal companies have to wait up to eight weeks to get paid for services performed. Larger companies may have the ability to wait for 30 to 90 days to receive payment, leaving smaller waste disposal businesses at a competitive disadvantage.
Many small companies operate on tight budgets, and extending credit terms can be challenging. Operating expenses, truck maintenance, and payroll must be covered even when revenue comes in slowly. Invoice factoring for waste and disposal companies speeds up cash flow so you can pay expenses, or even grow your company, with peace of mind.
With invoice factoring, also known as accounts receivable factoring, you finance your receivables from creditworthy companies, providing you with working capital ahead of long payment terms. Fix or replace equipment, pay bills, and have the cash flow to handle it all.
Invoice factoring leverages your business’s outstanding invoices and turns them into cash.
Factoring is not a high-interest loan to be paid back in monthly installments. It does not require collateral. Even if you are a relatively new provider, you can still qualify. The application process is quick and easy, and your credit doesn’t matter as the factoring company looks at the creditworthiness of your clients instead.
Any waste disposal company with unpaid invoices for services already fulfilled can benefit from invoice factoring. These benefits extend to companies that have few other options due to credit profile or growth stage, including:
Costs for a new or growing waste disposal business can be significant. You may need to purchase equipment and inventory, pay employees, and keep up with rent, taxes, and marketing. You may consider taking out a business loan.
A line of credit (LOC) is a lot like a credit card. You can borrow/withdraw money up to a certain maximum amount determined by your financial institution. You can cover day-to-day expenses and pay back your debt, only to borrow again when needed.
Like all forms of funding, business credit cards must be used wisely or things can go sideways very quickly.
Invoice factoring is not a loan. The application process is quick, there is no repayment obligation, no high interest rates, and no debt to record on your company’s balance sheet. Plus, many more companies will qualify.
Choosing a factoring partner is a lot like choosing any lender. It pays to do your homework. There are also several questions to ask prior to starting the application process:
Most factoring companies work with most industries, but not all. Some factors specialize in only a few industries.
FundThrough works with companies in these sectors.
Advance rates can range from 60% to 100%, depending on the factoring company and sometimes the industry.
FundThrough— 100% of the invoice amount, less a fee.
A factoring company should be able to provide what factoring fees it charges upfront. But some companies may make it difficult to determine the total costs of using their service. FundThrough offers transparent pricing so you know prior to signing an agreement.
FundThrough pricing – 100% advance rates minus a flat fee. One up front price.
A minimum is the amount you must factor every period (month, each quarter or every year). Some factoring companies offer plans that require minimums, while others do not.
FundThrough doesn’t require minimums. Only fund when you need to.
Cash flow is the number one problem for most start-ups and small businesses, especially if they’re growing. This is also true for companies in waste management industries. Invoice factoring companies typically consider several situations before offering you an advance.
Factoring invoices is a sound financial strategy if you—
FundThrough takes the legwork out of accounts receivables financing. It’s fully automated platform is easy to navigate, it’s fee structure is transparent and a customer service rep is there when you have questions. Find out what FundThrough’s clients have to say, and start factoring your invoices today.
Interested in possibly embedding FundThrough in your platform? Let’s connect!