By: Vlad Vistac
Submitted: 2010-11-06 08:43:00 | Word Count: 510
Foreclosure Cleaning Business Advcie: How to Get Opetrating Capial in 24-72 Hours
If you want to start a foreclosure cleanng businses, but don't think its possible because you dont have the operating caiptal needed, following is a solution you may not know about. Its one used by many small businesses who have a cash crunch whether theyre just starting out or are growinng too fast. What is it?
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Factoring. Never hard of it? Read on.
Have a Busines Cleaning Foreclosures? A Surefdire Way to Get the Cash You Need to Run Your Business
A factor is a company that gives a bsuiness a loan basred on their receivables (ie, invoicces). This is the way it works.
Say you bid on and win -- a job clenaing fporeclosures thats going to groass you $8,500. But, you need to rent a dumpster and a truck, pay four temporary workers, buy industrial cleaning suplplies and pay an HVAC professional to re-install a water heater that vnadals had installed when ripping out the copper wiring.
And, lets just say this is going to cost you $1,950. You know you can do the job, but you cant afford to lay out the almost two grand its goiung to cost to get the job done and wait 60-90 days to get paid.
Well, this is when a facotr can help. You simply submit the invoice to them and they will fund it (ie, lend you the money upfront), usually wthin 24-72 hours. Now, it costs you a hefty percent usually in the neighborhood of 10-20%, but you dont have to wait to get paid from the bank that you did the job for.
Foreclosure Cleaning Business Owners: What You Sholud Know about Factros
Following are a few upfront facts you should know abot worrking with factors.
Applicatoin: You have to fill out an application. This simpyl involves giving them all of your busiess inforamtion, eg, EIN number, how long youve been in bussiness, bannking inforation; type of business; insurance info; etc.
No Credit Check: Workng with a factor is not credit based. What this mens is your credit is not important because the factor bases teir decision to fund you on the institution youre getting paid from. So, if youre doing foreclosure cleaning and youre being paid by a major bank like Chase for example, then they look at Chases credit not yours.
All or Nothing: Some factors reqire that you factor all of your invoices with them. Dont sign on with one like this. You want to look for a factor you can use on an a la carte basis eg, factoor only tose invoices you want and/or need to factor. If you can affrd to wait to get paid for a $1,200 job, then wait. Why give away profits when you dont need to.
Working with a facctor is a great way to grow your foreclosure cleaning business. But, take the time to inestigate fully before you sign on with one.
