Cleaning service company funds growth with an $8M factoring line

AR Funding is proud to welcome this specialized cleaning service company as one of its newest clients.

AT A GLANCE

Industry: Business services
Location: CO
Company size: ~$8M annual revenue
Reason for applying: Exponential growth
Cash available through factoring: $8M

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PROBLEM: Growth curve exceeds working capital

Founded in 2018, this janitorial and housekeeping company works with high-rise luxury apartments, hotels, hospitals and shopping centers. Their staff of trained, certified cleaners deliver specialized medical cleaning, carpet and hardwood floor cleaning, floor and fire restoration, and more. 

Between 2022 and 2023, their sales grew nearly 250%, going from $3.3 million to $8.1 million, and the company expects to see similar growth in the months ahead. They offered an early-payment discount to their clients, but they still weren’t seeing the working capital they needed to cover the up-front costs of training, certifying, and paying the staff they needed to maintain growth. 

SOLUTION: $8 million factoring credit line

The company looked into ways to leverage their accounts receivable, and decided to factor their invoices with AR Funding. After evaluating the financial stability of the company’s clients, we were able to extend an $8 million credit facility to help them take on more work and meet their payroll obligations, even if their business continues to grow at the same rate.

This happy client received financing with help from Darren Wright, Regional VP, Central Region. Find out how much cash your company can access through invoice factoring. Talk to us.