[davis3003]

Who can fund a janitorial company averaging $75,000 per month with only 5 months time in business?

[FunderFunding]

Novo starts at 4 months

[davis3003]

Thanks!

[Olderguy]

Do a personal loan using personal tax return and get decent rate and monthly payments.
Also business credit card if Fico 680 - 700+

[FundingCaptain]

I can help. even with 5 months in business, I can get him on my platform and give him our add-on renewals that work like a line of credit to help them not have to stack and put the business in further risk...call or email me

[fundinggrasshopper]

East Shore, Cooper Asset, Greenbox Capital,

[fundinggrasshopper]

Do a personal loan using personal tax return and get decent rate and monthly payments.
Also business credit card if Fico 680 - 700+

agreed if their credit supports a personal it is definitely the better route.

[Jason Sterling]

Four months in business, credit card card sales based MCA only.

[Olderguy]

SBA has a start up micro loan program up to $50,000

https://www.sba.gov/funding-programs/loans/microloans

[Kevin Henry-Seacoast]

Who can fund a janitorial company averaging $75,000 per month with only 5 months time in business?

Hi Davis3003,

There are a lot of non-bank finance companies that might be able to help a company that is fairly new. The key to finding the right partner for the prospect is understanding their need. Typically commercial cleaning businesses struggle with working capital which is probably the issue here. The largest expense and need for working capital is likely payroll which in most cases is weekly. They likely have contracts with customers and bill for either time and materials or a fee for services monthly. When they invoice the customer the terms are net 30 at best. That being said, the prospect is floating 8 weeks of payroll before they get paid by the customer. Since out of the gate they are billing $75K/Month they are off to a great start and probably have potential to grow. Here are some thoughts on products out there:
-SBA- They are great, but do not revolve to cover the consistent need. SBA loans also don't grow with the customer's needs. If they obtain a small SBA loan, what are they going to do when the funds are exhausted AND they still have to meet payroll needs.
-LOC-Most banks will not consider a LOC due to time in business. Some non-banks may offer a LOC, BUT that product does not revolve to keep pace with the constant working capital need UNLESS the business consistently pays the loan down when they get paid by customers. Paying down the loan usually does NOT happen. It is also a process to get an increase on the LOC as the company grows or the loan gets tapped.
-Factoring-This might be the best tool for their needs. The facility revolves around the invoicing and payments. Most factors will quickly adjust the line limit as the AR grows. This prospect would be too small for us, but you might be able to find the right partner by researching the International Factoring Association's website. Most reputable factors are members. I would research factors that are local to the company AND may be bank owned. There are over 30 bank owned factoring companies in the US and usually are MUCH more cost effective than non-banks. TIB should not be an issue.
-MCA The company's gross margins are likely less than 25%. That being said, can they really afford the MCA cost. Also, MCA is truly not revolving which may stifle the growth of the company.

Just some thoughts....

[Olderguy]

Great suggestions:

May I add that companies may know their products but most don't know how to run their business finances.

Before you review and consider all these alternatives, you need a financial business plan and that's what missing with today's businesses.

Business need a remote CFO to be an ongoing partner to guide them through their options. A remote CPA at $25 an hour is the best investment any company an secure.

Then they aren't being pushed by some broker or another to take some financial product because it can get them quick money or make the most money for the broker which is the norm nowadays.

Here:

https://form.jotform.com/240650559658466

They will want to see the following:

PLEASE MAKE SURE TO BRING THE FOLLOWING::

BOOKKEEPING/JOURNAL ENTRY SOFTWARE
PAYROLL SOFTWARE
BUSINESS CHECKING ACCOUNT(S) – VIEW ONLY
BUSINESS CREDIT CARD(S) – VIEW ONLY
PERSONAL CREDIT CARD(s) – VIEW ONLY

Initial consultations are free.

In addition, there are other funding options available to a new business that most brokers wouldn't normally have any awareness.

Personal loans 80% of gross income with a monthly payment, 3+ years, great rates
Business credit card - I got a trucker $69,000 doing $11,000 a month
HELOC - home equity line of credit....go to a local credit union
Asset based loan....Have a truck or other asset free and clear?
Hard money real estate loan - investment property....1% a month interest only fixed for 10 years.
As mentioned - SBA Micro Loan - up to $50,000