Contract cleaning companies and getting through the recession
Cleaning contractors ICS
here on this blog have shown a few ways that cleaning companies can try
to weather the recession (-
see more about what cleaning contractors can do to survive the recession
here)
but we came across some myths and info regarding the supposed credit crunch that might help well.
Government and the press have repeatedly called on banks to increase lending to companies. But has anyone questioned whether the banks have stopped lending? Contrary to popular belief banks are still lending to well run companies. The usual criteria must be met, if you have a good sound business banks will have funding available.
Interestingly the demand for lending from banks has actually fallen! Why? Well good businesses know now is not the time to be spending, now is the time to tighten the purse strings. One could infer from this fall in demand for credit, that poorly run businesses are the ones having to go cap in hand for credit and quite rightly the banks would refuse to loan against a badly run business.
Requesting overdrafts and loans are a desperate way of raising finance and costly as well. If you're running a well run cleaning company with little or no debt and plenty of good, in credit clients and you need to raise working capital there are other options.
Debt factoring or invoice discounting would be an easier way to raise capital, the banks will be much happier spreading their risk of return over several clients rather than one company, the bank is effectively taking over the debtors of the company as security. Banks are willing to invest larger amounts in this manner and companies will probably get it cheaper than overdrafts or loans although even this type of lending has increased in cost.
If you need working capital to get through the current economic period and have a sound busniess, try asking the banks first before believing the media.
ICS Cleaning are an eco friendly office cleaning company in the UK; we invest a great deal in selecting the right staff, ensuring they have excellent ongoing training and support, so we can be sure we deliver excellent cleaning standards day in day out.
Find out more by getting an online quote now!
but we came across some myths and info regarding the supposed credit crunch that might help well.
Government and the press have repeatedly called on banks to increase lending to companies. But has anyone questioned whether the banks have stopped lending? Contrary to popular belief banks are still lending to well run companies. The usual criteria must be met, if you have a good sound business banks will have funding available.
Interestingly the demand for lending from banks has actually fallen! Why? Well good businesses know now is not the time to be spending, now is the time to tighten the purse strings. One could infer from this fall in demand for credit, that poorly run businesses are the ones having to go cap in hand for credit and quite rightly the banks would refuse to loan against a badly run business.
Requesting overdrafts and loans are a desperate way of raising finance and costly as well. If you're running a well run cleaning company with little or no debt and plenty of good, in credit clients and you need to raise working capital there are other options.
Debt factoring or invoice discounting would be an easier way to raise capital, the banks will be much happier spreading their risk of return over several clients rather than one company, the bank is effectively taking over the debtors of the company as security. Banks are willing to invest larger amounts in this manner and companies will probably get it cheaper than overdrafts or loans although even this type of lending has increased in cost.
If you need working capital to get through the current economic period and have a sound busniess, try asking the banks first before believing the media.
ICS Cleaning are an eco friendly office cleaning company in the UK; we invest a great deal in selecting the right staff, ensuring they have excellent ongoing training and support, so we can be sure we deliver excellent cleaning standards day in day out.
Find out more by getting an online quote now!
posted by Office Cleaning London Contract Cleaners For UK @
02:26
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