Taking your water damage restoration business to the next level is the dream, but it doesn’t come without financial risks. The growth of your business relies heavily on your ability to take on large restoration jobs that come with a big payout. Unfortunately, until you send out your final invoice, you bear the weight of funding the supplies, equipment and manpower for the job.
If you don’t have the cash flow to take on large restoration jobs, it can certainly feel like your business growth has hit a wall, but financial assistance can give you the opportunity to get unstuck. Here’s what you need to know about finding financial backing for your company’s growth.
Securing a Line of Credit: Paying cash for restoration jobs may be a low risk way to conduct business, but it will also guarantee your grow slowly (or not at all). If you find an institution willing to provide you with a secure line of credit with the high limit you need to take on high paying jobs, you can grow at a much faster pace.
Avoiding Credit Mistakes: Generally, a line of credit is a secure way to obtain funding to take on new restoration jobs but don’t sign on the dotted line before you have a good understanding of what you are getting into! Ask detailed questions about the terms of the loan and repayment requirements.
Keeps Close Tabs on Invoices: If you are going to use credit to fund large jobs, you have to be especially vigilant about getting paid for your work. Late invoices could turn into late payments on your line of credit, so make sure you keeping close tabs on every invoice you send out.
Find a Lender Who Understands the Industry: Working fast in a priority in an emergency industry like ours. Because of this, make sure you are working with a lender that understands your industry and will be ready to provide funding quickly so you can begin work on a new restoration job.
At More Floods, we can help restoration specialist navigate the tricky waters of finding financial assistance. To learn more about our network and the operational resources we provide, click here or call 1-866-667-3356.