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The trend towards outsourcing tasks and focusing on core competencies continues in the corporate world as more and more companies are finding outsource organizations to take over work that is not central to generating revenue. These days, companies have outsourced professionals doing accounting, payroll, IT support, security, human resources and food service, just to name a few. In the days before this outsourcing began, companies would hire a staff of maintenance experts to take care of the buildings and the grounds. But even that has changed as more and more companies are now turning over their facilities maintenance operations to professional organizations.
The lure of outsourcing facilities maintenance is easy to see. The company no longer pays payroll taxes or does any training on maintenance staff anymore. The costs for having the staff onsite through a professional outsource organization are significantly lower than if the company did the maintenance itself. Utilizing a facilities maintenance company allows an organization to cut costs on activities such as changing out light bulbs and repairing broken windows. As with an sub-contracting agreement, there is a variety of services the company can choose from to be covered by the main fees and then a list of other charges that can be incurred in various situations. It is a great way for an office building owner to save money, but it is a rough business for the facilities maintenance companies themselves.
Who The Facilities Company Works For Depends On Who You Talk To
One of the unique elements of facilities maintenance that does not occur very often in other outsourcing arrangements is the potential for several layers of communication between the tenants and the maintenance staff. For example, a company that is leasing an office space may need to have a broken light bulb replaced, but the building owner wants all maintenance requests to go through the main office. So the tenant has to submit a maintenance request and then wait for the building owner to summon the maintenance crew. It can be frustrating for the tenant, but it is a necessity for the owner.
The reason that building owners treat the relationship between facilities maintenance companies and tenants this way is the manner in which the maintenance contract is structured. As was mentioned previously, the contract may list a series of items that are covered by a monthly fee and a schedule of costs for other tasks. If changing light bulbs is not covered by the monthly fee, then the building owner would have to approve the charge in order to get the job done. It can seem like a lot of work for a light bulb, but it goes a long way towards saving the building owner money and helping the building to generate a profit.
Administration For A Facilities Maintenance Company Can Be Expensive
A facilities maintenance company usually allows for the costs of supplies by either charging the customer a monthly supplies cost, or by putting the cost of certain supplies into the monthly fee. The real costs that come with running a facilities maintenance organization are personnel and administrative costs. It can get extremely expensive if the customer runs a 24-hour facility and maintenance has to be provided at all times. To have a staff on-call 24-hours a day is extremely expensive in both personnel and the dispatch staff that handles calls from customers. If the maintenance company puts personnel onsite 24-hours a day, then the costs get even higher.
Creating and administering contracts for a facilities maintenance company is a full-time job that requires experienced administrators. Customers usually have their own special requests and all of those requests have to be kept straight to keep the customers happy. The contract administrators are responsible for making certain that the company has the proper personnel to execute the contract and that the customer understands the provisions of the agreement. Customers will often request maintenance work that is outside the confines of the agreement and then wonder why there is an extra charge. Being the contract administrator of a facilities maintenance company is not an easy job, but it does pay well.
Maintenance Clients Are Not Always The Most Prompt Payers
One of the things about a facilities maintenance company is that it crosses over a lot of different industries. A facilities maintenance organization provides services to any company that owns an office building, which includes a lot of companies. When you have a business that cuts across industries like that, you tend to pick up a lot of different invoice paying trends. Any facilities maintenance company owner will tell you that variety is not always the spice of life when it comes to past due invoices. A maintenance organization desperately needs cash flow to keep its operations going and past due invoices do not help.
If you own or run a facilities maintenance company, then you are very sensitive to how important cash flow is to your organization. If you use bank funding, then you are probably also well aware of just how expensive and unreliable bank funding can be. For your facilities maintenance company, invoice factoring is the answer to your cash flow issues. 1st Commercial Credit is an expert in providing invoice factoring services to the facilities maintenance industry. We have years of experience in utilizing our flexible factoring services to create the cash flow that you need and we do it without ever asking you to consider a loan or even give your company credit score.
1st Commercial Credit Makes Maintenance Easier
1st Commercial Credit is not a bank and we do not administer loans. We are a worldwide leader in invoice factoring services for small to medium sized businesses and we have the program you need to solidify your cash flow. We utilize your clients' business credit scores to get you the cash you need and we never ask for your company's credit score, ever. We advance you funds based on the face values of your approved invoices to creditworthy clients. We deduct a small lending fee per invoice and then advance you the rest of the cash. We can approve invoices in a matter of minutes and advance the funds in 24 hours or less. We work that fast because we know you need the cash quickly. As long as you have invoiced sales, then you have a way to keep your business line of credit funded and you never have to beg for a bank loan to finance your operations.
Your facilities maintenance company requires a steady supply of cash to stay in business. 1st Commercial Credit understands your cash needs and has the invoice factoring services you need to meet all of your ongoing operations. We will be the financial partner you have been looking for that will keep your service technicians paid and your administrative personnel on the job.