Solar Panel Installers: Improving Cash Flow And Growing Operations
Solar panel installers are gearing up for an influx of business. Residential homes, apartment buildings, and even corporations are hiring solar panel installers to convert structures to clean and efficient power. In order to meet these demands, solar power installers are using alternatives to traditional bank loans.
Factoring For Solar Panel Installers
Installing solar panels is rarely a small project. When there are multiple clients with open invoices due to payment schedules of 30 days or longer, cash flow can get tight. In order to ensure ample working capital to take on future customers, solar panel installers are using factoring services. Factoring converts open invoices to working capital within 24 hours, so solar panel installers can maintain a steady cash flow without taking on debt from short term bank loans.
Large Customer Orders
Occasionally, a large customer order walks through the door, which presents a great opportunity for increased revenue. Large orders can create problems because solar panel installers may not have the supplies or workforce to handle a big request while simultaneously devoting resources to regular orders. To resolve this quandary, solar panel installers are using purchase order financing. Purchase order financing is an advance of working capital so large orders can be filled while still making good on smaller requests. Purchase order financing is a debt-free solution, and the amount owed gets rolled into the invoices for large orders. Solar panel installers use purchase order financing as a means of expanding their customer base to larger client accounts without having to rely on loans or passing on big opportunities.
Business Lines Of Credit
Instead of taking out loans, many solar panel installation companies are using business lines of credit as an extra source of working capital. Unsecured business lines of credit are structured around the overall profitability of a solar panel installation business. Unlike traditional bank loans, unsecured lines of credit do not require any capital, and with revolving options, solar panel installers can maintain a renewable source of working capital and increased purchasing power to handle the summer sales rush.
Financing For Your Solar Panel Installation Business
BG Capital Funding Group offers debt-free working capital solutions for solar panel installers, as well as other businesses in the alternative energy industry. Whether you are trying to meet an increased demand from clients, or if you are trying to position your business for growth, we can help. Contact our offices today to learn more.