ACCOUNT RECEIVABLES FINANCING
Account receivables financing is a fast lending alternative when you need to increase your cash flow. It provides you the opportunity to have money in the bank to cover payroll, invest in upgraded technology, pay off vendors, and prepare to take on large projects without incurring debt. Through a process known as invoice factoring, Universal Funding will advance you a large percentage of the value of invoices in your A/R.
Not every business is run the same way with the same goals or motivations, so it follows that not every business benefits equally from all financing options. The balance of pros and cons for factoring your invoices is different for every circumstance, but there are certainly a lot of companies who find the benefits of invoice factoring to be vital in their continued growth and success.
Small and upstart businesses often have trouble obtaining capital through traditional bank loans, especially in the current economic climate. Larger companies with lower credit ratings may be labeled high risk and quickly dismissed. This is where account receivables financing can come into play; providing a lending solution without inflated fees.
We recognize that many companies would actually be very successful if they had access to consistent cash flows. Invoice factoring is very beneficial for businesses that must wait 30, 60, or 90 days for their customers to pay. These delayed cash flows may be interrupting daily operations like the purchase of materials, paying employees, paying rent or any number of other expenses which limit production or even bring business to a grinding halt
Simply put, banks won’t lend money to a company that has bills piling up and zero inventory. Factoring is different because instead of evaluating your company’s ability to repay a loan, a factor focuses on the debt already owed to you. Once the invoices have been validated, cash is typically available in 1-2 days and business can go on as usual
If your business shows signs of struggle because operating capital is tied up in accounts receivable then factoring with Universal Funding may be a viable option for maintaining predictable cash flows.
Let us quote you a rate,and then we’d be happy to discuss how our account receivables financing option can you.