In addition to the obvious benefits of fast, reliable cash, more profits and reduced expenses that invoice factoring creates, there’s another important benefit that factoring offers:
Credit screening of your customers.
Perhaps the most important component of a factoring transaction is the credit quality of your invoices. This is critical because your factoring company uses those invoices as security for the transaction. Because of this, your customers should have good commercial credit scores.
Most businesses, though, never bother to check their customer’s credit. When you work with Universal Funding, we do it for you. That’s a major benefit to you because it allows you to leverage the credit worthiness of your customers to your advantage.
If the credit check on a potential new customer comes back as high-risk, you have the opportunity to not accept the new business, or modify the terms, and minimize the risk of losing money on them. On the other hand, a commercial credit check could show a long history of paying on time and in full, which obviously would be welcome news.
Even better, these credit checks are an included part of your factoring agreement when you factor with Universal Funding. Most of us have years of experience in reading and interpreting these credit reports and do so on a daily basis. That makes working with Universal Funding like having your own credit-analysis department!
Our ultimate goal is to see your business grow. That’s why we offer some of the lowest rates in the industry, gladly help resolve tax issues, provide credit reports on your potential customers and work our tails off to make sure you get funds when you need them. Whether your company is facing new challenges or new opportunities, we are here to help.