Like it or not, doing business with large companies usually means you have to offer 30-90-day terms.
Doing so offers small businesses a way to win, and retain, some potentially lucrative business contracts.
As a matter of fact, many large customers simply demand these payment terms as a condition of doing business. The problem, of course, is that waiting up to 90 days to get paid can wreak havoc on your company.
Unless you are exceptionally well capitalized, you will risk running into cash flow problems as a result of offering terms. You may risk missing supplier payments, being late on employee paychecks or missing out on marketing or growth opportunities. A few missed payments and your company can quickly go into an irreversible financial tail spin.
Even companies that are healthy on paper can enter a tailspin. The balance sheet might show plenty of money to take care of obligations, but if that money isn’t in the bank, it might as well not exist.
This is where Universal Funding can help. We can help solve this problem by factoring invoices, which significantly reduces the time it takes for you to collect your revenues. Factoring provides the working capital you need to meet current expenses, and the money you receive never has to be repaid. Also, your customers retain their payment terms and are not required to pay any faster.
Universal Funding’s invoice factoring programs can provide your company with financial stability which can be used as a platform for growth. Our factoring lines will increase with your growing sales, making them a flexible financing solution for growing companies.
There’s no reason a company should go into a financial tailspin, especially when Universal Funding is here to help.