Factoring Vibe

“I had to make a choice: close my business or not.”

This quote comes from a business owner who makes money, employs people and has a steady client base. In fact, the business just secured a contract with a large company that will help the business hire more people and grow.

So why would the business owner wrestle with the idea of shutting down?

Because there’s a big problem.

The large company pays its invoices on the 15th of every month but the small business must pay its employees on the first and 15^th each month.

That means the small business will need to pay its employees before it receives payment from the large company. This small business doesn’t have the cash available to buy all of the necessary supplies for the new client and pay its employees on time.

What options does the business have? Delay paying the employees? Apply for short-term credit with their bank? Let its new client go? Close up shop all together?

Paying employees late isn’t a real option. They’ll take it as a sign of trouble and bolt at the first opportunity. Seeking credit from a traditional bank would never be finished in time because of the rigorous approval process.

Closing a profitable business would be an absolute shame, but if the money’s not there, closing remains an option.

But there’s a solution. Solving this business’ cash flow problem is as easy as accounts receivable financing.  This type of financing would allow the business to access the cash tied up in its receivables, purchase supplies, pay vendors, meet payroll and stay in business.

That’s the business Universal Funding is in: helping companies grow and succeed.

Even profitable companies experience cash flow problems; it’s a part of doing business. It’s important to know that if your business is experiencing difficulty meeting payroll, paying vendors or buying necessary supplies to fill orders, there are solutions available to you. Even if cash flow isn’t a problem today, it could be tomorrow. When the problem arises, know that Universal Funding has your back and will get you through it.

It’s what we’ve done for decades and what we’ll do for decades to come.

-Travis Griffith

They say cash is king.

When ample amounts of it are flowing through your business, they are right. But when there’s a lack of cash, the only thing king-sized about it is the trouble it creates.

For many businesses, keeping cash as king is as easy as factoring.

Factoring, in its simplest terms, is just another word for getting paid immediately. It enables businesses to avoid sending invoices to customers who take upwards of 60 days to pay. Instead a factor, such as Universal Funding, buys those invoices, effectively paying the business right away. The invoices are then forwarded to your customers, who are given the luxury of waiting to pay. Many companies rely on factoring because they simply can’t afford for their invoices to go unpaid for two months.

Instead, Universal Funding does the waiting for you.

Offering payment terms can be challenging when working with other businesses. Waiting 60 days to get paid can seem like a lifetime when you have bills that are due in 15. The situation can get even harder when a potential customer seems promising but then asks for lengthy payment terms. Is the opportunity to sign the customer and risk a cash flow problem better than losing out on the customer’s business altogether?

Working with Universal Funding can eliminate that worry and allow you to take on the customer while knowing you’ll be paid immediately.

Universal Funding has over 65 years of combined experience in the business finance industry. We understand the needs of businesses and the tools that help pave the way to success.

A strong cash flow is vital and factoring provides the capacity to grow when other forms of financing may not be available. Factoring can also provide access to credit and collection services at a fraction of the price of doing it yourself (Universal Funding includes these services at no additional cost).

Factoring allows your business to be more competitive and make more money.

In short, factoring makes cash king again.

-Travis Griffith