- Comparing Bank Loans and Invoice Factoring for Your Business January 26th, 2015 6:46 pm
When you need a business loan, you go to a bank right? While traditional bank loans can be an option for some companies in certain situations, they are not always the best option to get the cash you need when you need it. The time and effort it takes to qualify for a loan may not be feasible given your current situation. Here’s a quick comparison of bank loans and invoice factoring services, an alternative business financing option, so you can decide which one will work best for you.
Traditional financing often requires a significant amount of time. You fill out the application and provide documentation to the lenders, they review and analyze it before giving you a decision on whether or not to fund your loan, and once approved it could take a few more days to get the cash transferred to your account. The whole process might take several weeks, or even months, putting you in a financial bind in the meantime.
With invoice factoring, Universal Funding can get you approval within 1-3 days and have cash in hand within hours of receiving approval.
For most traditional loans you need to provide documentation on your company’s creditworthiness and your ability to repay a loan. That includes things like current cash flows, sales projections, and past debt repayment. An invoice factoring company will collect repayment from your customers, so it’s focused more on your clients’ credit than on your own. No extensive documentation and company history, and no hassle.
Adding a bank loan to your balance sheet means increasing your company’s liabilities by whatever amount you borrow. You will need to budget for repaying the loan in installments over time.
When you get cash from invoice factoring, there is no loan to repay—the transaction is based on the money your customers haven’t yet paid you. The fees for factoring are accounted for after your customers have paid an invoice in full.
Fill Out the Rate Form To Learn More
With invoice factoring the amount of money you can obtain is tied to your sales volume—the more sales you have, the more cash you can access. Fill out our quick rate form today to find out how this flexible and convenient lending alternative can benefit your business.
- Selling Invoices January 23rd, 2015 7:25 pm
As a business owner, your day does not end when you find success in terms of sales and advertising, you still need to make sure your own bills are paid on time so you are able to continue your profitable venture. Balancing assets, purchases, sales, and overhead is a never-ending job, and sometimes, the systems get the better of even the most watchful businessperson. For times when you need a little help navigating through a cash flow shortage, you can turn to Universal Funding Corporation and our receivables factoring services.
Cashing in on Valuable Assets
Other than cash in hand, some of the most valuable assets your business possesses are likely its accounts receivable. However, while most all accounts are considered a “sure thing” in terms of value and the probability of receiving payment, waiting for clients to pay their bills can seem like an eternity when it is time to order goods, pay employees, or make upgrades. Rather than waiting for customers to pay off their accounts, you can get funds almost instantly with the aid of a factoring solution. Sell invoices and receive cash; factoring is just this simple.
Getting a Great Rate
If your growing business needs a boost to get through a challenging financial situation, call Universal Funding Corporation at 800-405-6035 as soon as possible to discuss your potential financing opportunities. It is important to note that this type of service is not for every situation and business, and you must meet a few minimum requirements in order to qualify. Our team can quickly assess if selling invoices is a good fit for your needs. If we can’t provide you the funding you require, we will help you find another funding source.
If you would like to learn more about how quickly you can get access to cash, check out our rate form and consider the benefits of selling your outstanding invoices for capital that you can then use on any and all business expenses. Do not get buried under more debt or take on additional bills that you don’t have the means to pay, and instead consider selling your accounts to Universal Funding for a tidy lump sum.
- Factoring Receivables Companies January 23rd, 2015 7:20 pm
One of the most financially advantageous systems for profitable companies that are going through rough times is receivables factoring. This is the process where you sell your unpaid invoice accounts and receive cash in the form of an advance. This means being able to pay off important bills, make time-sensitive investments, or one of a hundred other things that ready capital is used for. Universal Funding Corporation is proud to offer our services to some of the biggest names in business, but we want to help struggling companies as well.
Starting the Process Right
Selecting the right factoring receivables company for your situation and particular business needs is perhaps the most important step in becoming financially solvent once again. With the difficult work of selecting the right partner, you are then able to rest a little easier as we take care of the rest. Never again watch your debt increase above what you are able to pay it off, and choose factoring rather than opening up additional lines of credit.
Benefits of Factoring
Apart from keeping your credit lines open, factoring also comes to you debt-free. This is because rather than a form on lending, factoring is a sale of your assets for cash. Waiting for weeks or months for customers to pay their bills may be too slow for your pressing needs, but by selling the invoices, you effectively get a sum comparable to a paid-in-full account, but in a fraction of the time.
How to Start
In order to begin the selling process, you first need to determine what accounts you have at your disposal. To see how much you can earn by selling your invoices, check out our rate form, and see if factoring is a viable solution for your short term-money problems. For any other questions about Universal Funding Corporation or about the factoring process, call us at 800. 405.6035 and speak with a representative directly.
- Easily Fund Expansion and Other Essential Growth January 22nd, 2015 7:55 pm
Companies that have become firmly established within their industry have to consider the various ways that advanced development can take place. Frequently, this development takes the form of expansion and the creation of satellite offices and support centers. The steps required for this valuable expansion always come with a price tag which may prevent growth from taking place at the most opportune time. Universal Funding is proud to help companies in many different fields successfully fund their next stage of growth. Your organization can access the funding opportunities we make available by selling accounts receivable.
A Valuable Financial Asset That Is Close at Hand
Client accounts and invoices that are held by your company’s AR department have a significant financial value that can be leveraged at any time. Doing so has many advantages over conventional business loans, which are likely to take several weeks to fully process. Factoring can be accomplished in a much shorter length of time, thereby allowing companies to move forward with development plans. The funds made available through factoring can help with many aspects of expansion, including:
- Relocation, transport, and storage
- Renovation, remodeling, and new construction
- The acquisition of new equipment, vehicles, and technology
- Software license purchase
- Recruitment, new hiring, and training
- Rebranding, promotion, outreach, and marketing
Expansion Requires Investment
Even though expansion is an essential undertaking for many organizations, it should not be started without the means to successfully complete. An incomplete expansion is a waste of resources and will continue to drain expenditures until the process is followed through. Making adequate funds available from the very start will help ensure that your company experiences positive growth and a strong return on the investment required for this essential stage.
Step Into the Next Stage of Business Development
Growing a company takes a lot of dedicated effort, not to mention solid financial resources. This is why working with a reliable and experienced commercial finance partner is so important. To begin accessing the value of your invoices, use our online rate form today.
- Receivable Factoring Companies January 21st, 2015 7:57 pm
Making a business as productive as possible is often how managers stay afloat during the hard times, but there are some times when even a large spike in sales isn’t enough to cover all the incoming bills. One of the best ways to get the funds you need without opening up additional lines of credit or increasing debt is through receivables factoring.
Factoring to get Cash Now
With the help of Universal Funding Corporation, you have the option of selling as many or as a few accounts as you wish, allowing you to take charge of your immediate financial needs. Rather than waiting for customers to pay off their long term purchasing accounts, sell the entire or partial account, and get cash for immediately available funds.
The Universal Difference
The characteristics that sets Universal Funding Corporation apart from our competition is our superior rates as well as our dedication to providing outstanding service. We provide everything you need to quickly process accounts receivables financing and take away the worry about missing important deadlines. Not only are we the premier choice for factoring options, we also help make your accounts department run a little smoother with clear and concise:
- Invoice statements
- Risk assessment services
- Client credit checks
Take the mystery and the stress out of receivables by selling your assets with the help of Universal Funding Corporation. Trust our experience to help guide your company toward financial solvency, even in the lean times.
Get Started Now
To get started, check out our rate form and see how much you can be earning now, rather than risking waiting too long for invoices that may never be paid. If you have any other questions about how our process works or what you need to do to get cash for your successful business, call our office at 800-405-6035. Universal Funding Corporation is prepared to help business of varying sizes get access to funds that aren’t hampered by interest or credit lines.
- Need Help Making Payroll? Invoice Factoring Can Help January 20th, 2015 5:55 pm
If you’re a business owner or manager, you know how important your employees are for day-to-day operations. So when it comes time to pay those employees, you never want to be struggling to find the available cash. Sometimes cash flow can be a little bit tight, especially if you have weekly or bi-weekly payroll obligations, but meeting payroll is a breeze by using the services of factoring companies.
What is Invoice Factoring?
As a growing company, one of the biggest concerns you probably have is cash flow. When your accounts receivable go unpaid, or you have a long payment cycle, the available cash for your business can be even tighter. Rather than stressing out about how you will come up with the cash, or trying to obtain a loan from a traditional financing source such as a bank, which may take weeks, invoice factoring allows you to take those outstanding receivables and turn them into immediate cash.
Your company sells any outstanding receivables and gets the cash you need without worrying about adding more debt to your balance sheet. Since these loans are based on your existing receivables, they won’t increase the liabilities on your balance sheet and you won’t have monthly payments due in the future.
Benefits of Invoice Factoring for Payroll Expenses
For many businesses payroll is one of the largest expenses, and requires that you have a significant amount of available cash for your employees to draw upon. Using your existing accounts receivable through invoice factoring offers several benefits:
- Generate immediate cash when you need it
- Avoid the hassle, time, and paperwork of traditional loans
- Avoid worries about whether and when your customers will pay, particularly if you have a payment cycle of 30 days or more
- Concentrate on growing your business instead of collecting receivables
- Let the factoring company worry about the cost, time, and effort to collect on outstanding accounts
- Get unlimited access to cash, based on your existing receivables, without going into more debt
Find Out if Invoice Factoring Works for You
If your company has a good track record of income, but you find yourself in a pinch for cash around payroll, fill out our rate form to determine just how much cash you could access today.
- Factoring Rates for Your Portfolio January 16th, 2015 7:58 pm
Although many people may claim otherwise, it is a fairly undeniable truth that money makes the world go round. For people at the top, this ends up being advantageous since they are often the people with all the money, but for people who are working hard to get on top, it is more problematic. Many people have the beginnings of a very successful business, but struggle getting over the hump of growing into a bigger business. For these types of situations, Universal Funding Corporation is here to provide a solution. Continue reading →
- Find the Best Factoring Companies for your Business January 15th, 2015 11:25 am
There are hundreds if not thousands of financial assistance programs out there in the business world, and trying to find the one that meets your immediate needs can be difficult. Many businesses have solid borrowing options that help them meet long term purchasing goals, but sometimes, a company must have cash for necessary expenses that cannot be obtained from their traditional lender. This type of situation is perfect for receivables factoring. Universal Funding Corporation is here to help you get the money your business must have to get on top once again.
- Streamline AR Operations Through Factoring January 15th, 2015 11:24 am
Every department within a company has to function at optimal efficiency if the entire organization is going to remain mobile and responsive to changing market forces. Streamlining operations can be a complex undertaking but remains a necessary strategy for success. The accounts receivable department of your organization is likely to be one of the busiest and most in need of managerial support. Departmental function can be quickly made more efficient by simplifying the client account load that your AR team is supposed to handle. Factoring invoices is one good solution to this perennial problem and has the added benefit of generating a large amount of working capital that can be put to work in many useful ways. Continue reading →
- How Factoring Can Give You a Competitive Advantage in 2015 January 15th, 2015 11:23 am
Every year companies face increasing pressure to remain competitive. This push frequently results in a reevaluation of various operational procedures, including the generation of capital. Competitive advantages typically come with a price tag and decision makers are sometimes faced with the choice of pursuing an advantage or playing it safe and saving money. This conflict is familiar to many decision makers but there is a simple solution that can give you the power to gain a serious advantage. An accounts receivable factoring company such as Universal Funding can provide you with the working capital necessary to pursue the outcomes that will give you an advantage in your industry.
Your Competition Will Not Wait
Decision makers and other business leaders understand that pressing an advantage is the only way to gain an edge over the competition. The companies you compete with for market shares in your industry will not hesitate to further their own interests. This is why you need to leverage your existing financial resources with the help of an accounts receivable factoring company. The money gained from factoring can be used for all kinds of important things, including:
- Hiring new employees
- Promoting key team members
- Competitive reorganizing
- Seasonal promotions
- Advertising and outreach
- Relocation, construction, renovation, and remodeling
- Branding and rebranding
Opportunity Might Pass You By
If you are not willing to take the steps necessary to press your advantage, the opportunity to do so may very well pass you by. No organization can afford to let the balance of advantage tip towards the competition. The capital that factoring makes available will be ready to use in a matter of days, not weeks or months, and can be put towards any end you choose.
Do Not Delay
Universal Funding makes it easy to leverage the economic power your company already holds. Use our online rate form to discover the true value of your client accounts. You may be surprised at just how much working capital can be generated with our help.
- How Open Invoices Can Hurt Your Business January 13th, 2015 9:06 am
For mid-size businesses that invoice regularly, open invoices can be a pain when you are in need of money. An open invoice is one that has not yet been paid in full. There are many different reasons why an invoice may be open. It could be that a customer has terms and is not yet required to have made all of their payments. It may be open because a customer has chosen not to make any more payments, leaving your business to track them down and request payments. Open invoices can hurt your business by affecting your cash flow. You can increase cash flow with factoring your open invoices through Universal Funding.
- Keep Control of Your Company through Invoice Factoring Financing January 13th, 2015 9:04 am
Many business owners are excited by the prospect of financing and their ability to use outside funds to expand their businesses. Besides family and friends, there are basically four types of investors:
- Venture capital firms
- Banks offering business loans
- Angel investors, and
- Crowd funders
- Are the Advantages of Factoring Right for Your Organization? January 09th, 2015 11:08 am
Even the most successful, well-managed business can run into occasional cash flow problems. The problem of a shortfall of working capital can be solved in a number of ways. Each such financial solution has its own set of advantages that makes it more agreeable over another option depending on the affecting circumstances. A business loan might be right for one organization while selling accounts receivables might be best for another. Understanding the distinct advantages of factoring will help your financial team make an informed decision the next time a cash flow solution needs to be explored.
- Why Factoring Is an Effective Tactic for Increasing Profits January 08th, 2015 12:56 pm
Is your business poised to grow but you just can’t seem to find enough working capital to make your growth dreams a reality? For many small and medium businesses, the realities of meeting day-to-day obligations like payroll, leases, and inventory costs prevent them from ever reaching their true potential. Learn how invoice factoring increases profits so you can decide if it’s the right choice for your business.
The Cost of Growth
Every company wants to increase profits, and if you offer a great product and have a large and potentially growing customer base, you should be able to make more money, right? Not necessarily. Continue reading →
- 3 Industries that Can Benefit from Invoice Factoring January 07th, 2015 10:46 am
While just about any business could benefit from better cash flow and more available money to grow the company, there are a few industries where working with an invoice factoring company is particularly beneficial. For these industries cash flow is critical, and payment on outstanding receivables might take a little bit longer than normal. If your business is in one of these industries, consider whether selling your outstanding invoices to a factoring company might be an option. Continue reading →