- Typical Time Tables for Business Funding Options April 24th, 2015 7:28 pm
When your business needs an influx of cash, your first approach is often to examine your open invoices. This helps identify customers who are past due, and ones who will be paying in the immediate future. If you need capital before those invoices are due, waiting for business loan approval is not likely to be an option. Selling open invoices is a faster funding solution than traditional lending avenues, providing your business with capital more quickly than waiting for invoice payments or bank approval. Financing receivables also allows you to access cash when you do not want to incur debt.
Time Tables for Accessing Cash
A business loan can take weeks or months, while the entire process of financing your receivables can take only days.
A conventional loan requires:
- In-depth examination into your credit standing, company history and cash flow
- Possible waiting period of several weeks or more for approval, and a further wait to receive the funds
- Months or years of budgeting for monthly repayment of the loan
- Months or years of debt on your balance sheet
Receivables financing requires:
- Quick assessment of your business, customers, and invoices
- As little as two days for approval, with cash available the same day your invoices are received
- No budgeting for monthly repayment since the transaction is simply a payment for your invoices
- No debt on your balance sheet since receivables financing is the sale of your assets, not a debt
Selling your invoices is considerably faster and avoids restricting your cash flow for months or years while you make payments to the bank each month.
Find Funding Without the Wait Through Receivables Financing
When your company needs an influx of cash before your customer payments are due, waiting for bank loan approval is not an ideal option. You can reduce the waiting period to access capital by as much as weeks or months with receivables financing. Fill out a rate form to get your rate proposal and the application started.
- Funding Options for Operating Costs April 23rd, 2015 5:32 pm
Cash flow problems must be resolved quickly when your company’s operating expenses cannot be covered. While fixed costs are predictable, revenue sometimes is not as easy to estimate. Months when cash levels are low might leave you struggling to find a solution to manage your company’s lease payments, vendor agreements or equipment rentals. When your business urgently needs funds to cover upcoming operating costs, your open invoices may not provide payment quickly enough to meet your needs. However, you can access cash for those open invoices quickly by selling them to a factoring company. Invoice factoring often gets you funding faster than waiting for your customer payments to arrive.
Funding for Upcoming Costs
Your company’s fixed operating costs must be addressed each month, but periods with low cash levels make this task difficult:
- Your open invoice amounts, especially those due in 60 or 90 days, may not provide the influx of cash you need before your overhead expenses are due.
- Business loan funding from a bank will most likely not arrive in time to cover your current costs, as the approval process for banks often takes weeks or months.
- Finding a solution to this dilemma can affect all areas of your business by delaying projects, repairs or supply purchases or disrupting payroll.
Instead of delaying or missing your lease payment, payroll, taxes, or other monthly expenses, you can turn your open invoices into cash by selling them to Universal Funding. Factoring your invoices allows your business to:
- Get approval for funding within days instead of weeks or months.
- Access cash for your expenses within hours of approval.
- Sell an asset instead of incurring debt.
Traditional business loans may not meet your urgent need for cash. Factoring invoices get you access to cash to cover those expenses in time to avoid late fees or missed payments.
Cover Your Fixed Costs With Factoring
Universal Funding can provide your business with cash quickly by purchasing your open invoices. To find out how fast you can access cash to cover your monthly expenses, fill out our online rate form to request a no-cost consultation today.
- Make the Most of Accounts Receivable with the Right Financing Option April 22nd, 2015 5:28 pm
In many instances, the right financing can be a crucial aspect of achieving a variety of business successes. These include things like developing new products and services, or even undertaking debt management procedures to ensure continued growth is possible. Both of the above examples can greatly benefit from receivables financing, an innovative program that affords a rapid influx of funds when your business needs it most.
The Basics of Receivables Financing
While funding is important, many traditional options may not be suited to every business. This is especially true of things like bank loans and lines of credit, which can involve lengthy approval periods and accrue harmful debt in the process. For businesses requiring funding in under a week, this is going to be a faster option.
Receivables financing offers swift funding without massive debt accumulation. A company’s open invoices can be sold to a factoring company, who will then management payment on behalf of customers. For those businesses struggling with poor credit histories, or even businesses new to the marketplace, receivables financing can be an ideal option to obtain the funding you need when you need it most.
How to Determine If You Are a Good Candidate
While receivables financing can be a smart choice for many businesses, it’s important to determine whether you’re a good candidate before making any final decisions. This entails review of a few key elements to establish if such programs are a good fit for your business.
In general, those well-suited to receivables financing will have invoice re-payment periods extending beyond 15 days. Additionally, businesses with large amounts of debt or tax issues can also greatly benefit from this program. Acquiring loans via other methods can prove difficult for such businesses, which may be looked at as a risk by traditional lenders. We primarily look at the financial health of your clients in determining final approval. If your customers are big corporations, chances are we’ve previously worked with them and their vendors.
Ongoing Business Success Can Be Yours
When it comes to fast and efficient financing, Universal Funding Corporation has what it takes. Our innovative programs can assist numerous businesses in securing they funding they need to perform to the best of their ability. Please submit our rate form so that one of our associates can determine whether receivables financing is a good option for your current needs.
- How to Deal With Cash Flow Problems April 21st, 2015 5:32 pm
Whether your business is slow or your products are flying off the shelves, you may still run into cash flow problems. These problems aren’t necessarily the sign of a failing business, and many successful companies run into problems when invoices aren’t paid in a timely manner. Acquiring new debt and taking out a bank loan can take months and extensive time and research, so what are your options when your company hits a wall?
Are Your Invoices to Blame?
While some may tell you to get your invoices out quickly and set definite payment terms with clients, you may deal with corporate or government clients that are bound by their own policies. Many of these require up to 60 days to pay invoices, and you are left holding the bill in the meantime. Because these invoices often involve large amounts of money, you end up without cash to pay your payroll and meet your monthly obligations. It’s always important to get your invoices out quickly, but this won’t solve all your problems.
Do You Want to Turn to a Bank Loan?
In the past, companies have turned to a short term business loan from a bank or traditional lender for access to cash. With restricted lending requirements and stricter guidelines in place, getting a bank loan is more difficult. Without good personal credit and extensive documentation, it’s difficult to get a bank loan, and you may still end up waiting for 1-2 months while your loan processes.
Will Accounts Receivable Factoring Work for You?
Companies that need liquid cash quickly turn to an accounts receivable factor program. With this process, a factoring company like Universal Funding will buy your invoices and advance you a large part of the payment that is due. Then the company will collect the remaining balance and rebate your company once it is paid. This gives you access to cash fast without the added hassle of collecting money. Upon approval, your invoices can be purchased and funded within a few hours.
Fill Out a Rate Form
If your business is struggling with cash flow problems and you need a simple, viable option to get ahead, fill out our rate form today to learn more about how we can help you.
- Low Invoice Factoring Rates Can Help Your Business Succeed April 20th, 2015 9:27 pm
Most businesses will need financing at some point to maintain a successful outlook. However, conventional funding methods like loans and lines of credit may not be suitable for every business. Bank loans often entail lengthy approval periods, which can be frustrating for those in desperate need of capital. Additionally, other funding methods can result in the accumulation of harmful debt. In this event, invoice factoring can be an ideal method of securing the financing your business needs at a much faster pace.
Understanding Invoice Factoring
Waiting for payment on outstanding customer invoices can seem to take a lifetime when badly in need of working capital. That’s where invoice factoring comes in. This method entails selling off invoices to an interested third party, who will then provide payment on behalf of customers. As a result, your business can keep functioning at peak performance without incurring additional debt in the process. This can be crucial for those companies with poor credit histories, as well as emerging businesses looking to make an impact in a chosen market.
Why Keeping Rates Low Is Important
Keeping factoring rates low is essential to ensure you get the most out of the financing process. A reliable factoring company will look at many different aspects of a business in order to determine the best rates for your particular needs. For instance, things like the value of the invoice in question, as well as a business’s past credit history, can have a significant impact on rates. With the right factoring company in placea business is guaranteed financing solution suited to its needs.
The Funding You Need, When You Need It Most
Those seeking workable financing solutions with ultra-low rates need look no further than Universal Funding Corporation. Our selection of financing programs can help virtually every business acquire the support they need to continue to thrive, no matter their financial background or length of operation. Please see our helpful rate form to determine whether our factoring program would be right for your business.
- Three Parts of the Invoice Factoring Process For Your Business April 17th, 2015 10:09 pm
Invoice factoring is an excellent alternative to a traditional bank loan when your business has an immediate need for cash. Accounts receivable factoring companies can provide you with funds so quickly because they are purchasing an asset, your invoices, rather than approving you for a loan. The process is much less complicated than a traditional bank loan, with a few simple steps for your business to take.
- Cover Your Payroll Expenses with Accounts Receivable Financing April 16th, 2015 5:39 pm
Accounts receivable financing is an excellent alternative to a business loan if your company is experiencing low cash flow. Financing your receivables is a faster and less complicated process than waiting for bank approval, and that is especially important when your company urgently needs an influx of cash. You may be able to postpone special projects, expansion plans or even compensation to certain vendors until your invoice payments arrive. However, disrupting payroll can be extremely difficult for your employees and cause major problems for your business. Receivables financing can get cash for your business within days and help you make payroll.
- Get the Facts On Accounts Receivable Factoring Rates April 15th, 2015 4:05 pm
While obtaining working capital can be extremely important for a business to thrive, traditional lending routes may not be ideal for every enterprise. This is particularly true for new businesses, as well as any companies struggling with a poor financial history.
When a business is in need of a quick influx of low-risk capital, getting a couple quotes for accounts receivable factoring rates may be worth considering. This financing method can afford a business the funding it needs to cover essential operational costs or unexpected costs. Additionally, factoring won’t accumulate debt like other lending programs, which can be detrimental to the overall success of a business.
- Industries That Can Benefit From Selling Receivables April 14th, 2015 5:13 pm
Selling accounts receivables is a great way for companies to bridge the gap between sales and cash flow, especially if you work in an industry where your customers are not expected to pay for long periods of time—30, 60, or even 90+ days after the sale is made. In the meantime if you need more cash to help keep operations running smoothly, you can sell those receivables and get working capital right away. Because of the nature of these transactions it won’t be a fit for every company, but there are certain industries that will benefit more than others.
- The Top 10 Factoring Companies April 13th, 2015 1:01 pm
When your business is looking for alternative funding strategies that go beyond traditional bank loans, there are plenty of other opportunities you can take advantage of to get the cash you need. One of the most popular financing methods that has emerged over the past few years is invoice factoring or accounts receivable financing. Here is a quick comparison of the top 10 factoring companies, according to TopTenReviews.com.
- Business Growth With a Reliable Invoice Factoring Company April 10th, 2015 6:58 pm
Securing the right financing solution is essential to maintaining a successful and lucrative business. While many rely on traditional funding methods such as loans and credit, these may not work for everyone, especially those struggling with poor financial histories.
For those in search of more innovative financing options, finding a reliable invoice factoring company may be the best bet. These companies will work with you to devise a suitable approach to obtaining the capital your business needs to experience continued growth and success.
- Ways to Keep Cash Flowing for Your Business April 09th, 2015 5:07 pm
Money is the blood of business. Without the constant flow of money, businesses simply cannot survive. There are many different business techniques for keeping the cash flowing for your company. Three important methods for keeping your business flowing with cash include bringing in new customers, staggering payment due dates for your clients and using accounts receivable financing from Universal Funding.
- Improve Cash Flow by Selling Invoices April 08th, 2015 8:57 pm
Sometimes money can be tight for your business, and it’s not necessarily because you are bad at managing your cash flow. For many companies it’s the result of several elements, including:
- Long payment cycles from the original sale of goods or services to eventual receipt of cash
- Slow-paying or non-paying customers
- Unexpected operational expenses that significantly reduce available cash
- The need to purchase raw materials or inventory to meet orders and sales
If you find your company in these situations, you can sell invoices for improved cash flow without increasing your debt load or taking a significant hit to your bottom line. The process is quite simple, and is utilized by many different businesses in a variety of industries today.
- Factoring Receivables Makes Use of Existing Invoices to Achieve Success April 07th, 2015 4:44 pm
Success in the business world often requires the appropriate financing to ensure essential costs remain covered at all times. For many businesses seeking alternative funding programs to best suit their needs, factoring receivables can be a great option to keep debt low while also obtaining financing in a timely manner.
Factoring receivables does not entail the lengthy waiting periods commonly associated with bank loans, which can be frustrating for those enterprises in need of funding quickly. This financing method also prevents large amounts of debt from accumulating, which can serve to cause future financial strife for the business in question. Continue reading →
- At What Point Is Turning to Accounts Receivable Financing Appropriate? April 06th, 2015 4:26 pm
When your business has been successful for years on end, there are certain funding options that might slip under your radar. When you find your business in desperate need of quick cash, however, it’s important to know what options are available to you. Accounts receivable financing from Universal Funding is a great option for businesses that gross a minimum of one million dollars annually and are in need of some monetary assistance.
When Your Business Needs Cash