We all know the economy has been in the dump the last few years. And yes, that has made things considerably more difficult for many businesses. Things like getting bank loans, offering terms to customers and waiting longer to receive payments have wreaked havoc on many small and medium-sized businesses.
None of this is new. The stories have been told on blogs and finance sites and in newspapers over and over again.
Factoring companies, including Universal Funding, have stepped up and shown many businesses how accounts receivable financing can bridge the gap in a slow economy and keep the cash moving. But what about in an improved economy? Does invoice factoring still have a place when an economy is growing?
You better believe it.
In fact, factoring might even be of more benefit when the economy as a whole is growing. One of the top benefits of factoring is the opportunity to grow a business. This is possible because factoring makes cash turn over faster, meaning a business has the ability to take on more orders, purchase more supplies and hire more employees. It also gives business owners more time to focus on what they do best: make smart business decisions.
In a slow economy, a manufacturing company, for example, might factor its invoices to make up for extended terms it offers to its customers, or to make sure it can pay its suppliers and employees on time.
In a growing economy, that company might experience an increase in orders but not have the cash available to fill them. Invoice factoring helps businesses free up capital to fulfill those incoming orders, allowing the business to grow immediately alongside demand, rather than limiting growth as a business waits for invoices to be paid.
Whether the economy continues to stagnate or gains momentum remains to be seen. Whatever happens, factoring your invoices with Universal Funding can put you in the best position to succeed and grow.