Invoice factoring has been around, in some form or another, for centuries. It’s one of most tried and true forms of business financing out there.
Like all things in this day and age, technology has impacted the evolution of factoring. Businesses have begun to sprout up offering online auctions for a company’s receivables, where a business owner can post an invoice and have random investors buy it for a discount.
In theory that means an easy way to generate quick cash flow on an as-needed basis. Plenty of companies have tried these online factoring services, but some problems are beginning to surface. Problems that don’t happen when using a factor like Universal Funding.
When using an online auction-type factor, you never know who is buying your invoice. In fact, one invoice could be split between more than one investor. That may not seem like much a problem… until you consider that each invoice will be verified by the investor who buys it. That means your customers will be the ones bombarded with calls attempting to make sure the invoice is genuine. Do you want your customers dealing with the inconvenience and frustrations of that? That’s especially true if you do repeat business with the same customer over a long period of time. That customer is going to get awfully sick of fielding phone calls from different people every time you invoice them!
By factoring with Universal Funding, you still get a great rate and you get your cash just as fast. Plus, you always work with the same person and you know who is buying your invoices and can rest assured you and your customers will be treated with complete respect.
Unlike the auction sites, we are not a one-shot wonder factor. We build relationships with our clients and debtors and help businesses grow. We believe in and have adapted the latest technologies into our business, but one thing we’ll never stop doing is partnering with our clients and investing ourselves personally into their growth and success.
As our industry evolves, you can be sure our commitment to you and your business never changes.
Invoice factoring helps many industries, including manufacturing
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.
People who don’t own businesses have this glorified vision that business owners live the high-life. Lots of time off, yachts, expensive cars, the kids in private school… Of course, business owners all know that isn’t even close to the truth. At least, not for the ones who work hard every day to keep the business running and, hopefully, growing.
If you are like so many other U.S. business owners, the only time off you get is when you fall asleep at your computer trying to figure out how to finance the next big order. The yachts and cars might happen in your dreams… but that’s it.
As a business owner, you work hard, and we think you deserve to be rich.
But being rich goes far beyond money.
We want you to have the time to attend your child’s baseball game, to spend a day at the lake (whether on a yacht or sitting on a beach), or to take your spouse out to a nice lunch in the middle of the day.
While at work, we believe you should have the confidence in knowing you can pay your employees on time, every time. You shouldn’t worry about IRS tax problems getting in the way of securing financing. You shouldn’t have to worry about taking on new debt and then struggle for years to get out of it. You should rest easy knowing you can afford to take on new clients and can handle large new orders.
Universal Funding can help with all of that. We are a business finance company, but we’re also much more than that. Our lines of capital do provide peace of mind regarding cash flow, create financial stability, and grow as your company grows. Our financing makes new clients and big orders easy to handle. It’s true that businesses that partner with us make more money and generate more profits than their competitors.
But our financing, which includes so many other free benefits, also translates to more personal time for you. With more money rolling in, and more time to enjoy it, you’ll feel richer than ever.
To find out how we can help you, simply fill out and submit the rate inquiry form on the left. We’re excited to hear from you.
Choosing to factor your invoices is a smart decision.
Deciding which factoring company to use can prove daunting, however. Hundreds of factoring companies exist in the United States alone, so how can you know which is a good match for you?
While factoring is a business arrangement, you’re likely to have a fair amount of personal contact with the people at the company you choose; more so than with a typical bank relationship. The ability to speak with your account manager needs to be as simple as picking up the phone and dialing. No complicated phone menus, just a real person answering your call.
Also, the best factoring company for you must:
- Specialize in the industry you do business in, ensuring a proper base of knowledge and experience with the unique issues you face.
- Demonstrate a track record of stability, responsibility, integrity and strength.
- Offer access to a credit department staffed with experts in the industry
- Employ a professional collections staff who treats debtors (your customers) with the same level of respect that you do.
- Use current technologies to offer you 24/7 access to up-to-the-minute status reports on your account.
- Offer no-charge business advice and tax assistance.
- Make quick decisions and provide your money fast.
Of course, low rates and easy-to-understand terms are important too, but look for a factoring company that is interested in building a relationship with you and your business. Find a company that has similar goals and ideals as yours and you’ll enjoy a smooth path to financial freedom and healthy profits.
We hope you’ll contact us, and let Universal Funding prove that we are the best company for your needs.
“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 was 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 15th 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 a 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 of factoring: 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 happens all the time: A factor will get a call from a company that needs business financing but was recently declined by a bank.
These potential clients are fed up with the process of applying for financing and do not understand why banks don’t see the same growth potential the business owner does.
“If they just provided the cash, I could double my business!”
Banks, though, do not look so much at growth potential as they do number of years in operation. Banks look at hard assets, real estate and equipment that can be used as collateral. Simply put, banks lend against things you own.
That works great for companies with a long history of outstanding performance and flawless balance sheets.
If a company hasn’t been in business long, is in a growth phase or in the process of a turnaround, though, there may not be much for a bank to look at.
Few assets plus a short track record equals no cash.
But, let’s look at this from a factoring perspective.
When those prospective clients call and express their frustration with the financing process, a factoring company, such as Universal Funding, can often put them at ease and explain how it can help. Universal loves to look at a company’s growth potential and listen to the passion of the business owner as he or she explains what could be done with immediate cash.
Many factoring clients are companies that haven’t been in business long, or started out that way, but have since experienced vast growth and many years of profitability.
Watching clients grow is proof that factoring works. Plus, a company that factors will never outgrow its financing. As the company grows, its line of financing grows too.
If your company has had trouble getting approved for bank financing or just wants to try a different way of funding operations, contact us today!
The news from places like North Dakota and East Texas flows as quickly as the oil from these now-booming areas.
In Williston, ND, the oil industry is causing as many headaches as benefits. The housing market is outrageously expensive; if housing is even unavailable. College students are leaving school for oil jobs. Others are taking classes just to take advantage of cheap student housing while they work the oil fields. As rents continue to rise, the city’s elderly and other established residents will struggle.
But… the oil boom is creating a massive number of jobs and generating truckloads of cash for people and companies involved in the industry.
Universal Funding has financing programs available to provide immediate capital to many of these oilfield service companies. Companies that provide welding, drilling equipment, maintenance, transportation and other services to active oilfields can benefit from the rapid financing provided by invoice factoring.
In most cases, payment arrives within 24 hours of generating an invoice, which means instant cash infusion and eliminating the 30, 60, 90 or more day wait often associated with oil industry payments.
Companies that factor incur no debt because they don’t borrow money. They just get quick cash that allows them to continue operating and grow. Plus, they don’t have to deal with the tedious tasks of collecting on their invoices, dealing with late payers and wondering how to bridge the gap between daily operating costs and finally getting paid.
Factoring is a perfect fit for companies working in the oil industry and money is available right now for those who need it.
Contact us today to find out how much money we have for you!