Every company has that story about a client they took on, whom they believed would deliver untold opportunities for new revenues, yet ended up leaving them holding the bill. Bad debt losses are a part of doing business. Yet just because your past stories have had unhappy endings, doesn’t mean that you can’t turn those scenarios around to benefit you in the future. Financing receivables through a factoring company allows you to do just that.
How? Consider how many of your clients have an established relationship with your company. At some point, they all came to you as an unknown risk. Factoring turns that unknown into the known, by covering such aspects as:
• Their payment history
• Their current operational capacity
• Their asset portfolio
• Their credit profile
Universal Funding is a factoring partner that will help mitigate the risk of assuming a client whose contract is destined to end up as bad debt, by providing you with the information needed in order to make an informed decision. In many cases, we’ll bring in information from direct dealings with that client in the past. We will put the time and effort into researching your customers’ history with the credit bureaus and researching their background. We assume the risk, right along with you, so why not let us do some of the hard work?
No company should have to look back at a failed contract and wonder what might have been. Knowing a customer’s full financial capacities and tendencies going into a deal, can help to greatly minimize your risk of being left with bad debt.
At Universal Funding we have all of the tools that you need to help discover these things. Our experience in due diligence will help you to identify those potential clients that are sure to fulfill their financial obligations to you, and those who will not.
To see how Universal Funding can assist your company, call 1-800-405-6035 or visit universalfunding.com today.
While your monthly fixed costs are fairly predictable, your revenue, on the other hand, is often not as easy to predict. So, when customer payments are slow, your cash levels can quickly become depleted, leaving you with a serious cash-flow problem. And let’s face it; some of your operating expenses like utilities, lease payments, and equipment rentals are absolutely critical to your company’s survival.
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 cash-flow you need before your operating expenses are due.
• If you’re considering a business loan from a bank; it will most likely not arrive in time to cover your current expenses, as the approval process for banks often takes weeks if not months.
• Finding a solution to this dilemma can affect all areas of your business by delaying projects, repairs or supply purchases or disrupting payroll.
When your business’s cash-on-hand isn’t sufficient to cover these critical operating costs, you might be tempted to use credit cards or other forms of short-term debt. We have a better solution; …your invoices.
By selling some or all of your open invoices to a factoring company like Universal Funding, you can often and regularly generate more than enough cash to cover your critical operating expenses. Additionally, invoice factoring is fast; like in a matter of a few short days.
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 at universalfunding.com or call 1-800-405-6035 for a no-cost consultation today.
No matter how long your business has been around, there inevitably comes a time when you are having difficulty seeing any growth. Similar to exercising your body, sometimes you need to change up what you are doing in order to make it over a plateau. At Universal Funding, we know how frustrating it can be for business growth to plateau. Your expenses continue to pile up, but you aren’t seeing any growth. This is when using an invoice factoring company can be particularly useful.
Even with the most careful planning, there are lulls in business. You may be actively seeking out new clients, but they just aren’t coming in. The important thing is to stay calm and stay dedicated to your business. These plateaus and lulls are often temporary, especially if you are actively using marketing tools and techniques to reach out to new clients.
Although your business may see a lull, your bills do not. You still need to pay your employees, vendors and utilities. As long as your customers are paying their bills on time, you shouldn’t have too many problems. But what happens when they don’t?
An invoice factoring company like Universal Funding can purchase your unpaid customer invoices. This gives you the cash you need to see you through your plateau or lull. We take care of collecting the money from your clients, while you get the cash you need immediately to help your business continue growing. There’s no use waiting for customers to pay when you need cash now and are sitting on a pile of invoices.
Universal Funding has decades of experience providing invoice factoring for companies who want to push through a growth plateau. Call 1-800-405-6035 or visit universalfunding.com to get fast financing and move beyond the plateau.
The first quarter is in the books and now the second quarter for 2015 is almost over. If your company has struggled with cash flow for the first half of the year it’s not too late to fix the financial issues that your company has experienced. Like many companies wanting to grow, cash flow can hinder ramping up production and meeting newer and bigger orders.
One of the most popular and effective ways to get the cash flow in order to grow is by selling your invoices. Here is a sampling of companies all across the United States who fixed their cash flow during the fist half of 2015 by using invoice factoring with Universal Funding:
• In January a crate-and-cargo firm out of Texas began factoring $250,000 in invoices per month.
• In February a property recovery agency in Arizona began factoring $150,000 in invoices each month.
• In March a California based IT and cloud service provider started factoring $600,000 per month.
• In March a nutritional supplement company out of South Carolina needed to increase production and did so by factoring $300,000 per month.
• In April a New York staffing agency that specializes in temporary staffing for the hotel industry was able to meet payroll obligations by factoring $300,000 of their receivables each month.
• Another new client in April includes a trucking company based in Minnesota that no longer has a strain on cash flow when it comes time to fuel up their trucks by financing invoices in the amount of $300,000 per month.
• In June a California manufacturer started factoring $100,000 per month.
It is very likely that these companies are very much like yours, except in one respect; they’re working with Universal Funding to factor some of their invoices.
Let us help you to make the second half of 2015 one with no cash flow concerns. Call Universal Funding at 1 (800) 405-6035 or visit our website at UniversalFunding.com.
Whether a business is in the startup phase or has already accomplished a variety of growth phases, cash flow is an important issue. When your business needs funding, you need to focus on finding solutions no matter where your company history sits on the development timeline. The search can be more complicated if your company is recovering from a period of financial setbacks or has not established a solid credit standing. Factoring invoice amounts can get your business cash for your open receivables no matter what your company history or credit rating. As long as you have unpaid invoices sitting in your A/R, your company is eligible for accounts receivable funding.
Managing cash flow is one of the most important functions of any business manager. There is no financial opportunity that cannot be undone by insufficient cash flow. Traditionally, one of the more popular forms of dealing with cash flow shortages is a short-term bank loan. The SBA (Small Business Association) was formulated specifically stimulating the creation of new companies and enhancing the growth of existing companies. Unfortunately, modern banking practices have put a serious dent in the approval rate of bank loans. Frustrated company owners approach banks with documented, low-risk opportunities and are turned away. This is when factoring companies can help declined business get the financing they need.
In today’s world, your company’s cash flow says a lot about the future of your business. Many financial analysts consider your cash flow condition as the top indicator of the future of your business. A well-managed cash flow typically signifies that the rest of the business is healthy.
Think of your cash flow as the heart of your business. As long as it is well-managed and taken care of, your business will continue to thrive in every aspect. A mismanaged cash flow, or weak heart, can affect the entire business until your company suffers serious setbacks.
Just throwing money at your cash flow problems is a temporary solution. While heart disease can be treated with medication, it takes an entire change in your lifestyle to truly repair your heart, or cash flow, for the future. Treating your cash flow problems requires a holistic approach that reaches every limb of your business. Continue reading
Your business budget runs a lot like your personal budget. You must keep track of how much cash you have on hand at all times, or you’ll run into unpaid bills and unhappy employees quickly. Cash flow shortages aren’t always the sign of problems, rather, they may be the sign that your business is growing faster than you anticipated.
Listen to the Experts
In order to avoid these problems, experts recommend you follow the ten rules of managing your cash flow. Continue reading
Your business may be aware of the benefits of accounts receivable financing, but has not explored the possibility since you are apprehensive about using your receivables as collateral. Financing your receivables is actually an easy and quick way to raise cash for your company, since you are simply selling your open invoices for a discount to an invoice factoring company. You receive cash in hand before your customer payments are due, and the factoring company waits out the terms for payment from your customers. Factors can work with you even if you have concerns about your company’s ability to provide collateral. The only collateral you need is invoices.
As a business owner, you see large amounts of money come and go on a daily basis. It’s all part of running the business. As your company grows and you take on larger clients, you may run in to cash flow problems that are difficult to manage. While receivable financing is a fast, easy option that gives you access to cash without taking on additional debt, you may also want to pinpoint where your cash flow problems exist.
We’ve determined some of the most common reasons businesses deal with cash shortages during certain time periods, and why others seem to thrive. Business growth can be a positive and a negative, as the costs to ramp up production for services and products don’t quite match the revenue you are bringing in.