When a business needs cash in order to make a sale, they have a few options. First, they can go to the bank and apply for a business loan. Second, they can turn to their principle owners or investors to offer additional cash to cover the deficit. Or third, they can sell their open invoices to an invoice factoring company in order to raise the cash. Applying for a loan can be tough on a business, especially newer ones that either don't have the requisite number of years in business or the established business credit to be able to qualify for a loan. And getting a capital infusion from the principle owners or investors can be a time consuming venture that may not pan out and requires offering more of their company ownership. When a company decides to factor its invoices, it first looks for factoring companies that serve their industry. They review their existing invoices to determine which ones they can sell in order to cover the cash shortfall they have. This is the easiest and fastest way to inject cash into a company.
Smart business owners are always looking for ways to improve their cash flow. Some have realized the effectiveness of working with invoice factoring companies. Factoring companies purchase the accounts receivable (AR) and provides business owners with necessary cash to pay for expenses such as payroll, inventory, office supplies, marketing, advertising and even taxes. While you could go to a bank for financing, when you do, you incur debt. It could also be a more timely process and affect your company‚Äôs credit and your personal credit. When you research invoice factoring companies like ours, you will soon discover the many benefits of factoring receivables including how fast we provide you with cash on a high percentage of the balance due on your AR. You will not have to fill out complicated forms nor will you have to wait an extraordinary amount of time before you get your answer.
Instead of sending statements and reminders to customers who fall behind on their payments, you can spend your time growing your business and planning for the future. Why let cash flow problems bog you down when you have a simple, financial tool at your disposal?
End your search for invoice factoring companies today and contact Universal Funding for the financial assistance you need for your business, give us a call today at 1-800-405-6035 or submit a rate form for one of our Business Development Specialist to follow-up with you.