Factoring Invoices 101

Many business owners are familiar with the term “factoring invoices,” the process of selling off your unpaid receivables to a third party company in exchange for immediate payment. However, there are numerous benefits that may not be immediately recognizable when considering whether to partner with a receivables factoring company.

1. It’s Not a Bank Loan

When company owners seek out capital, regardless of reason, the first and often only place they consider contacting is their local bank. Bank loans serve their purpose, but the process can be long, arduous, and often unsuccessful. As the economy continues to limp toward recovery, many banks are still very hesitant to approve business loans—even if you have been in business for decades, have a great credit rating, and have all of your documents in order. Loans can take up to 25 hours per application and you may wait for more than a month to get the funding you need. In addition, should you be approved, most banks have stipulations on what you can do with the proceeds of your loan.

2. Use the Proceeds How You See Fit

Factoring your invoices removes all of the hassle that can often accompany applying for a bank loan, as it is not technically a loan. You are simply selling your unpaid receivables to us in exchange for a predetermined, competitive fee. The application process is extremely fast and easy to complete, and unlike a bank, most receivables factoring companies do not dictate how and where to spend your funds. Here are just a few of the many examples of how you can use your capital:

  • Expand your operations
  • Transfer to a more appropriate workplace
  • Hire more staff
  • Upgrade your equipment or tools

 

3. Get Paid Extremely Quickly

Tired of waiting 30 days, 60, 90, or even longer than that for your clients to get around to paying your invoices? Once you partner with a receivables factoring company, you can get paid in hours or days instead. To learn more about how Universal Funding Corporation can help you achieve your goals, call us at (800) 405-6035, or fill out our handy online form.

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Financially Fit Businesses in 60 Days or Less

Spokane, WA (May 16, 2016) – Companies get financially fit by using the services of an invoice factoring company. Universal Funding Corporation provided working capital funding for five new clients in April. Over the course of the next year, these new clients... read more

Growing Companies Get Financing from Factoring Company

Universal Funding Corporation releases early numbers for new clients served in the first quarter of 2016. Highlights include: $12 million factoring facility for a distributor in New Jersey $2.4 million factoring facility for a car service in Arizona $1.2 million... read more

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Let Your Factoring Company Analyze Risk

In order to remain competitive in your industry, you’ve probably considered extending credit terms to your customers. Maybe you already offer payment terms to customers in good standing. When your customers pay on time, all is good, but what happens if they don’t pay... read more

Financing that Grows With Your Business

This success story comes from a green minded company that specializes in e-waste recycling where they clear data on electronic devices for other businesses. The client started using Universal Funding’s invoice factoring services in 2015. Their initial factoring line... read more

Universal Funding Corporation
PO Box 13115
Spokane, WA 99213

800.405.6035

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