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.