Factoring Receivables Companies

Receivable factoring companies offer businesses an alternative to traditional commercial financing. Receivable factoring companies purchase open invoices and provide a large advance, giving these businesses the opportunity to secure the funding they need to expand their businesses, purchase additional raw materials, simply cover day to day operating expenses. Because this is not a loan, there is no repayment obligation nor is there any debt to record in the financial statements. Here’s how it works: Companies in need of funds contact accounts receivable factoring companies and offer open invoices in their A/R portfolio for sale. The receivable factoring company makes an offer for the advance rate and the factoring rate, if accepted, the transaction closes with the invoices being transferred to the receivable factoring company and the funds being transferred to the business. The process can take as little as 48 hours to complete, much faster than traditional bank loans and other financing products.

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Factoring of Receivables

Factoring of receivables refers to the process of selling your open invoices for cash. Accounts receivable financing companies, otherwise known as factors, evaluate your invoices and assign them a value based on the creditworthiness of your customers, not your business. They will make you an offer and, if you accept, will close the transaction and forward you the money in days rather than the weeks it takes to undergo a loan approval process.

Click here to read more about the benefits of factoring companies.

To find out how you can gain access to this fast cash flow solution call us at 1-800-405-6035 or click here to submit a rate form and one of our Business Development professionals will follow-up with you.

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Press Releases

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

Universal Funding Corporation Grew by 14.5% in 2015

Universal Funding Corporation served a total of 130 clients in 2015 by funding over 63,000 invoices that totaled over $164,000,000. This is an increase of 14.5% for total amount financed, as compared to 2014. Highlights include:$3.8 million to a California-based... read more

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Busting 5 Of The Biggest Invoice Factoring Myths

Although invoice factoring has been around for centuries and is being used by savvy businesses, there are still quite a few myths that make this business financing method misunderstood.  Here are the top 5 myths that we hear about at Universal Funding. Myth One:... read more

Spring Cleaning Your Business in 4 Easy Steps

As spring approaches and Q1 closes out, now is the perfect time to put some thought to sprucing up your 2016 business strategy by giving it a good spring-cleaning. Just like deep-cleaning your home once a year in the spring, giving your business strategy the once over... read more

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PO Box 13115
Spokane, WA 99213

800.405.6035

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