Many small and medium sized businesses may not be familiar with the term ‘factoring’. Big business has been using this little known financial instrument for decades, but only recently have some financial institutions begun to offer Invoice Factoring to small and medium businesses.

Basically, a financial entity like Universal Funding Corporation funds your accounts receivable for a pre-determined rate. This is not a loan, and no debt is entered on your company’s balance sheet. The credit of your customers is the primary concern of the factoring company.


Factoring solutions, including receivables factoring is a fairly new phenomena in small and medium sized businesses. They are just not used to the idea of AR funding. This type of system allows your cash flow to be much more fluid; instead of waiting 30 – 90 days for invoices to be paid, with accounts receivable factoring you get your money up front.

The rates are determined through a diverse set of variables; this will depend on volume of sales, the invoiced customer’s credit history and payment schedule with you. There are other factors involved with account factoring as well, but term rates are generally low. Factoring also allows companies to take advantage of early-pay discounts often offsetting the cost of factoring in full while still allowing for a company to increase sales and grow.

For custom factoring solutions, factoring help and understanding how this tool can work to grow your company through accounts receivable funding, please go to our get rate page.


Press Releases

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


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

Is Your Company Unable to Offer 30-Day Payment Terms?

One key tool that business owners use to close deals and increase sales is to offer payment terms to their customers. Nowadays this is common practice and often expected in order to do business with some companies. Not only do buyers for big companies expect terms of... read more

Universal Funding Corporation
PO Box 13115
Spokane, WA 99213


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