Insights

  • Top 10 Rules to Managing Your Cash Flow June 26th, 2015 4:35 pm

    Your business budget runs a lot like your personal budget. You must keep track of how much cash you have on hand at all times, or you’ll run into unpaid bills and unhappy employees quickly. Cash flow shortages aren’t always the sign of problems, rather, they may be the sign that your business is growing faster than you anticipated.

    Listen to the Experts

    In order to avoid these problems, experts recommend you follow the ten rules of managing your cash flow.

    • Avoid running out of cash. Idealistic but important to state.
    • Don’t forget that cash is king. Without cash, you have no business.
    • Keep track of what your cash balance is at all times. Business failures happen to the most intelligent people who fail to keep track of a cash balance accurately.
    • Stay on top of your budget. Always do the day’s work on the day it is done to keep your budgets accurate.
    • If you can’t do the budget work, find someone that can. Remember, it must be done.
    • The bank balance is not the same as the cash balance, and you should always work off the cash balance.
    • Project your cash balance six months down the road and change the management of your business to match your projections.
    • Remember that cash flow problems can often be predicted, and rarely “just happen”.
    • Cash flow projections are a necessity.
    • Getting rid of cash flow problems allows you to focus on your customers and your new products.

    Controlling your cash flow means that you are free to run your business how you want. While you can do your best to predict, there are always unforeseen circumstances and things outside of your control. When these things pop up, options like receivable factoring are the best way to get your cash flow problems under control quickly.

    Your Questions Answered Quickly

    Whether your business is thriving and you can’t keep up, or you are waiting on clients to pay, Universal Funding can help your growing company. Visit our rate form today to learn more about receivable factoring and how it can improve company’s cash flow.

  • Lowering Transition Costs through PO Funding and Factoring June 25th, 2015 9:06 pm

    Despite the rise in recent years of both factoring and purchase order financing solutions, many companies remain confused about exactly what sort of benefit each service provides. Others often think that both are mutually exclusive. The reality is that line of thinking couldn’t be further from the truth. In fact, both factoring and PO funding are meant to work hand-in-hand to help distributors achieve that “Holy Grail” of service benefits: lower transition costs, increased inventory, and higher sales.

    Here’s how:

    • You work with your client to structure a deal for products to be sent from your supplier. Your client’s purchase order covers both your acquisition costs as well as your profit margin.
    • PO funding gets you the funds needed to pay your supplier at a reasonable rate per the time needed in order close the transaction.
    • Once your client has received his or her products, you send out the invoice to your customer and to your factor. The factor then advances a percentage of the total invoice, allowing you to pay your vendors in the supply chain.
    • Your client sends payment made out to you to the factor for processing. The remaining percentage on the invoice, amount minus the factoring fee, is processed back to you.

    Savings Over Time

    On a single transaction, the amount saved through a combination of PO funding and factoring may only be a few dollars compared to the interest you have to pay using only PO funding while waiting for your client to satisfy his or her invoice. However, over time, those individual savings amounts start to accumulate, resulting in tens to hundreds of thousands of dollars in retained revenue. Figure in the added benefits of factoring, such as background checks on new clients and credit protection, and the benefits of combining PO funding and factoring become much clearer. Using these two financing methods together is great for companies experiencing healthy growth in production output.

    The top receiving factoring companies are those that are able to simply and accurately paint a clear picture of every benefit that their services provide. We here at Universal Funding make it our goal to ensure that you can clearly see how incorporating both PO funding and factoring can help to save you money, allowing you to improve your operations in other areas. For more information on our service packages and to receive general rate information, take a moment to fill out our online rate form with some basic information about your company.

  • Take On New Business With Funding from Financing Receivables June 24th, 2015 6:25 pm

    A new client means your business will have a new source of revenue, but you first must find the funding to cover raw materials or employee wages to fulfill your new order for goods or services. The old saying, “It takes money to make money,” definitely applies to this particular situation. Instead of putting off necessary payments or delaying your new client’s order, your business can access funding through accounts receivable financing. Financing receivables gets you the cash you need to fulfill your new order, and the turnaround time for approval and funding is fast enough that you can accept the new client right away.

    Cover Your Upfront Costs

    You may have briefly considered a bank loan to cover the upfront costs taking on a new client, but rejected the idea due to the lengthy approval and funding process associated with lending. You cannot wait weeks or months to purchase the supplies or fund the overtime hours necessary to take on new business.

    Financing your receivables, or factoring, is a quick and simple process. You are selling your open invoices in order to access their worth before payment is due. Factoring requires three basic steps:

    1. You will supply the factoring company with few easily accessible items: a one-page application, your business registration papers, sample invoices and recent accounts receivable and accounts payable reports.
    2. Once your application is submitted, approval can happen within one to two days.
    3. Upon approval, your company can receive the funds within hours.

    The process of factoring your invoices takes a fraction of the time required for a bank loan, and your business does not acquire any debt. You will have the cash needed to cover your upfront costs in time to meet your client’s expectations.

    Factoring for Success

    Satisfying your new client with quality goods and services is important. Making sure you have the capital needed to cover your costs in a timely manner is also a large part of creating a loyal client and bringing additional revenue to your business. Factoring can help you succeed by getting you funding quickly and easily while being able to offer terms to your new clients.

    Universal Funding can help you finance your receivables and successfully grow your business. Complete our simple rate form to get started.

  • What Benefits do Factor Companies Offer to Businesses? June 23rd, 2015 4:40 pm

    In today’s world, the state of your cash flow says a lot about the future of your business. Analysts typically look at cash flow problems as a sign that there is a larger problem within the business. Cash flow issues are normal for growing businesses, and it’s all about how you handle those problems that makes the difference between you and your competition.

    Factor companies like Universal Funding offer a unique solution to your cash flow issues. With invoice factoring, you sell your invoices in order to access cash that is rightfully yours without taking out a loan.

    How it Works

    Invoice factoring is a simple process when done right. As you take on larger clients, they may need longer payment terms, some going out as long as 90 days. As you are waiting for them to pay, you still have to pay your bills and your employees. How do you do this without access to cash? That’s where invoice factoring comes in.

    Factoring companies will buy your invoices and advance you the cash, while holding the invoice until your client pays in full. Once the obligations are met, the rest of the invoice is forwarded to you with just a small fee deducted for the service. This allows you to focus on growing your business with access to cash and no smothering debt.

    What Are the Benefits?

    Invoice factoring gives you quick access to cash that you’ve earned. As your business grows and you build up the cash to handle larger accounts, factoring gives you the space you need to pay your bills on time.

    With factoring, you aren’t required to go through the lengthy process of applying for a loan that comes with traditional banks and lending institutions. Simply put, you don’t have the time to wait as you purchase inventory and expand your business to meet demands. You need access to cash fast, and banks can’t give that to you. Factoring companies can.

    See for Yourself

    To learn more about factoring and how it can help your business through the growing pains of cash flow problems, submit our rate form today.

  • Funding Solutions for Businesses With Tax Issues June 22nd, 2015 4:32 pm

    Dealing with the IRS or a local tax agency can take up valuable time and resources at your business. Your business still needs to grow while you reconcile your issues. Your revenue and employees depend on the continued health of your company. However, if you need capital to cover operating costs or the upfront costs of a new client, many lending institutions will not work with you while you experience tax problems. While you reconcile your tax issues, you should consider invoice factoring as a source of funding for your business.

    Invoice Factoring as a Funding Solution

    Factoring, also known as accounts receivable financing, is the process of selling your company’s open receivables for a discount. Businesses factor their invoices for a variety of reasons:

    • The application and approval process is much faster than the bank loan process. Instead of waiting for weeks or possibly months for bank approval, your business can access capital as fast as two or three days.
    • Because your business is selling assets to the factoring company, your company will not incur debt. The factoring company collects payment from the customer associated with the invoice you sold.
    • Factoring companies consider many variables outside of your company’s current credit or cash flow, focusing on the credit standing of your customer and their payment history. This allows businesses that do not qualify for traditional bank loans to qualify for accounts receivable financing.

    Since the approval process for factoring is different than for a business loan, your company can find funding through receivables financing even with a tax lien. Top factoring companies make approval decisions based on the lien amount in relation to your monthly volume and the details of the workout agreement with the IRS or local agency.

    Access Funds From a Top Factoring Business

    Universal Funding works with businesses experiencing tax problems and liens. We can help your business access funding through the sale of your open receivables. Contact us today to learn more about factoring by completing our simple rate form.

  • Be Ready for Opportunities With the Help of Factoring June 19th, 2015 4:42 pm

    Invoice factoring companies offer your business a way to access cash for your open invoices before your customer payments are due. This can make a significant difference in your cash flow levels if your invoices are scheduled for 60 or 90 days. Factoring your open invoices allows you to accept several business opportunities you might have to delay without a way to access capital quickly.

    B

    Win a Bidding War

    Your company needs to offer excellent services or products in order to stay ahead of your competition. Winning a bidding war against a competitor for a new business opportunity is only possible if you are able to promise quick delivery and a deal on pricing or an introductory price. Continue reading →

  • Factoring Invoices for Companies Concerned About Using Receivables as Collateral June 18th, 2015 6:31 pm

    Your business may be aware of the benefits of accounts receivable financing, but has not explored the possibility since you are apprehensive about using your receivables as collateral. Financing your receivables is actually an easy and quick way to raise cash for your company, since you are simply selling your open invoices for a discount to an invoice factoring company. You receive cash in hand before your customer payments are due, and the factoring company waits out the terms for payment from your customers. Factors can work with you even if you have concerns about your company’s ability to provide collateral. The only collateral you need is invoices.

    invoices-receivables Continue reading →

  • Funding for Your Business Without Debt June 17th, 2015 5:49 pm

    There are many reasons your company may need to find a source of immediate funding, but there are not many options for you to explore. Your choices are further narrowed if you do not want your business to incur debt. Many traditional funding avenues require your company to take on debt, affecting your credit as well as your budget for repayments. However, invoice factoring is an excellent funding alternative to the traditional loan structure that gets you operating money swiftly and does not require your business to take on debt.

    debt factoring Continue reading →

  • Raise Cash Even if Your Business Does Not Qualify for a Bank Loan June 16th, 2015 8:22 pm

    When your business is experiencing low cash flow, waiting 30, 60 or 90 days for customer payments to arrive can be detrimental to your business. Some companies decide to risk their relationships with vendors or delay procurement of new materials since they do not have bankable characteristics that would qualify them for a business loan. Factoring receivables allows businesses to access cash for open invoices before payment is due, and your business can qualify for funding through factoring even if you are not qualified for a loan.

    factoring_v_loans

    Funding for All Types of Companies

    Factoring is a quick and simple way to access capital for companies of all sizes and in all stages. Even businesses in special situations can work with a factoring company to raise cash: Continue reading →

  • Using Invoice Factoring to Fund Your Expansion Plans June 15th, 2015 5:17 pm

    Accounts receivable financing can help your business access value from your open invoices before they are due. Instead of waiting 30, 60 or 90 days for customer payments, a factoring company can offer you an advance based on the company’s method to determine factoring and advance rates. Your business can use these upfront payments as investments to expand your business and jump start growth.

    expansion Continue reading →

  • The Benefits of Working with an Accounts Receivable Factor June 12th, 2015 5:17 pm

    If you are a business owner in need of boosting cash flow, you should consider the benefits of accounts receivable factoring. You likely are aware of the effort involved in acquiring resources to meet cash flow shortages. There may come a time when traditional business financing, including lines of credit and loans from a bank, are limited or not within reach. At times like that you can turn to accounts receiving factoring.

    benefits-cash

    Factor Financing

    Factoring is one of the oldest forms of commercial finance. It is the process of selling outstanding invoices at a discount to a specialized factor company that will assume the risk on the receivables in return for a quick influx of cash into your business. Continue reading →

  • Secure New Streams of Revenue Through Receivables Financing June 11th, 2015 5:29 pm

    Accounts receivable financing is an excellent way to cover your immediate costs without waiting for customer payments to arrive or for a bank to approve a business loan for your company. While you may think of factoring your company’s receivables as a tool for urgent expenses, financing receivables also can help you meet future goals for your business. Your company can increase your future revenue with the help of receivables financing.

    revenue

    How Selling Invoices Can Expand Future Revenue

    A large part of expanding your business is expanding your client base and output. Taking on new work from an existing customer and adding new customers to your list of clients are great ways to increase revenue, but the process often involves upfront costs. Financing your receivables can provide you with the funding to cover your upfront costs and secure new streams of revenue. Continue reading →

  • Identifying Your Cash Flow Problems June 10th, 2015 4:01 pm

    As a business owner, you see large amounts of money come and go on a daily basis. It’s all part of running the business. As your company grows and you take on larger clients, you may run in to cash flow problems that are difficult to manage. While receivable financing is a fast, easy option that gives you access to cash without taking on additional debt, you may also want to pinpoint where your cash flow problems exist.

    cash flow scrabble

     

    We’ve determined some of the most common reasons businesses deal with cash shortages during certain time periods, and why others seem to thrive. Business growth can be a positive and a negative, as the costs to ramp up production for services and products don’t quite match the revenue you are bringing in.

    Continue reading →

  • Three Things to Learn Before Choosing a Factoring Company June 09th, 2015 10:16 pm

    Accounts receivable factoring companies are able to qualify you for funding even if you have been turned down for a bank loan, and they offer faster turnaround times than other financial institutions. While most factoring businesses can provide fast funding, choosing the right firm to factor your invoices is still an important decision that you need to carefully consider. Here are three things to learn about a factoring company before signing a contract.

    list-of-three Continue reading →

  • Factoring Invoices for Companies Concerned About Using Receivables as Collateral June 08th, 2015 5:52 pm

    Your business may be aware of the benefits of accounts receivable financing, but has not explored the possibility since you are concerned about using your receivables as collateral. Financing your receivables is actually an easy and quick way to raise cash for your company, since you are simply selling your open invoices for a discount to an invoice factoring company. You receive cash in hand before your customer payments are due, and the factoring company waits out the terms for payment from your customers. Factoring firms can work with you even if you have concerns about your company’s ability to provide collateral. The only collateral you need is invoices.

    ar management Continue reading →