The Merchant Cash Advance Versus Invoice Factoring

A potential client of ours recently said he was trying to decide between using a merchant cash advance loan or invoice financing to fund his business.

Both funding sources have benefits, but there are some key differences to keep in mind if you find yourself facing a similar decision.

First of all, the cash advance is essentially a short term loan. Some companies classify it as a “sale of future credit card sales,” which shields them from interest rate limits, which can range from 10 to 100 percent.  The bottom line, though, is it creates a debt that must be repaid, typically through a percentage of future credit card sales.

The benefits are immediate cash and an easy application process.

Invoice factoring is not a loan and creates no new debt. There is no money to pay back, ever. After an easy application process, funds are deposited immediately based on the value of your accounts receivable. Perhaps best of all, the financing line increases as your sales grow.

When Universal Funding is your provider of invoice factoring, rates can start as low as 1 percent. And with the added benefits of working with Universal, you have access to free business advice, tax help, credit checks on new customers and the option to obtain A/R insurance.

Choosing the right form of business financing is a huge part of any company’s success. If you’d like to discuss how invoice factoring can benefit you, as the gentleman mentioned in the opening paragraph did, please contact us today!

He’s the latest to benefit from our funding services, maybe you can be next!

Twitter


Press Releases

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

Universal Funding Corporation Launches Website Redesign

Factoring company Universal Funding recently upgraded their website, making it easier for site visitors to get the information they need whether they are a current client, a broker, a client’s customer, or inquiring about setting up factoring services.  ... read more

Blog

2016 U.S. Economic Outlook

The U.S. economic outlook for 2016 is encouraging.  Overall, we’re looking at: A healthy Gross Domestic Product in the 2-3% range, A low unemployment rate at between 4-6%, Inflation will remain under control, and Interest rates can be expected to slowly grow through... 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

Universal Funding Corporation
PO Box 13115
Spokane, WA 99213

800.405.6035

Copyright © 2009-2015 Universal Funding Corporation and its related entities. All rights reserved.