What to Watch Out For in the Evolution of Invoice Factoring

Invoice factoring has been around, in some form or another, for centuries. It’s one of most tried and true forms of business financing out there.

Like all things in this day and age, technology has impacted the evolution of factoring. Businesses have begun to sprout up offering online auctions for a company’s receivables, where a business owner can post an invoice and have random investors buy it for a discount.

In theory that means an easy way to generate quick cash flow on an as-needed basis. Plenty of companies have tried these online factoring services, but some problems are beginning to surface. Problems that don’t happen when using a factor like Universal Funding.

When using an online auction-type factor, you never know who is buying your invoice. In fact, one invoice could be split between more than one investor. That may not seem like much a problem… until you consider that each invoice will be verified by the investor who buys it. That means your customers will be the ones bombarded with calls attempting to make sure the invoice is genuine. Do you want your customers dealing with the inconvenience and frustrations of that? That’s especially true if you do repeat business with the same customer over a long period of time. That customer is going to get awfully sick of fielding phone calls from different people every time you invoice them!

By factoring with Universal Funding, you still get a great rate and you get your cash just as fast. Plus, you always work with the same person and you know who is buying your invoices and can rest assured you and your customers will be treated with complete respect.

Unlike the auction sites, we are not a one-shot wonder factor. We build relationships with our clients and debtors and help businesses grow. We believe in and have adapted the latest technologies into our business, but one thing we’ll never stop doing is partnering with our clients and investing ourselves personally into their growth and success.

As our industry evolves, you can be sure our commitment to you and your business never changes.


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


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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