We don’t know of any two companies that are exactly alike. Even similar companies serving the same industry can have vastly different ways of earning money, completely different spending strategies and differing ways of handling accounts receivable.
That’s the beauty of the business world, but also the bane of many commercial financial companies. There are no one-size-fits all financing strategies that apply to all businesses. Even invoice factoring, a relatively straightforward and simple financing tool, can be tailored to the needs of individual business.
Not all factoring companies do that, though. The ability to build client-specific programs that meet the needs of an individual company is a key advantage to using Universal Funding Corporation as a source of financing.
Here’s a simple fact: companies that don’t factor lack the the same control over their cash flow as companies that do factor. Factoring provides a company with predictable, and guaranteed, payment of invoices. No waiting, no wondering when the cash will arrive in the mail.
In addition, companies that factor are able to take advantage of early-payer discounts and use the money to cover expenses and general overhead, all at a constant rate that won’t ever come with a surprise change. When sales volumes and expenses are easily projected, a strategy for growth can become imminently clear.
We’re operating during a time in history where businesses are under constant pressure to cut costs, trim operational controls and maintain profitability. If companies are forced to spend extra time figuring out credit and cash flow concerns, less time is available for planning to increase sales and implement marketing efforts.
Factoring gives business owners that time, in addition to a debt-free constant cash flow.
An under-capitalized business is simply never going to grow. In fact, it can even lead an otherwise-strong company to go under. That’s a shame.
The programs offered by Universal Funding are meant to maximize profits and take the stress out of cash flow management. Most of all, Universal Funding’s goal is to foster success in its clients.
When small business succeeds, we all do.
We Wait, So You Don’t Have To
They say cash is king.
When ample amounts of it are flowing through your business, they are right. But when there’s a lack of cash, the only thing king-sized about it is the trouble it creates.
For many businesses, keeping cash as king is as easy as factoring.
Factoring, in its simplest terms, is just another word for getting paid immediately. It enables businesses to avoid waiting for payment on invoices from customers who take upwards of 30-60 days to pay.
Instead a factor buys those invoices, effectively paying the business right away. The invoices are then forwarded to your customers, who are given the luxury of waiting to pay. Many companies rely on factoring because they simply can’t afford for their invoices to go unpaid for two months.
Universal Funding does the waiting for you.
Offering payment terms can be challenging when working with other businesses. Waiting 60 days to get paid can seem like a lifetime when you have bills that are due in 15. The situation can get even harder when a potential customer seems promising but then asks for lengthy payment terms. Is the opportunity to sign the customer and risk a cash flow problem better than losing out on the customer’s business altogether?
Working with a factor can eliminate that worry and allow you to take on the customer while knowing you’ll be paid immediately.
Universal understand the needs of businesses and the tools that help pave the way to success.
A strong cash flow is vital and factoring provides the capacity to grow when other forms of financing may not be available. Factoring can also provide access to credit and collection services at a fraction of the price of doing it yourself.
Factoring allows your business to be more competitive and make more money.
In short, factoring makes cash king again.
How to Overcome Two Big Business Obstacles
Companies in all industries routinely face two obstacles:
- Unexpected expenses
- Late payments from clients
Companies in the oil, gas and energy industries may be even more prone to these issues than other businesses. Regardless of your industry, though, both of these problems can put a serious kink in how much cash your company has to work with each month.
How can a company keep itself in the black while waiting on customer payments or writing checks for new equipment or spending money to constantly fix stuff that breaks? A factoring plan can be a real lifesaver in situations like these. Invoice factoring allows business owners to get cash much quicker than they would through their normal accounts receivable operations.
Like, in a day or two, rather than a month or two.
Instant cash is just one of many benefits factoring can bring to your company. For one thing, factoring is not a loan so you won’t have to open a new line of credit or take on any debt repayment schedules. Another benefit is free access to business finance professionals who can help solve tax issues and resolve collection problems.
Of course, we can’t leave out the biggest benefit of all: more profit.
If you have customers in the oil and gas industry, you know all too well that they can wait anywhere between one and three months to pay! With factoring, though, you can receive the money you are owed within a few business days; money you are then free to use however you see fit for your business.
Universal Funding offers incredible rates combined with superior customer service, which means you could be on the path to faster cash, and more profits, in just a few days.
What Makes a Good Factoring Company?
Choosing to factor your invoices is a smart decision.
Deciding which factoring company to use can prove daunting, however. Hundreds of factoring companies exist in the United States alone, so how can you know which is a good match for you?
While factoring is a business arrangement, you’re likely to have a fair amount of personal contact with the people at the company you choose; more so than with a typical bank relationship. The ability to speak with your account manager needs to be as simple as picking up the phone and dialing. No complicated phone menus, just a real person answering your call.
Also, the best factoring company for you must:
- Specialize in the industry you do business in, ensuring a proper base of knowledge and experience with the unique issues you face.
- Demonstrate a track record of stability, responsibility, integrity and strength.
- Offer access to a credit department staffed with experts in the industry
- Employ a professional collections staff who treats debtors (your customers) with the same level of respect that you do.
- Use current technologies to offer you 24/7 access to up-to-the-minute status reports on your account.
- Offer no-charge business advice and tax assistance.
- Make quick decisions and provide your money fast.
Of course, low rates and easy-to-understand terms are important too, but look for a factoring company that is interested in building a relationship with you and your business. Find a company that has similar goals and ideals as yours and you’ll enjoy a smooth path to financial freedom and healthy profits.
Would Your Business Benefit from an Unlimited Line of Capital?
As any business owner knows, having enough cash available to run and grow a company is a constant challenge.
Large companies and corporations typically have an easier time securing the business funding they need on a regular basis and can access bank credit whenever it is needed. Small and mid-size companies often don’t have the luxury of easy money.
Nothing is more frustrating for an entrepreneur than a bank’s door slamming in his or her face after asking for financial help with a small business. But it happens all the time. Considering that small businesses drive the U.S. economy by providing jobs for over half of the nation’s private workforce, it’s a shame that securing financing can be so difficult.
Imagine the impact small business could have if it were properly capitalized.
That’s where Universal Funding comes in.
We have made it our most important goal to help owners of small and mid-sized businesses, both new and established, achieve their dreams of getting quick access to financing programs that can help them grow.
While our financing services aren’t for everyone, the chances are good that we can provide you with access to a debt-free, unlimited line of capital for your business. As long as your customers are creditworthy businesses, we don’t even require you to have perfect credit or even a long track-record of being in business. In fact, many of our clients have been start-ups that would never have seen the light of day if not for our financing! We’re pretty proud of that.
We’re excited to see if we can provide financing to your company and talk about whether or not our services can be beneficial to you. If you believe a debt-free unlimited line of capital that grows along with you could be of benefit, we invite you to contact us or fill out and submit the Rate Inquiry Form on this page.