Accounts Receivable Finance – Alternative Ways to Fund a Business

For those looking for an alternative way to fund business operations or expand your business, accounts receivable finance provides a way for companies to turn their open invoices into immediate cash. The process is fast and easy and doesn’t require you to have excellent personal credit or have a specified time in business. Accounts receivable financing is not a loan. It is a sales transaction that allows you to sell your invoices for a discounted face value in exchange for near instant funding. There are no restrictions on the use of the money and no repayment requirement. This means you can use the funds for whatever you want: purchasing new equipment, fulfilling large orders, or just covering day to day expenses and not have to worry about adding new obligations to your monthly operating budget.

alternative finance

 

Accounts receivable finance, also known as accounts receivable factoring, involves two parties: your company and an accounts receivable factor, or factor for short. The factor will review your open invoices, both current and past due, and determine a rate based on the quality of your customers. The industry you are in, the payment schedules, and your customers’ credit strength all determine how low of a rate will be offered for your portfolio. Universal Funding differs from many other factors who use a variable rate for each invoice or customer; Universal will offer the same low rate for every one of your invoice, regardless of the amount or who the customer is for that invoice. After careful review, if you choose to accept the offer, you will receive your cash within days, sometimes in as little as 24 hours.

If you’re ready to see how receivables financing with Universal Funding will get you the funding you need, fill out a rate form or call 1-800-405-6035.

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