Accounts receivable financing is an easy to access, flexible alternative financing option for companies looking to expand their operations or cover day to day expenses.
Accounts receivable financing also shifts the potential risk of defaulted customer invoices to a third party company. To qualify for A/R financing, a company simply needs current, unpaid customer invoices to sell. Factoring companies will purchase these invoices, regardless of whether they are current or aged, and provide a substantial advance that can equal up to 90% of the value of the invoices. The funds are then advanced to the company by the factoring company. This arrangement provides much needed cash to the company looking to fund projects or cover a financial shortfall, without adding to future liabilities. Since accounts receivable financing is not like traditional financing or a commercial loan product, there is no need for a company to repay the advance, which preserves future cash flows as well as providing near instant access to cash to deal with current business needs.
For more information on Universal Funding and the financial assistance that we can provide your business, give us a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.