The concept of accounts receivable financing is simply to use your open invoices to get access to a lump sum of cash. Invoice factoring companies provide the advance on qualified invoices for a low rate and provide near-instant funding, usually in as little as 2 business days. Accounts receivable funding allows you to get access to cash that wouldn’t be available to you for 30, 60, or 90 days, depending on the terms you have set-up with your customers. This will give you the opportunity to take advantage of lucrative business opportunities when they occur rather than waiting for them to happen when you have the cash on hand.
Accounts receivable funding can also help you resolve older, defaulted invoices without resorting to hiring a collections representative to try and collect the invoices from your customers and potentially damaging your relationship with them. You can easily convert past due accounts receivable into useable cash by simply selling them to an invoice factoring company. With accounts receivable funding, you can offload those liabilities quickly while still recovering a portion of the balance. This not only improves your cash flow situation, but helps improve your balance sheet as well, making it the perfect solution for small business funding.
If you are ready for one of the best factoring companies, to turn your invoices into fast cash, give Universal Funding a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.