Application & Underwriting Process for Invoice Factoring

Simple and Easy Application Process

Our application process is simple and easy taking only a few minutes to complete. Once Universal Funding receives your application, we will then provide you with an initial proposal, which includes your factoring and advance rates. We understand how important your privacy is and are committed to keeping all information provided to Universal Funding confidential. In addition, signing the application and the proposal do not obligate your business to Universal Funding’s services.

Underwriting Process

Once you agree to the proposed factoring rates, your application is processed by our underwriting department, which will review and assess your customers’ credit strength and overall viability. After the initial analysis is complete, your underwriter may reach out to you for clarification or additional information relating to liens, outstanding loans, judgments, pending lawsuits, bankruptcies, or financial losses. Any points of clarification that you can provide will help the Universal Funding board in making their final funding decision. Often, the underwriting and approval process can be completed in one to two business days.

How Does the Invoice Factoring Process Work?

Invoice factoring is a great way to build and maintain cash flow. Here’s what happens after an invoice leaves your hands.

  • It begins when you receive and fulfill an order.
  • As soon as your services or goods are delivered, you invoice your customers. You also send the factoring company a copy of the invoice.
  • Once the invoice is quickly verified, funds are wired directly into your bank account.
  • You’ll usually receive an advance anywhere from 80% to 95% of the invoice amount. The remaining percentage is placed into a reserve account.
  • The factor then collects payment from your customer within the agreed upon terms (net 30, 60 or days, etc.).
  • Your account is credited for the payments received by your customers and the remaining funds deposited in your account minus a small factoring fee. This is the factoring rate which ranges from 0.55% to 2% monthly.
  • You can see all your transactions through our secure online portal at any time.


If you would like to learn more about our the invoice factoring application process, please call us at 800.605.4035 to speak with a factoring specialist.