Simple and Easy Application Process
Our application process is designed to be simple and hassle-free, requiring just a few minutes of your time to complete. Once you submit your application to Universal Funding, we will promptly provide you with an initial proposal that includes your factoring and advance rates. Rest assured, we understand the importance of privacy, and we are fully committed to maintaining the confidentiality of all information shared with Universal Funding. It’s important to note that signing the application and proposal does not obligate your business to utilize Universal Funding’s services.
Efficient Underwriting Process
Once you accept the proposed factoring rates, your application will undergo a thorough evaluation by our underwriting department. This team will carefully assess the creditworthiness and overall viability of your customers. During this process, your designated underwriter may contact you to seek clarification or request additional information regarding matters such as liens, outstanding loans, judgments, pending lawsuits, bankruptcies, or financial losses. Any insights you provide will greatly assist the Universal Funding board in reaching a final funding decision. Typically, the underwriting and approval process can be completed within one to two business days.
How the Invoice Factoring Process Works
Invoice factoring presents a straightforward method for establishing and maintaining healthy cash flow. Here’s a breakdown of what occurs after you send out an invoice:
- You receive and fulfill an order.
- Once you’ve delivered your goods or services, you issue an invoice to your customers. Simultaneously, you forward a copy of the invoice to the factoring company.
- After a quick verification process, funds are promptly transferred directly into your bank account.
- Typically, you’ll receive an advance payment ranging from 80% to 95% of the total invoice amount. The remaining percentage is held in a reserve account.
- The factoring company then collects payment from your customers within the agreed-upon terms (e.g., net 30, 60 days, etc.).
- As your customers make payments, your account is credited accordingly, with the remaining funds deposited into your account minus a small factoring fee. This fee, known as the factoring rate, generally falls within the range of 0.55% to 2% monthly.
- You can conveniently monitor all your transactions through our secure online portal, accessible 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. We’re here to help!