At What Point Is Turning to Accounts Receivable Financing Appropriate?

When your business has been successful for years on end, there are certain funding options that might slip under your radar. When you find your business in desperate need of quick cash, however, it’s important to know what options are available to you. Accounts receivable financing from Universal Funding is a great option for businesses that gross a minimum of one million dollars annually and are in need of some monetary assistance.

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When Your Business Needs Cash

Accounts receivable financing involves selling your invoices to a factoring company for immediate cash. This financing method is usually much quicker than applying for a loan and waiting for approval. It is essentially the sale of a good. When your business needs cash, we can purchase your invoice from you and provide you with the necessary cash flow. This gets you the money you need for whatever you see fit to use it for, and we wait to collect on the invoice from your client within the terms you have agreed to with them. Once your client pays the invoice in full, the process ends with us releasing the remaining balance back to you.

With or Without Active Loans

You might think that financing your accounts receivable isn’t an option when your business is already trying to pay back loans from another institution. Ultimately, this matters very little. Financing accounts receivable is quite different than a loan. Universal Funding basically purchases invoices off of your business; there’s no need to repay the money back. What’s more, you choose which invoices are available for us to purchase. Even if you have active loans you are paying back, you may still qualify for financing through accounts receivable. Thus, selling your invoices is a great option when you are unable to qualify for more loans.

Call Us to Learn More

Invoice factoring is a great, quick-cash option that many companies overlook. The process usually takes very little time, and it doesn’t require repayment the way that a business loan does. Contact Universal Funding today to learn more about our accounts receivable financing services. You can also fill out our online rate form to gain access to some valuable information.