Q: My credit isn’t very good, can you still fund me?
A: Yes. Universal Funding, an receivables financing company, can still fund you because we look at more than just your personal credit or the credit profile of your business. Factoring or accounts receivable funding is not a loan. It’s a sales transaction. We make a cash offer for your invoices, no matter what your credit rating is. The rate of advance, as well as the factoring rate depends on a number of variables like who your customers are, what your billing cycles look like, and average invoice amount. A quick conversation with one of our Business Development Associates will help us understand your company and determine the lowest cost solution for your funding needs.
When determining the amount we are willing to advance you for an invoice portfolio, we do consider the creditworthiness of your customer. This helps us determine the risk of advancing on an invoices with a particular customer. Those who have a better credit profile are more likely to pay the invoice in full at the time it becomes due, making these invoices low risk and typically low cost. This doesn’t mean that we won’t purchase invoices that are held by customers with a poor credit profile. It just means that we evaluate the risk for each of our clients based on their customer portfolio.
If you are ready for a funding source that takes more than just personal credit into consideration request a free consultation or call 1-800-405-6035 today.