While acquiring a business loan may be important to maintaining daily operations, such measures have little impact on total revenue. Conversely, working with a factoring company helps increase revenue greatly, which can be important to ensure a business continues to expand.
Even the most successful businesses will fail to realize their full potential without the ability to take on new clients and larger orders. Universal Funding can help a variety of businesses make the most of new opportunities with our innovative financing methods.
What Is Factoring?
When it comes to business financing, conventional loan methods may not be suitable for every situation. Bank loans often entail complicated terms, as well as lengthy waiting periods which can cause a significant slow-down of important work functions. In this event, factoring can be an ideal option for a business looking for immediate funding options.
This process involves selling accounts receivable to a factoring company in exchange for a cash advance. Universal Funding assumes control of the entire invoicing process, including sending statements, collecting money owed, and working with customers that are behind on payments.
How Can Factoring Increase Revenue?
Selling accounts receivables can enable growth in a way that traditional loan methods can’t. For instance, investment opportunities may be lost once a business has reached its total loan capacity. Without the ability to seize such opportunities when they arise, a business may find itself hopelessly stuck in neutral.
Another benefit of factoring is the increased speed of incoming payments. Pursuing customer payments can be a time-consuming process when performed in-house, one that often requires additional manpower. With a third party responsible for the invoicing process, payments will be received faster, thereby allowing a more efficient reinvestment process. Not only is your time freed up, but your cash flow is no longer restrained, providing you with time and money to invest in growth.
Enable Growth through Increased Revenue
The right factoring company can help your business achieve the financial boost vital for continued success. When seeking innovative financing solutions, Universal Funding can provide an option suited to your exact needs. For more information on the many aspects of the factoring process, please give Universal Funding a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.