To maintain a competitive edge in today’s business world, your company needs to remain focused on improvement. Your business must continually invest, improve, profit and then invest again with part of that profit. Continual improvement leads to continual growth and profit, important factors for keeping on top in the market place. However, there will be times when the return on investment is slow and cash flow levels reflect that fact. Many businesses use invoice factoring as a way to bridge this gap in income between an investment and the return on investment.
Factoring Invoices as Part of Business Growth
Factoring your company’s open invoices allows you to collect cash for them before customer payments are due. A factoring company will provide you with a sizable advance and wait out the payment terms you’ve set up for your customers.
The application process is simple, and approval can happen within a few days. Your business receives cash within a few hours of approval and account set up. This allows your company to quickly bridge the gap between a major investment and return on that investment such as:
- Large material orders for new products
- Improvement changes in product creation or service management
- Research and testing
- Expanded real estate and equipment to accommodate anticipated higher sales volumes
- New talent searches and hiring
A traditional business loan can provide you with capital, but the application and approval process is much longer, often taking weeks or months until you receive the funding. Traditional lending often does not have the flexibility necessary to bridge the dips in cash flow levels that can happen during the cycle of investment, improvement and return on investment during growth periods.
Find Out How Factoring Can Help Your Business Bridge Gaps in Income
Universal Funding has years of experience supporting clients that are in the process of improving their businesses and waiting for return on their investments. We can help you bridge any gaps your company is facing through our accounts receivable factoring program. Find out more about our services by filling out our quick online rate form to request a no-fee consultation.