Factoring receivables is a great way to make use of a financial resource sooner rather than later. By working with a funding company, it is possible to obtain a lump sum of cash shortly after delivering a product or completing a service and mailing your customer invoices for the month. That quick infusion of cash will go a long way in helping to keep your payables up to date.
The time frame for receiving that first payment from the funding partner does vary slightly from one company to the next. Most firms will review and approve the submitted receivables on the same day it is received. This makes it possible to initiate an electronic funds transfer that will have the money in the client’s bank account by the following business day. Universal Funding has one of the quickest verification processes so when their clients submit an invoice to fund it is funded in a matter of hours.
Keep in mind that the advance does not equal the total value of the invoice(s). On average it will usually be in the range of 70% -90% of that value. The rest will follow as your customers begin to remit payments within the agreed upon terms that you have worked out with your client. Eventually, you do receive the remaining balance of the batch of invoices, with the funding partner only withholding a small percentage of that value as payment for services are rendered.
If you are ready for Universal Funding to turn your invoices into fast cash, give us a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.