Debt factoring is the sale of a business’ invoices to a third party. The third party, or the receivable factor, is charged with processing the invoices, and the business selling the invoices is able to receive funds based on the expected payments on the invoices. Debt factoring is also known as the selling of account receivables.
There are many advantages to debt factoring. First, debt factoring provides a business with immediate cash flow for the accounts receivable of the customer. This facilitates smooth growth. Debt factoring also enables the business to reduce the time frame for its cash cycle, thus being able to purchase goods and sell them to make profit. An added bonus to the selling of account receivables is that it helps protect the business from bad debts, especially when using non-recourse factoring. Finally, invoice or debt factoring offers a method of being paid right away on invoices that would normally take 30 to 90 days to pay otherwise.
Considering these advantages of selling account receivables, debt or invoice factoring is a wise solution for fast cash flow solutions.
To learn more, please go to our Get Rate page.
Manufacturing Company Funds Holiday Growth by Factoring Invoices
Earlier this year a manufacturing company’s product was mentioned on a morning talk show that suddenly caused a high demand for the product, which depleted their stock almost overnight. With the holidays approaching and the knowledge that their product could be the hottest Christmas item sold in stores, the company needed fast cash in order to manufacture more products for Black Friday sales.
Their bank credit line was already fully extended and the owners didn’t have sufficient cash for a capital investment, but the company did have an asset it could sell without a setback—accounts receivable invoices. By factoring their invoices to Universal Funding Corporation, this manufacturing company was able to get a cash advance on what their customers owed them in order to fund this new growth opportunity.
Universal Funding provided the manufacturing company with enough cash to purchase the raw materials needed and cover the labor costs to produce enough inventory to meet the demand for their product. This company was able to take advantage of a rare opportunity to grow their business in a hurry. Without factoring invoices they may have missed the chance to double their profits in one holiday season.
For more information about accounts receivable factoring contact us Universal Funding Corporation today.
A Word to the Wise about Factoring Receivables
Businesses-to-business companies in need of working capital can survive and grow in tough economic times through factoring receivables. Invoice factoring is a smart alternative to traditional business financing. Rather than pledging assets as collateral for a loan that you must repay with interest, a factor purchases the asset (accounts receivable invoices) at a discounted rate, thus no debt is incurred.
Universal’s Fast Funding
• 2 minutes on the phone for line of capital and rates
• 2 days to process your approval
• 2 hours to transfer cash into your account
Universal Funding Corporation can provide immediate cash to compensate for rising costs of materials, inventory and overhead. When it’s the off-season or an unusually slow time, AR factoring can carry you through slow times. If it’s time to invest in new technology or innovations and immediate cash is necessary, Universal can help. Small, medium and large businesses can free up time spent managing A/R and fuel growth in their business through factoring receivables. There are many advantages to factoring invoices with Universal Funding Corporation.
Do you need $50K per month? $500K per month? $5M per month? There’s no limit to the cash available. Since Universal Funding is family owned and operated, there are no hassles with third parties, no board of directors’ approval, just cash straight to you.
Starting at 1%, our rates are the lowest out there. We want your business to grow, not just break even. Click here for a quote or call us at 1-800-405-6035.
Factoring Companies in Texas
If you are looking for factoring companies in Texas, Universal Funding can provide you the best financial services . Factoring invoices is our primary service; this is where you can sell your accounts receivable to us, and we provide you with a cash advance on those invoices. Universal Funding offers very competitive rates and can compete with the best factoring companies in Texas when it comes to customer service. You’ll find that Universal has the highest quality of services at the lowest price even though we are not located in Texas.
In the past, other Texas based companies have used Universal Funding for their factoring services. We have funded:
A $200,000 account limit for a Marketing Research firm in Frisco, TX
A $1M account limit for an Oilfield company in Waxahachie, TX
A $3.5M account limit for a Manufacturer in Waxahachie, TX
A $200,000 account limit for a Real Estate Developer in Panola, TX
An $800,000 account limit for an Industrial Contractor in Arlington, TX
A $700,000 account limit for a Welding firm in Maypearl, TX
A $250,000 account limit for a Custom Hardware Company in Wichita Falls, TX
A $300,000 account limit for a Wholesaler in Spring, TX
A $150,000 account limit for a Welding Company in South Houston, TX
A $120,000 account limit for an Importer in Selma, TX
A $300,000 account limit for a Security firm in San Antonio, TX
Universal Funding has been providing accounts receivable factoring for over 20 years. We provide the best capital funding with over 65 years of experience in the industry. Our team is truly qualified and filled with financial experts. Universal also has live chat and phone support available, in case you’d like to get in touch with us.
If you want to follow the footsteps of these successful Texas companies, please call 1-800-405-6035 or click here to fill out a rate form, and one of our Factoring Specialists will follow up with you.
Account Factoring for Future Growth
Now that the big game is over and we are recovering from all the fanfare, food, and fun, it’s time to get back to business. In business, just like football, what gets people talking and keeps them talking isn’t the big plays, the thoughtful leadership, and strategy. Unfortunately, it is usually what went wrong that is the most memorable. Let’s look at the one thing people are still talking about the most from this year’s Super Bowl; the game delay caused by the power outage. The game delay changed the mood and intensity of the game entirely.
Don’t let natural invoicing delays be a game changer for your company. Do you have unpaid invoices that you will be waiting 30-90 days until they pay? Or maybe you need immediate financing to pay your payroll, manufacturing costs, or transportation fees. Account factoring may be the best solution for the problems your business may be facing.
Account factoring, also known as invoice factoring, is the sale of invoices to a third party factor for quick financing. It can free up your money that is stalled due to account receivables terms, improve your cash flow, and provide funding to expand your business. Account factoring provides you with a debt-free financing option if you have open invoices.
Factoring your account receivables provides you a quick way to get financing and access to cash flow by using income you have already earned on performed services or delivered products. It does not require borrowing, incurring debt, or giving up ownership of your business. You use your company’s assets to further your growth goals.
You can receive between 70%-95% of your unpaid invoices instantly. Once the debtor pays the factoring company, you will receive the remaining percentage minus a small factoring fee. With many other high interest rate offers and exponential fee options out there, account factoring may just be the solution your company needs.
Contact us today at 1-800-405-6035 to speak with one of our factoring specialists or get started with your risk free quote.
Payroll Finance for Cash Flow Shortages
Are you facing financial issues in your business that is preventing you from paying your employees? Whether you have five or five hundred employees, they deserve to be paid on-time every month. We typically see payroll shortages in the staffing and temporary personnel industry, however many companies who experience seasonal dips in income face payroll hardships.
The good news is that Universal Funding can help! Our team is experienced in working with companies to work through cash flow shortages to make payroll obligations. We offer advances to companies that have proven to be profitable but may be facing a temporary shortage. Unlike traditional loans or working with other factoring companies with high rates, Universal Funding is privately funded and is able to offer low rates.
Grow Your Business
In fear of needing reserves to make payroll, many business owners will not take many chances to grow their business. Payroll financing can allow you to use your reserves to generate new business through new lead generation, bids or additional hiring. Have you ever wondered how your competition can grow and prosper in these economic times? Chances are they were factoring invoices to assist with payroll funding.
If you are interested in using payroll finance call 1-800-856-7014 to speak with one of our Business Development associates or get your rate today!