Define Factoring – the Nuts and Bolts

Factoring is a term used to describe the process of selling your accounts receivable to a third party in exchange for a cash advance. This process provides companies at all stages of development the opportunity to get the financing they need to conduct their day to day business transactions without going into debt. Because factoring isn’t a loan, there is stricter qualifying criteria and no repayment obligations, which makes it a perfect alternative to traditional commercial loans and financing arrangements.

New companies with limited credit histories and time in business can still be approved for a factoring program as long as their A/R is healthy and growing. Even established companies, who operate in industries that have limited financing options due to notoriously long terms, can find a financing solution in factoring. Factoring is fast, much faster than traditional financing. In most cases, a factoring transaction can be closed in as little as 48 hours, which provides cash much faster than getting a loan, which can take weeks if not months to close.

So, if your business has a need for fast cash and either don’t qualify for or don’t want to get a traditional loan, consider talking to the friendly professionals at Universal Funding today and get the money you need quickly. 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.

Your Questions Answered Quickly

Whether your business is thriving and you can’t keep up, or you are waiting on clients to pay their invoices, Universal Funding can help your growing company. Call us at 844.334.1856 or complete our rate form today to learn more about invoice factoring and how it can improve your company’s cash flow.

About Universal Funding

Universal Funding is a private funding source that has funded thousands of businesses and more than $2 billion since 1998. We turn your accounts receivable into the funding you need through invoice factoring and can have capital in your hands in a matter of days.

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