Universal Funding Corporation reflects on how the 4th Quarter performed in terms of new business development and provides an outlook for 2014.
“The last quarter of 2013, especially the month of October, proved very stagnant when looking at a year over year comparison with 2012,” expresses Universal’s owner and CEO, Henry Wozow. “The two key factors that affected Q4 performance were the Sequester starting back in October and the lack of direction from the Small Business Administration.” Wozow goes on to surmise that the combination of the two events reduced business owners’ confidence in seeking funding for growth opportunities in Q4.
Universal Funding commenced approximately $2 million in factoring facilities for five new clients in December 2013. The new client accounts in the fourth quarter account for 17% of the total value of invoices factored from accounts gained in 2013.
The new accounts that started factoring facilities in December include:
- A $650,000 factoring facility for a transportation company on the west coast
- A $500,000 factoring facility for a compressed air provider in the New England region
- A $500,000 factoring facility for a commercial building maintenance provider on the west coast and
- A $150,000 factoring facility for a transportation company on the west coast
“What’s especially exciting about December is that we typically start to see a lull in inquiries for our invoice factoring services as the year comes to an end, but this year we saw more businesses seeking accounts receivable financing in December than any other month in 2013,” shares Wozow. “This demonstrates that more businesses will be gearing up for growth when opportunities are presented in 2014.”
This week President Obama appointed Maria Contreras-Sweet to his cabinet as the Small Business Administrator. The position still requires confirmation by the Senate, but the appointment itself shows progress as the job of SBA Administrator has been vacant since August of 2013. “This appointment to the SBA will hopefully increase confidence in business owners who have assessed that 2014 is the year for growth. What a lot of our prospective clients realize when seeking loans through the SBA, is that invoice factoring ends up being a better funding fit for their immediate needs,” concludes Wozow.