Are you familiar with the concept of factoring receivables, but find yourself wondering if this approach will really benefit your business? After all, the decision to sell invoices does mean that the funding partner will want some sort of fee. After adding up all the numbers you may realize that the amount of that fee will be offset by the money you save elsewhere.
Take a good look at your payables over the last several months. Consider how you had to juggle some of those pending payments while you waited for your customers to remit payments on outstanding invoices. How many of your debts incurred late fees and penalties because you had to delay payments by a week or more? When you begin to tally those amounts, you may be surprised at how much you are paying in the way of late fees.
The percentage that a factoring company keeps when you begin factoring receivables is likely to pale when you consider how much it is costing you to delay payments to your vendors and not take advantage of early pay discounts. When you take into consideration the fact that slow and late payments ultimately affect the company credit rating and the ability to secure additional credit, the small percentage that it costs to factor will seem like the wisest investment you could make.
If you are ready for Universal Funding to turn your invoices into fast cash, give us a call today at 1-800-405-6035 for a free consultation of your financing options.