Success in the business world often requires the appropriate financing to ensure essential costs remain covered at all times. For many businesses seeking alternative funding programs to best suit their needs, factoring receivables can be a great option to keep debt low while also obtaining financing in a timely manner.
Factoring receivables does not entail the lengthy waiting periods commonly associated with bank loans, which can be frustrating for those enterprises in need of funding quickly. This financing method also prevents large amounts of debt from accumulating, which can serve to cause future financial strife for the business in question.
How Does Factoring Receivables Work?
Factoring receivables is not a loan in the traditional sense, which can make it an ideal choice for those businesses looking to keep debt at a minimum. This financing option allows a business to sell any outstanding invoices to an interested company for a percentage of their total value (usually ranging from 70% to 90%). This allows a company to make use of its existing customer base to access the financing it needs to survive.
Which Businesses Are Best Suited to These Programs?
No matter the size or duration of operation, virtually every business can make use of receivables factoring. In general, these programs are well-suited to enterprises unable to securing financing through traditional means and methods. This includes many emerging businesses, as well as those entities contending with less-than-stellar financial histories. This is important for companies attempting to scale back on debt accrual, which can greatly hamper future growth.
Give Your Business the Tools It Needs to Succeed
Innovative funding programs can help those businesses not suited to more conventional options, to thrive and grow. Universal Funding Corporation can offer the service your business needs to acquire the financing necessary to achieve long term success. To establish whether your business is suited to take advantage of invoice factoring, please fill out our convenient rate form fast and efficient rate form.