Factoring Receivables –Using Invoices as Financial Instruments

Factoring receivables is a term used to refer to the process where companies can sell their open invoices to receivable factoring companies in exchange for an advance, typically worth 70-90% of the value of each invoice. Financing accounts receivable is a sales transaction, not a loan. This means that your company no longer has the hassle of collecting the invoices from customers and there are no repayment obligations to the factoring company. The invoices are not used as collateral against a loan. They are offered as financial instruments that are traded for cash. Because this type of financing does not require any sort of repayment, there is little business or personal credit requirements for the business owner.

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The factoring process is open to businesses of all shapes and sizes; no matter how long they have been in business or what industry they are in. As long as the sales transactions are B2B and they are not directly selling to individual consumers, factoring receivables is a finance option. This means that companies who don’t qualify for more traditional financing options can still get the money they need, quickly and easily, by financing accounts receivable. Universal Funding can help you with financing accounts receivable, if your business is in need of cash and simply can’t or don’t want to get a more traditional loan from a bank.

If you are ready to turn your invoices into fast cash, give Universal Funding a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.

 

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