Cash flow problems must be resolved quickly when your company’s operating expenses cannot be covered. While fixed costs are predictable, revenue sometimes is not as easy to estimate. Months when cash levels are low might leave you struggling to find a solution to manage your company’s lease payments, vendor agreements or equipment rentals. When your business urgently needs funds to cover upcoming operating costs, your paid invoices may not provide revenue quickly enough to meet your needs. However, you can quickly access cash for the amounts due on open invoices by selling them to a factoring company. Invoice factoring often gets you funding faster than waiting for your customer payments to arrive.
Funding for Upcoming Costs
Your company’s fixed operating costs must be addressed each month, but periods with low cash levels make this task difficult:
- Your open invoice amounts, especially those due in 30, 60, or 90 days, may not be paid before your overhead expenses are due.
- Business loan funding from a bank will most likely not arrive in time to cover your current costs, as the approval process for banks often takes weeks or months.
- Finding a solution to this dilemma can affect all areas of your business by delaying projects, repairs or supply purchases or disrupting payroll.
Instead of delaying or missing your lease payment, payroll, taxes, or other monthly expenses, you can turn your open invoices into cash by selling them to Universal Funding. Factoring your invoices allows your business to:
- Get approval for funding within days instead of weeks or months.
- Access cash for your expenses within hours of approval.
- Sell an asset instead of incurring debt.
Traditional business loans may not meet your urgent need for cash. Factoring invoices get you access to cash to cover those expenses in time to avoid late fees or missed payments.
Cover Your Fixed Costs With Factoring
Universal Funding can provide your business with cash quickly by purchasing your open invoices. To find out how fast you can access cash to cover your monthly expenses, fill out our online rate form to request a no-cost consultation today.