While obtaining working capital can be extremely important for a business to thrive, traditional lending routes may not be ideal for every enterprise. This is particularly true for new businesses, as well as any companies struggling with a poor financial history.
When a business is in need of a quick influx of low-risk capital, getting a couple quotes for accounts receivable factoring rates may be worth considering. This financing method can afford a business the funding it needs to cover essential operational costs or unexpected costs. Additionally, factoring won’t accumulate debt like other lending programs, which can be detrimental to the overall success of a business.
What You Should Know About Accounts Receivable Financing
For many businesses, there are a number of obstacles standing in the way of acquiring traditional funding. Things like bank loans can entail lengthy approval processes, which may not be suitable to those businesses seeking capital in a hurry. Additionally, some companies may fall short of the often rigid qualifications implemented by many financial institutions.
In this case, accounts receivable financing can be an ideal solution for your business’s needs. This program affords the necessary funding by allowing a business to sell off outstanding commercial invoices to obtain that much-needed capital to cover essential costs. This option also prevents further debt from accruing, which can be counter-productive for those companies seeking to remedy past financial missteps.
Requirements for Determining Factoring Rates
When it comes to determining factoring rates, there are a few items that must be considered. These include:
- Duration of contract
- Customer credit and payment histories
- Volume of monthly invoices
- Overhead costs related to managing accounts
- Level of risk involved
Reviewing the above information can help a factoring company establish the best rates for a business’s exact requirements.
Suitable Funding for Every Business
No matter the company in question, Universal Funding Corporation can offer a suitable financing program ideal for you and your business. Our clients know they can rely on us to provide superior assistance in all aspects of funding, from quality customer service to extensive knowledge of the financial industry. Please see our rate form to decide whether this program is right for you.