How Accounts Receivable Factoring Gets You Cash Quickly

If you are facing a large expenditure or owe money to vendors or the IRS and do not have the necessary cash reserves, no doubt you need cash. Business is good, orders fulfilled, but you are waiting payment on from open invoices. However, it is not likely that you will receive immediate payment on each invoice, nor is it good customer service to request it. If your need for funds cannot wait until all payments come in, an accounts receivable factoring company can help you get quick access to cash by using those invoices as an asset.

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How to Get Cash for Invoices Before Payment Is Due

Invoice factoring is a process in which a funding company, like Universal Funding, buys an organization’s open invoices in exchange for a lump sum payment. Invoice factoring is not a loan; there is no interest or schedule for repayment. Each invoice sold becomes a financial asset that gives the funding company the right to collect money from the customer.

If your company sells invoices to a factoring company, you will have access to the cash in a matter of days since there is no lengthy bank application process to complete. The accounts receivable factoring company does not have to perform a thorough investigation of your organization’s credit history so the application process is fast. In fact, the factoring company is more concerned with your customers’ creditworthiness, so invoice factoring is especially helpful to new businesses with little or no credit history.

If you’re in need of some quick cash to cover a looming payment, call 1-800-405-6035 or fill out a rate form to receive a free consult with one of Universal Funding’s experienced Business Development Associates.

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