For many companies, financing is the key to ensuring growth and future success. This includes businesses looking to restructure existing debt to a more manageable level, as well as those seeking funding for a new product or service. In this event, receivables financing can prove highly beneficial to any company seeking a quick influx of capital to cover pressing needs.
How Does Receivables Financing Work?
Receivables financing makes use of open invoices in order to gain much-needed funding for a variety of expenses. A company in need of funding will sell their outstanding invoices to a third party, like Universal Funding, who will in turn afford the company a swift payment.
Unlike traditional bank loans, receivables financing allows a business to obtain funding without incurring more debt, or having to withstand lengthy approval periods. Additionally, approval rates are far better with alternative lending solutions as compared to things like bank loans. This makes them a great option for new businesses, as well as those with poor credit scores.
Who Are the Best Candidates?
The best candidates for receivables funding are those with re-payment periods longer than 30 days. Instead of waiting for customers to remit payments, a company can sell off their outstanding invoices and receive funds instantly. This will allow a business to cover those essential costs that simply cannot wait.
Receivables financing can also be great for those businesses struggling with a large amount of debt or tax issues. Due to the nature of this financing option, factoring companies are taking less of risk with those businesses facing financial difficulty. This isn’t the case with other types of lenders, who may not be willing to fund a company that’s experienced financial instability in the past.
If you are having to turn down new business due to a lack of cash flow, your company is a prime candidate for our financing methods!
Achieve the Success Your Business Deserves
The right financing arrangement can allow your business to achieve the success it so deserves. Fortunately, Universal Funding Corporation can offer a variety of solutions to those companies in need of immediate financing. To determine whether this option works best for you, please see our fast and efficient rate form for more information.