factoring questions

If your business needs capital funding and you are exploring your company’s options, you may have heard about selling your invoices to a factoring company. You may be wondering if this is viable solution for your company. Here is a simple way for you to determine if invoice factoring is an option for you by asking these three questions.

  1. Who is your customer and who is paying on the invoices?  If your answer is another business, then invoice factoring is a viable option. If your answer is an individual consumer or an insurance company, invoice factoring is likely not the financing option for your business.
  2. Do you offer payment terms to your customers? 10, 15, 30, 45, or even 60 days? If you answered yes, invoice factoring is an option for you. If your customers pay the same day services are rendered or on a paid-when-paid basis, invoice factoring is likely not the financing option for your business.
  3. Are you a sub-contractor who gets paid from a general contractor? If your answer is yes, invoice factoring may not be the best suited financing option for your company. If you answered no, your business will likely benefit by factoring your invoices.

Factoring invoices increases the cash flow available to your business by accelerating the revenues tied to slow-paying invoices. This financing solution provides you with immediate cash that you require to operate your business. However, factoring helps you only if your business is a B2B, offers payment terms for your clients and is not a sub-contractor.

If your business identifies with these qualifiers, invoice factoring is right for your business. Your cash flow concerns can be relieved by Universal Funding in a matter of days. Give us a call at 800-405-6035 or fill out a rate form to get started today!