Invoice Factoring – A Key Strategy for Cash Flow Management

Invoice factoring is a financial strategy that involves the sale of a batch of invoices to a funding partner, known as a factor. This approach offers a number of benefits to everyone involved, including the company who chooses to factor and their vendors.

invoice factoring

The factoring client enjoys the benefit of an immediate infusion of cash. Rather than having to wait for customers to send in payments, the money is available at the first of the month to begin paying bills owed to vendors and suppliers. The ability to honor those obligations on or before their due dates will certainly allow your business to get discounts. As a bonus, making timely payments will also help to enhance the credit rating for the business.

Your vendors and suppliers benefit from the arrangement because your payments are made on time. That means fewer resources are tied up in your business relation and keeps you in good standing with your suppliers.

If you are ready for Universal Funding to turn your invoices into fast cash, give us a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.

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