Fast access to cash is crucial for every business to succeed. Unfortunately, businesses that rely on loans to satisfy their funding needs may find themselves losing both revenue and customers as they navigate the often complex process. As an alternative, invoice factoring will quickly help cash for companies that need sufficient funding fast.
Making Use of a Valuable Asset
Many businesses fail to realize what a valuable asset invoices actually are. By selling accounts receivable, a company can access the capital necessary to maintain important business operations. In some cases, a business can expect as much as 95% of the total value of invoices. Once customer payment is received, the remainder will be freed up for use as capital.
Conversely, traditional loans typically come with a variety of complications, including complex terms and lengthy waiting periods. Waiting for funding to come through can halt a business in its tracks, which will in turn give competitors an unfair advantage. By selling accounts receivable, businesses can obtain a much needed cash advance in far less time, allowing important functions to continue unimpeded.
Additional Benefits of Factoring
For thriving businesses, utilizing accounts receivable sell-offs can be an ideal way to ensure that cash flow is continuous. In addition to sparing a company from hashing out complicated loan terms, factoring has many other benefits:
- Funds can increase along with sales
- The ability to fill larger orders with ease
- Immediate funding for necessary expenditures, such as payroll
- Offers opportunity for business expansion
- Improves overall purchasing ability
- Allows a business better debt control means
- Funding is far more flexible as compared to traditional methods
Cash Flow When Your Business Needs It Most
For those interested in the invoice factoring process, Universal Funding can help you gain the financial support necessary for maintain a thriving business. Contact a representative today for more information on the many ways we can optimize your current financing plan. Give us a call at 1.800.405.6035 or submit a rate form for a free consult on your financing options.