If you’re a business owner or manager, you know that there are a slew of reasons why you may need an infusion of cash. You might:
- Get a big order for which you need to purchase materials. Or…
- You have a large unexpected bill. Or
- The IRS is hounding your business for taxes. Or
- Right now would be a great time to expand your business
All of these situations present their own unique need for more cash.
So, what financing options do you have?
- You can use credit cards. Or
- You can get a business loan from a bank
- You can bring on investors. Or
- You can sell some of your outstanding invoices.
Let’s look at the costs of each of these options.
Credit Card costs are typically 10-20%
Commercial Bank Loans are typically 12-18%
Institutional Lenders are typically 8-12%
Investors typically want 5-50% ownership of your company
And lastly, selling your outstanding invoices typically costs 4-6%.
Clearly, selling your outstanding invoices to a factoring company is the most cost effective option. Additionally, it is not a loan so there are no repayments and it does not add to the company’s debt. Not only is this option cheaper, it is the “fastest”, typically putting cash in your hands in less than a week. Invoice factoring has been around for centuries and has become increasing a staple of mainstream financing for businesses of all sizes in the 21st century.
Just listen to what Chris has to say about his experience with… Universal Funding, “Our company has tripled in growth since we became partners with Universal Funding and we anticipate doing business with Universal for many years to come.”
For more information about selling your invoices to Universal Funding, please give us a call at (800) 405-6035 or fill out a rate form so that one of our Business Development Associates can provide you with a rate proposal and application.