Dealing with the IRS or a local tax agency can take up valuable time and business resources. Your employees and customers depend on the continued health of your company while you address tax issues. If paying outstanding taxes puts a strain on meeting operating costs, you may have little options for securing capital to cover all costs. Many lending institutions will not work with you while you experience tax problems. Universal Funding helps provide financing via invoice factoring so that you are able to pay down taxes and still have operating expenses covered.
Factoring, also known as accounts receivable financing, is the process of selling your company’s open receivables for a discount. Businesses factor their invoices for a variety of reasons:
Invoice Factoring as a Funding Solution
- The application and approval process is much faster than the bank loan process. Instead of waiting for weeks or possibly months for bank approval, your business can access capital as fast as two or three days.
- Because your business is selling assets to the factoring company, your company will not incur debt. The factoring company collects payment from the customer associated with the invoice you sold.
- Factoring companies consider many variables outside of your company’s current credit or cash flow, focusing on the credit standing of your customer and their payment history. This allows businesses that do not qualify for traditional bank loans to qualify for accounts receivable financing.
Since the approval process for factoring is different than for a business loan, your company can find funding through receivables financing even with a tax lien. Top factoring companies make approval decisions based on the lien amount in relation to your monthly volume and the details of the workout agreement with the IRS or local agency.
Access Funds from a Top Factoring Business
Universal Funding works with businesses experiencing tax problems and liens. We can help your business access funding through the sale of your open receivables. Contact us today to learn more about factoring by calling us at 800-405-6035 or completing our simple and quick rate form.