Businesses that sell to big box retailers have found that in order to remain competitive in today’s market, they have to offer credit terms to their customers. These terms allow customers to purchase goods today and provide payment at a later date, sometimes as much as 90 days or more later. While this is a great promotional move, most companies simply don’t have adequate cash flow to be able to bridge the gap between the sale of the product and receiving the payment. This strain on existing cash reserves winds up costing the business additional money in payment late fees and can put them in a compromising position with their vendors, potentially leading to a downgrade in their business credit profile and ultimately to the demise of the company.
The good news is that it doesn’t have to be this way. There is actually a way for your business to continue to be able to offer goods on credit while preventing the financial squeeze it so often causes. Invoice factoring allows you to take your open credit invoices and sell them to an invoice factor in exchange for a lump sum of usable cash.
Invoice factoring allows you to get the money for your invoices in as little as a few days which will allow you to make your weekly payroll, pay your suppliers, and even take on larger orders. You can cover all of your important expenses without worrying about your ability to service your customers.
If you are ready to turn your invoices into fast cash, give Universal Funding a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.[hs_action id=”1478″]