We all know the economy has been in the dump the last few years. And yes, that has made things considerably more difficult for many businesses. Things like getting bank loans, offering terms to customers and waiting longer to receive payments have wreaked havoc on many small and medium-sized businesses.
None of this is new. The stories have been told on blogs and finance sites and in newspapers over and over again.
Factoring companies, including Universal Funding, have stepped up and shown many businesses how accounts receivable financing can bridge the gap in a slow economy and keep the cash moving. But what about in an improved economy? Does invoice factoring still have a place when an economy is growing?
You better believe it.
In fact, factoring might even be of more benefit when the economy as a whole is growing. One of the top benefits of factoring is the opportunity to grow a business. This is possible because factoring makes cash turn over faster, meaning a business has the ability to take on more orders, purchase more supplies and hire more employees. It also gives business owners more time to focus on what they do best: make smart business decisions.
In a slow economy, a manufacturing company, for example, might factor its invoices to make up for extended terms it offers to its customers, or to make sure it can pay its suppliers and employees on time.
In a growing economy, that company might experience an increase in orders but not have the cash available to fill them. Invoice factoring helps businesses free up capital to fulfill those incoming orders, allowing the business to grow immediately alongside demand, rather than limiting growth as a business waits for invoices to be paid.
Whether the economy continues to stagnate or gains momentum remains to be seen. Whatever happens, factoring your invoices with Universal Funding can put you in the best position to succeed and grow.
Easy Financing, Even in Tough Times
We live in tough times. Who really knows if the economy is on its way up or about to turn back down? Of course we all hope for the best but, the truth is, we just don’t know.
That’s why protecting cash flow is so important right now. In a growing economy, business owners like you will need to keep up with increasing orders. In a sinking economy, they will need to bridge the gap and keep the doors open.
It doesn’t help that, right now, companies face longer payment terms from customers and tighter loan restrictions from banks.
That’s where factoring with Universal Funding comes in. Factoring offers many benefits for companies of all sizes. Chief among those is the ability to produce needed cash very quickly. But there are other reasons why factoring is so advantageous for so many companies:
1. Factoring streamlines your accounts receivable duties
When you factor with Universal Funding, we assume the responsibility for managing the invoices. This means that you won’t have to worry about performing your usual accounts receivable duties such as sending out invoices or making follow up collection calls. We will even keep customer records for you, saving you the trouble of file storage and maintenance.
2. Factoring allows for increased cash flow without going into debt
The most common form of business funding is small business lending from traditional institutions. However, taking out a new bank loan requires taking on the responsibility of repayment. With invoice factoring, a company can avoid any new debt, which means no money to pay back.
3. Even companies with poor credit, or no credit at all, can qualify for factoring
Getting a bank loan can be a struggle for a business owner. It can be nearly impossible for a new business or one with no credit or bad credit. Since invoice factoring is based on the creditworthiness of a business’ customers, small and developing companies can use it to build cash flow, even if they don’t qualify for a loan.
4. Factoring gives business owners more time
Instead of following up on customer invoices, business owners can get right to work on new projects, new marketing efforts or new customer accounts. Universal Funding will take care of all the collections work, payment processing and record keeping for you.
5. Universal Funding offers even more
Whether you need the peace of mind of accounts receivable insurance, help with tax problems or just sound business advice from experts in the field, Universal Funding can help. The purpose of our business is to help you grow.
Invoice factoring offers many benefits to businesses including a fast cash advance period, a streamlined collection process and the ability to increase funds without taking on debt.
Two New Ways to Help Your Business Grow
Universal Funding Corporation, a leader in the business finance industry, has two new ways to help its clients succeed and grow.
First, the company implemented eFactor, an innovative software application allowing clients to view account balances, get payment details, view detailed activity reports and directly upload invoices to be purchased; all in a secure online environment.
The software helps streamline the process of funding and eliminates the need to fax or mail reports when requested by clients. Universal’s clients have access to their account information anytime they wish.
With eFactor, clients can run real-time reports such as Debtor Payment History, Collections, A/R Aging, Advance Rates, Reserve Balances and more.
Secondly, since accounts receivable are vulnerable to unexpected losses but are typically the only major asset left uninsured, Universal Funding now offers AR insurance. This program provides in-depth credit analysis and ongoing account monitoring to provide early warning of potential credit risks before they become a loss. This service provides valuable protection to the company’s clients against the consequences of customer insolvency and non-payment.
Universal Funding prides itself on providing workable solutions and customized finance plans to meet the needs of almost any company. Universal Funding’s strategic plan for growth includes providing clients with the best tools, funding and support to grow into highly profitable businesses. The peace-of-mind of accounts receivable insurance and the convenience of eFactor help meet those goals.
Factoring Frees Up More than Just Cash
If you’re familiar with invoice factoring, you know that it’s a common form of business financing that frees up cash for growing businesses.
What you might not know is that factoring can free up a whole lot more than just cash, making your business run even smoother.
How is that possible?
When factoring with Universal Funding, your program will include ways to:
- Ease credit worries
When taking on new customers, you can’t be sure of their creditworthiness. We remove that worry by giving you access to our in-house credit department, which will tell you if the customer represents any credit risk. The more knowledge you have about your customers, the better!
- Solve collection problems
With two in-house attorneys and a collections department, we can gently nudge over-due payers and make sure you get your money, while respecting your customer and giving you the freedom from ever needing to place another collections call.
- Save time and hassle
Universal Funding can keep track of your accounts receivable, freeing up time for you to focus on other areas that can result in more business. Outsourcing your AR can save a considerable amount of money and hassle!
- Answer tax questions and solve problems
If or when tax problems or questions arise, Universal can work directly with the IRS to make sure the issue gets solved.
- Eliminate slow payments
By factoring with Universal Funding, the problem of slow payments goes away. You get paid on your invoices right away, and we wait the 30, 60 or 90 days for your customer to pay.
When considering all of the extra ways factoring can help save money, its value becomes quite apparent. Factoring is a cost effective and efficient way for business owners to outsource several time-consuming responsibilities while saving money and, ultimately, increasing profits.
How fast can our factoring company fund your invoice? Typically within 24 hours. Factoring invoices is the fastest you can get standard commercial financing. The application can be completed in as little as a few minutes. Within hours, a proposal offer is sent to you.
Once your factoring account is set up, getting an advance on each invoice can usually take anywhere from a few hours to the next day.So after submitting an invoice from a completed job, we fund you within 24 hours. As a tool for growth invoice factoring is very easy to set up and quick to deliver.
Universal Funding is a financial services company that provides personalized capital funding programs (invoice factoring, accounts receivable financing) to meet your cash flow needs. With over 65 years of combined experience our team has the expert knowledge to help your business grow and succeed.
Universal Funding is a stand-alone financial entity. All principals are on site, on staff and manage all facets of our daily operations. Working shoulder-to-shoulder with our management team, account associates and customer service agents ensures direct interaction with our clients. We want you to know exactly who we are and how we do business. In turn, we’d like to get to know you and how we can best fulfill your business needs.