Invoice factoring used to be relatively unknown way of keeping a business financially afloat. However, in today’s economy, invoice factoring is becoming more the norm and many businesses are foregoing getting traditional business loans in favor of this versatile and quick alternative form of financing.
Here’s how it works:
Your company reviews outstanding accounts receivable that is awaiting payment from your customers.You select the ones that represent the amount of money you need as well as provide the factoring company with the least amount of risk and then you submit them to an invoice factoring company, such as Universal Funding. The factoring company reviews these invoices, assigns a risk rating to them and then forwards an advance of the face value of the invoice to you in a matter of hours. When the customer pays, the factoring company forwards the balance of the invoice to you, minus the factoring fee. It’s that simple.
With invoice factoring, many of the usual cash flow problems and lack of solvency that businesses that extend credit terms to their customers experience are eliminated, making it an ideal arrangement for many companies who seek to recapitalize their businesses without going into debt.
If you are ready for one of the best factoring companies, 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.