If a good chunk of your million dollar business is spent on managing your accounts receivable, you may be sitting on some quick cash without realizing it. Accounts receivable factoring companies like Universal Funding are willing to purchase those invoices, providing you with quick cash to use as you see fit for your business. Since some businesses haven’t used accounts receivable factoring, one of the first questions that come to mind is: is it safe?
How Your Clients Are Affected
Your clients are still expected to make payments on their invoices just like they would if you were to retain the invoice. They still make payments out to you; the client sends payments directly to Universal Funding for processing. We treat them like a valued customer, and may not even need to contact them directly. In essence, from your client’s point of view, there is very little change at all.
The Relationship Dynamic
Some businesses worry about how accounts receivable factoring companies will treat their clients. You don’t want to lose clients just because you sold some invoices. Factoring companies like Universal Funding work to make sure your client relationship remains strong and intact. We do not hound your clients the way that a collection agency does. We are only successful when you have a good relationship with your customers, so we treat them as they are our customers.
Choosing a Reliable Factoring Company Is Important
The biggest part of determining whether or not accounts receivable factoring is safe is the factoring company you partner with. Not all accounts receivable factoring companies are created equal, which is why it is important for you to research the companies before you sell your invoices. If you are really concerned about the effect factoring will have on your clients, then it’s vital that you are comfortable with your factoring company. For more information about invoice factoring and how we are dedicated to preserving your client relationship, contact Universal Funding today. Fill out our rate form to get a free assessment and check out some of our customers say about working with Universal!