Is Invoice Factoring Right for my Business?

If you’re in the position needing capital funding and are beginning to explore your company’s options, you’ve probably come across the option of selling your invoices to a factoring company. But you may be wondering if this is viable solution for your company.

We’ve made it simple for you to determine if invoice factoring is suited for your needs by asking 3 simple questions.

list-of-three

  1. Who is your customer and who is paying on the invoices?  If your answer is another business, then invoice factoring is a very viable option.  If your answer is an individual consumer or an insurance company, invoice factoring is probably not the financing option for your business.
  2. Do you offer payment terms to your customers? 10, 15, 30, 45, or even 60 days? If you answered yes, invoice factoring is an option for you. If your customers pay the same day services are rendered or on a paid-when-paid basis, invoice factoring is probably not the financing option for your business.
  3. Are you a sub-contractor who gets paid from a general contractor? If your answer is yes, invoice factoring may not be the best suited financing option for your company. If you answered no, your business will likely benefit by factoring your invoices.

Factoring invoices increases the cash flow available to your business by accelerating the revenues tied to slow-paying invoices. This financing solution provides you with immediate cash that you require to operate your business. However, factoring helps you only if:

Your business is a B2B, offers payment terms for your clients and is not a sub-contractor.  If your business identifies with these qualifiers, invoice factoring is right for your business. Your cash flow concerns can be relieved by Universal Funding in a weeks’ time.  Give us a call at 1-800-405-6035 or fill out a rate form to get started today!

 

 

 

 

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