In many instances, the right financing can be a crucial aspect of achieving a variety of business successes. These include things like developing new products and services, or even undertaking debt management procedures to ensure continued growth is possible. Both of the above examples can greatly benefit from receivables financing, an innovative program that affords a rapid influx of funds when your business needs it most.
The Basics of Receivables Financing
While funding is important, many traditional options may not be suited to every business. This is especially true of things like bank loans and lines of credit, which can involve lengthy approval periods and accrue harmful debt in the process. For businesses requiring funding in under a week, this is going to be a faster option.
Receivables financing offers swift funding without massive debt accumulation. A company’s open invoices can be sold to a factoring company, who will then management payment on behalf of customers. For those businesses struggling with poor credit histories, or even businesses new to the marketplace, receivables financing can be an ideal option to obtain the funding you need when you need it most.
How to Determine If You Are a Good Candidate
While receivables financing can be a smart choice for many businesses, it’s important to determine whether you’re a good candidate before making any final decisions. This entails review of a few key elements to establish if such programs are a good fit for your business.
In general, those well-suited to receivables financing will have invoice re-payment periods extending beyond 15 days. Additionally, businesses with large amounts of debt or tax issues can also greatly benefit from this program. Acquiring loans via other methods can prove difficult for such businesses, which may be looked at as a risk by traditional lenders. We primarily look at the financial health of your clients in determining final approval. If your customers are big corporations, chances are we’ve previously worked with them and their vendors.
Ongoing Business Success Can Be Yours
When it comes to fast and efficient financing, Universal Funding Corporation has what it takes. Our innovative programs can assist numerous businesses in securing they funding they need to perform to the best of their ability. Please submit our rate form so that one of our associates can determine whether receivables financing is a good option for your current needs.