Manage Your Company’s Credit With the Help of Factoring Receivables Companies

Your business was built on a reputation that you worked hard to earn. You do not want to risk that reputation for any reason. Damaging your company’s credit can happen in a matter of days with just a few wrong turns, and rebuilding credit takes a long time. That is why you should never risk your company’s reputation or credit if you can avoid it. A factoring receivables company can help your business find alternate solutions when low cash flow is threatening to destroy the reputation you worked hard to build.

How Can Factoring Help?

When your business is in a period of low cash flow, you may have to make tough decisions like cutting back on expenses or initiating a hiring freeze.Unfortunately, you may also be faced with the inability to cover payroll if you make loan payments or equipment leasing payments. These types of issues can affect your company’s credit standing and your business reputation. Instead of missing payments and damaging your business credit, you can quickly access cash by selling your company’s open invoices to a factoring company.

Factoring receivables is a simple process and quickly gets you cash for payroll or other expenses without missing loan or lease payments:

  • Your business offers the factoring company invoices with future due dates.
  • The factoring company provides you cash based on an agreed-upon percentage of the value for the open invoices.
  • The customers associated with each invoice still make payment out to your company but submit payment to the factoring company for processing.

Since your customer is sending payment to the factoring company directly, you do not need to budget for loan repayment. You can have your cash in a matter of days, allowing you to make those urgent payments on your loans and leases or cover payroll and other expenses without hurting your business’ credit or incurring additional debt.

Keep Your Credit Intact

Factoring companies help businesses find solutions to low cash flow every day. The process is straightforward, allowing companies to access funds that keep their credit and reputation intact. To find out how Universal Funding can help your business manage a financial crisis that will help your credit rather than hurt it, fill out our online rate form to request a no-cost consultation today.