When the buds on the trees start to blossom in the spring is when Universal Funding sees an increase in inquiries and clients. The spring of 2015 is no different. Six new clients began utilizing the factoring services of the nation’s leading factoring company in the past month.
“This past winter was tough on the Northeast and the businesses operating in that region, so it’s no surprise that the companies seeking our cash flow services this past month are based in that area,” explains Universal Funding’s President Kyle Bergstedt.
A snapshot of northeast based clients who began funding in March includes:
- An IT Firm based in New Jersey with a monthly factoring line of $600,000
- A Janitorial Staffing Agency in New York with a monthly factoring line of $300,000 and
- A Hauling and Transport operation in Pennsylvania with a monthly factoring line of $150,000
“These businesses made it through the extremities of the season and now are ramping up production and need financing to bridge the seasons,” shares Bergstedt.
While it’s impossible to know for certain the quantitative effect weather plays in the economy, Economist surmise that the chain of winter storms in 2014 shrank the Unites States’ economy by 2.1% in the first quarter. The number crunchers are still determining the economic impact of the 2015 winter storms. If the bad weather was persistent enough to affect supply chains and inventory, Q1 losses can mirror the previous year’s shrinkage.
These economic impacts are felt on the business level and the effects reveal themselves in cash flow. When cash flow is low, accounts receivable financing is a fast solution to bridge working capital and production.