What is Working Capital?
It is an undeniable truth that the success and growth of your business is reliant on the availability of working capital. Working capital is a company’s current assets less the liabilities and is a quick measure of a company’s financial health. When the current liabilities outweigh the assets it is an indication that some business elements are out of balance and usually the main one is cash flow.
Even when your business is thriving, you may find that you have a number of open invoices that are affecting your available cash flow. When issues such as these arise, you have the option of seeking out a loan from a traditional lender or seeking working capital by selling your invoices to an accounts receivables company such as Universal Funding Corporation. Since you are selling an asset, you do not incur any debt and you are able to utilize your capital immediately and as you see fit.
When you are looking for ways to stimulate the growth of your business, the availability of capital is an absolutely necessary component. If you intend on expanding, there are a number of costs involved that must be taken care of through additional funding. Whether you are seeking to add employees or open an additional location, immediate funding is often a requirement. You can take on debt through traditional lending options, or you can simply leverage your open invoices as the assets they are so that you acquire capital without incurring debt.
Many Advantages to Utilizing Invoice Factoring
When you are in need of immediate funding, invoice factoring is an excellent choice for a number of reasons:
- Rates that start as low as 0.55 percent
- Open invoices are the only asset required in order to secure capital
- No new debt is created
- Personal credit is not as important as the credit of your clients
- Same day funding
When it comes to the growth and long-term success of your business, consider how the influx of capital can be of assistance while also noting the benefits of avoiding the addition of debt.
Contact Us Today to Discuss Your Options
If you are in need of working capital and wish to take advantage of our services, please give us a call today at 800-405-6035, or fill out a rate form. We will be happy to discuss the options that are available to you and explain how invoice factoring can assist your business in any number of ways.