When your business is experiencing low cash flow, waiting 30, 60 or 90 days for customer payments to arrive can be detrimental to your business. Some companies decide to risk their relationships with vendors or delay procurement of new materials since they do not have bankable characteristics that would qualify them for a business loan. Factoring receivables allows businesses to access cash for open invoices before payment is due, and your business can qualify for funding through factoring even if you are not qualified for a loan.
Funding for All Types of Companies
Factoring is a quick and simple way to access capital for companies of all sizes and in all stages. Even businesses in special situations can work with a factoring company to raise cash:
- New companies or companies with little or no credit history: Since factoring companies consider the credit strength of your customers, your short company history or lack of credit does not necessarily mean you cannot sell your invoices.
- Companies with tax problems or liens: The factoring company will consider the lien amount and the agreement you have with the tax agency along with other factors analyzed for all companies to determine qualification.
- Businesses that cannot offer collateral for a loan: Your business does not need assets other than the value of your invoices to qualify for factoring.
Funding Without Debt
If your company cannot or does not want to take on the debt associated with a traditional business loan, your business can still benefit from accounts receivable factoring. Because you are selling the asset of your invoices to the factoring company, your business does not acquire any debt. With this type of cash flow funding, you can pay down vendors or bad debt to help improve your overall credit.
Find Out if Your Business Qualifies for Accounts Receivable Financing
Universal Funding works with all types of B2B companies. We can factor invoices for established companies experiencing a high rate of growth, or new businesses with good clients trying stake their claim in the market. Contact us today to find out if you qualify for factoring by completing our simple rate form.