Receivable Factoring Companies-How to Cope with Extended Terms

Business professionals spend a great deal of their time worrying about the funding that keeps their businesses going. In an ideal world, customers would pay their invoices on time and businesses would be able to operate using their available cash. But in the real world, payments are late or have extended terms and that is when financial issues start to develop.

receivable factoring companies

A company with a healthy aging report filled with outstanding invoices should not have to go to a bank to borrow money just to fill orders. With the help of factoring companies, that business owner can utilize the revenue his sales department worked so hard to generate to pay bills and keep the company moving forward.

Receivable factoring companies look at all of the outstanding invoices on your receivables aging report as assets. That is just one of the many key differences between a bank and a factoring company. A bank needs tangible assets to secure a loan, while a factoring company can use the invoiced sales your company has generated to get you the sustainable line of business credit you need.

A factoring company will use your outstanding invoices as the collateral necessary to secure cash advances. Those cash advances will go directly into your company’s bank account and you can use that money to pay vendors, meet payroll, and even embark on those growth projects you have been planning.

When you do business with a factoring company, you do not need to worry about the status of your company’s credit. The factoring company will only need to analyze the credit status of your invoiced clients to make its decision on whether or not to advance your company funds. As long as your customers are creditworthy, then you have everything you need to get critical financial help from a reputable and professional factoring company.

If you are ready for Universal Funding to turn your invoices into fast cash, give us a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.

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