Proper use of Receivables Financing

If you’ve heard of factoring before then you may know that this particular financing strategy has helped a number of business owners. When used responsibly, this approach can help businesses grow, even if they have been through difficult times. It can also help companies that are perfectly sound to restructure debt so that the debt is more manageable, or can even provide quick cash for special projects like trade shows or launching a new product. The question you may have is whether receivable financing would provide your business with any immediate tangible benefits.

The only way to know for sure is to take a good look at what you are doing right now. If the aging on your receivables indicates that the majority of your customers are remitting payments well before the thirty day term, chances are that your payables are being settled in a timely manner. If most of your customers are remitting payments in the 30-45 day window, that could mean you have to spend a little time shuffling around the receivables to avoid some of the late fees your vendors apply.

In the latter scenario, working with a factor to provide receivable financing makes a lot of sense. By receiving a large infusion of cash from the sale of the invoices up front, you no longer have to juggle anything with your payables. Everything is settled on time without fail. That one benefit alone is immediate enough to justify entering into a factoring arrangement.

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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