After conducting a performance analysis of Q1 in 2013 compared to Q1 in 2014 Universal Funding, an independent factoring company, concludes that a healthy gain was accomplished. In the first quarter, Universal purchased a total of $28M and $33M in 2013 and 2014 respectively. This is an 18% increase in volume purchase which contributed to an 8.75% increase in revenue for Q1 in 2014.
“What this analysis indicates to our executive team is that we’ve achieved a healthy rate of growth. We wanted to avoid a rapid growth rate would overwhelm our infrastructure and staff,” expresses Kyle Bergstedt, President. “At this rate of growth, we can still provide our clients with a high level of service, create jobs in our community, and pursue new opportunities.”
The factoring industry as a whole has grown by about 15% every year for the past 10 years. The growth experienced by the industry was bolstered in part by the Great Recession. When bank lending became restricted alternative lenders became the first funding option. Another element that explains the continued growth in the factoring industry is a gradual shift in perception from “What will my customers think about us factoring?” to “My customers will understand the decision to factor receivables in order to grow my business.” The past perception presented a roadblock for companies pursuing receivables financing where today, the emerging perception is one with less of a negative stigma.
Independent factoring companies, such as Universal Funding, are pleased to see a shift in demand where five years ago factoring was a necessity to keep businesses open and people employed versus today where factoring is a necessity for a business to take advantage of growth opportunity.