In order to remain competitive in your industry, you’ve probably considered extending credit terms to your customers. In fact, it’s quite likely that you are already offering payment terms to your best customers.

While extending a credit term by 15, 30 or 60 days is just like offering an unsecured loan, it’s a risk most businesses are willing to take. You’re simply providing goods or services in return for a promise of payment in the future.

credit terms

Experts say that up to 96% of businesses fail within 10 years. Sure, you’re confident that that won’t happen to your business, but what happens if one of your customers goes out of business? And if they owe you money, how does that affect your cash flow?

If extending credit to your customers makes sense, then you will want do do everything you can to mitigate your risk. And, it is especially useful to assess the risk of a new client before you take the contract.

 

Factoring Companies Help Analyze Risk

As part of our invoice factoring services, Universal Funding analyzes the financial risk before you finalize contracts with new clients. We help you evaluate your customers by running background checks and commercial credit reports. The survival of your business relies on the ability of your clients to pay you. Our invoice factoring services will assist you in offering credit terms to your customers while reducing your overall risk–providing you with cash flow and peace of mind.

Contact us and we’ll show you how to reduce your risk and increase your cash flow. Call 1-800-405-6035 or fill out a rate form to get started today.