When a company offers customers a credit term, they agree to provide the goods or services today in exchange for payment in the future. It used to mean that the company agreeing to postpone the payment meant they stood to receive a premium from the customer at a future date, which is no longer the case in today’s marketplace. Nowadays this process of offering terms is a competitive way to earn new business, allowing businesses to keep their prices competitive while offering customers a convenient way to pay for their purchases over time. Unfortunately, situations arise that prevent customers from paying for their goods and services within the 30 day terms. By missing payments, they prevent a company from accessing the cash from the sale to produce more goods and services, putting them in a bad financial position.
By selling accounts receivables to an invoice factoring company, businesses can get the cash they are owed quickly and conveniently without the need to hassle customers for cash. Most small to midsized businesses don’t have an established collections department. It falls on an owner, or other executive to make collection calls when their skills may be better used towards building new business. By selling accounts receivables, you also free up those resources being misspent in the collections process.
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.