Businesses in need of quick working capital no longer have to wait for traditional commercial lenders to wade through days of waiting and red tape only to be denied. Rather than incurring additional debt, companies can choose to sell their open invoices to a factoring company like Universal Funding in exchange for a payment equaling a large percentage of the value of the invoice. Here’s how it works:
A business sells products or provides a service to a customer and then creates an invoice to bill the customer at a later date. Rather than wait for the customer to make good on that invoice in 30 days, the company chooses to sell that to a factoring company. They will receive up to 90% of the value of the invoice in a matter of days and can utilize that cash to cover day to day operating expenses, buy new equipment or increase inventory without the hassle of waiting for a commercial loan to come through. This prevents the business from taking on any new debt while preserving cash flow and keeping the business flowing.
Having more cash on hand means that you can get caught up on payments to vendors, cover payroll, and start investing in your company. For some that may look like purchasing updated equipment; it might mean being able to afford a marketing campaign; or it just might mean being able to fulfill more orders.
When you are ready to learn more about this fast cash solution from Universal Funding, get your rate today or call 1-800-405-6035 to speak with one of our Business Development Associates!