When you wait 30, 45 or 60 days for customers to pay their invoices, your business can stagnate. You have projects that need to be started in order to expand your business, but the costs are prohibitive when cash flow is a concern. Factoring receivables is an excellent alternative to bank loans that can help your business quickly get cash to invest in growth.
Stopping the Cycle of Waiting for Payments
While you wait for customer payments, you exhaust your existing cash reserves to cover current operating costs. When payment comes in, you no longer have the cash reserves to fund projects. This cycle keeps you from the important investments you need to make in projects that will help your company grow. If you could invest in your company, you could grow your cash reserves, but it is difficult to make that investment relying on current invoice payments.
Invoice factoring gives your business an influx of cash to fund your company’s growth. The money can be used for a variety of investments:
- Hiring additional employees
- Acquiring more efficient equipment
- Making repairs on facilities or expanding facilities
- Purchasing raw materials and supplies
How Factoring Receivables Gets Your Business Funds for Growth
Invoice factoring gives you access to cash faster than a traditional bank loan. Approval for accounts receivable financing applications can be as quick as 24 hours instead of the weeks or even months that a traditional lender may need to make a decision. A funding company looks at the credit and payment history of your customers, using these factors to help quickly complete the approval process.
Once approved and invoices are submitted, it is only a matter of hours before you receive funds. You will have the finaces to immediately start projects that will bring in more cash instead of waiting for customers to make payments.
How You Can Start Investing In Your Business Today
Universal Funding offers a simple application process for businesses interested in invoice factoring to access funding quickly. Call 1-800-405-6035 or submit a rate form to discuss your cash flow needs today.