Successful businesses are adaptable to changing market conditions. Selling accounts receivables in exchange for cash advances is the primary service provided by factoring companies. The factoring process fills a growing demand for cash for commercial capital that has grown steadily since banking regulations have grown stricter. Even prior to the great recession, factoring companies supplied capital to businesses that could not qualify for bank loans. The latest recession highlighted the need for financial services like factoring and it became a known business practice.
All a business executive needs to qualify for an accounts receivable financing program is the ability to submit viable accounts receivable assets in exchange for funds. In the simplest terms, a business sells their invoices for a cash advance. This strategy can rescue companies from financial ruin and also fuel future growth. There comes a time when every company could benefit from having extra cash on hand to upgrade equipment or to order additional inventory.
For companies interested in a financial partnership that can free up cash that is unavailable in the form of accounts receivables, factoring solves the problem. The benefits of this arrangement are many. Even a new business without established credit can obtain funds this way. The process is fast and easy. Since a cash advance is not considered a loan, the balance sheet is not negatively impacted by this arrangement. This type of financial partnership can be the answer that provides funds for the business expenses necessary to guarantee success and sustain business operations long-term.
For more information on Universal Funding and the financial assistance that we can provide your business, give us a call today at 1-800-405-6035 or submit a rate form for a free consult on your financing options.