March 17, 2014 – Every spring businesses face tax time and they must prepare their information for taxes. Many business owners put off the timely task because they think they will owe. In some instances they put it off by filing extensions until the money is available.
Factoring helps business owners so they do not have to file an extension or gain interest on an outstanding balance. Factoring can free up funds so that an unpaid tax balance can be paid off to prevent liens from affecting future cash flow. Universal Funding, one of the country’s leading invoice factoring companies, reports that the 2014 tax season is creating a much bigger demand for factoring than any previous year.
Henry Wozow, CEO of Universal Funding says, “We usually see an increase in inquires at the end of Q1 due to companies needing invoice factoring to free up funds to meet their tax obligations. This year this trend seems to be escalating. I believe it’s an indication that business owners are more aware of invoice factoring and not necessarily an indicator of changes in the economy.”
Twenty years ago most business owners didn’t know about invoice factoring as a financing option. Today, most business owners recognize the value of invoice factoring for meeting payroll, making their bills, and now meeting their tax obligations. Tax time can be a stressful time of year for most businesses, but being able to pay off taxes in one quick transaction rather than delaying the inevitable is one benefit of factoring with Universal Funding.