When it comes to establishing a new business, there is no greater need than cash. However, for new businesses, making sales can be difficult if there is no money with which to fund production to fill orders with. In some cases, companies can turn to banks or other lending institutions to get the cash they need while others simply don’t have the credit or guarantee to be able to get a loan. For those businesses, purchase order financing may be the only way to go.
Companies that need capital in order to fulfill customer orders can sell their open purchase orders for cash to a third party factoring company. The factor provides funding for purchase orders are worth based on the creditworthiness of the customer who placed the order and then ensures vendors received payment. Universal Funding also adds in their invoice factoring services to provide their clients with funding for the purchase order and cash flow once the product is delivered. It’s that easy.
Finding the best factoring companies for your needs can be a daunting task. They must have experience as well as a large portfolio of programs available. If you are looking for an accounts receivable financing company that can handle purchase order financing and invoice factoring, give Universal Funding a call at (800)405-6035 or submit a rate form today.