The Protection Provided by Factoring

There is a veritable ocean of options for you to choose from when you’re attempting to collect on your outstanding invoices. Each claims to the best way to reconcile your accounts receivables and bolster your company’s bottom line. Yet while some may offer distinct benefits in certain areas, few can provide that same sort of comprehensive advantages that come from factoring. If it’s only your unfamiliarity with the process that’s kept you from pursuing the services provided by receivable factoring companies, then it’s about time you be educated as to their benefit.

fast invoice factoring

All of the benefits available from factoring your invoices can be described by one simple word: protection. Your factor can assist you in almost every aspect of the supply-chain process. This allows you to focus on doing what you do best: providing your clients with outstanding goods and services.

Comprehensive Security for Your Company

The protection provided by factoring is truly comprehensive. You’ll see it in every stage of your business, including:

  • Contracting: As you assume new clients, your factor can provide you with information regarding their credit history and repayment capacity, helping you avoid taking on orders that could potentially result in bad debt and transactions.
  • Production: Factoring also allows you the financial resources you need to meet increasing production demands. Having the cash value of your invoices in hand without having to wait to receive the money from your clients ensures your capacity to fill orders.
  • Collections: Your factor can offer you credit protection on approved sales in the form of A/R insurance. That means that approved invoices will still be paid even in the event that a client fails to meet the obligation.

Factoring can provide your company with untold levels of protection when it comes to taking on new clients and dealing with struggling clients. As your factoring partner assumes much of the risk that comes with invoicing, it’s beneficial for both sides that measures are in place to help to ensure payment. We here at Universal Funding can help provide your company with the protection you need to fill orders without a financial strain. You can see right now the potential benefit of working with us. That information can be available to you simply by filling out our online rate form.

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