The Thrifty Scot Factoring Rate Comparison

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The Scots, known for their thriftiness, have a saying:  “Take care of your pennies and your dollars will take care of themselves.”  Lately the factoring industry has seen a number of newcomers offering their services for what seems like pennies.  Let’s take a look at one alternative finance newcomer that offers a private line of equity, and see how their fees stacks up to Universal Funding’s established low rates.


These same-day funding sites offer a standard rate of 1% per week with a minimum of 3 weeks. Wow!  85% advance and 1% rate.  On the surface, that sounds pretty impressive, doesn’t it?


How can Universal Funding compete?  We provide between 70% to 95% and our factoring rates  can start as low as 0.55% and are usually no more than 3%.


At first glance, it appears that the competition has the better deal.  But let’s look more closely.  There are a couple of key elements to consider.


  • Universal Funding doesn’t use a flat rate for every customer. They believe that every business is different and deserves a customized financing program.
  • Private equity lines of credit offer an alluring 1% rate, which is a “weekly” rate, so it increases by one percent each week. On a net 30 day payment, their rate is really 4% and on a net 60 day payment, it would be 8%. Factoring a $10000 invoice would cost you $400 at day 30 and $800 by day 60. Universal Funding provides a monthly factoring rate; if you were to agree to a 1.5% rate with Universal Funding  the same $10000 would cost you $150 at 30 days and only $300 at 60 days; less than half of what others’ rates would cost your business.


While a 1% flat rate is appealing, be sure to compare apples to apples.  Universal Funding wants to help you mind your pennies so that the dollars take care of themselves.  Call (800) 405-6035 or fill out a rate form today.



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