Top 10 Reasons For Invoice Factoring

The Top 10 Reasons to Use Accounts Receivable Factoring

At Universal Funding we have heard countless reasons why companies want and need our accounts receivable or A/R factoring services. Here are the top 10 reasons businesses choose to work with factoring companies for their financing needs.

  1. To Make Payroll: “We need to make payroll by the end of the week.”
  2. To Pay a Supplier: “We need to pay our trusted supplier for raw materials.”
  3. Declined by Bank: “We were declined for bank loan and still need financing.”
  4. A/R Management: “We don’t have someone monitoring invoices and incoming payments.”
  5. Slow Paying Customers: “Because many of our customers require 15, 30, or 60 payment periods, we have a small fortune tied up in accounts receivables.”
  6. Low Cash Flow: “Every single month, we earn revenue but never have cash on hand.”
  7. Fast Growth: “Sales are growing, but cash flow is dwindling. We can’t sustain this level of growth.”
  8. No Debt: “We don’t want any more debt, but we still need financing.”
  9. Can’t Fulfill Large Orders: “We can’t take on more customers or big jobs, because we don’t have the cash to front new projects.”
  10. Swamped: “We’re so busy, that we need a financing solution that’s fast and easy.”

If your company has faced any of the reasons why companies factor invoices, you’ll appreciate the top 3 benefits of invoice factoring:

  1. Our application, approval, and funding cycle is often completed in a matter of days.
  2. Because you’re trading one asset (invoices) for another asset, (cash), you are creating no debt and thus no payments.
  3. The cost ranges from 0.5% to 4.0%. On average our clients get factoring rates between .55% and 2%.

For more information about invoice factoring, contact us today at 1-(800) 405-6035 or fill out a rate form to speak with one of our factoring specialists today,

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