Top Reasons Why Your Company Should Use Factoring Services

If you own a business or hold a high-ranking, c-suite position in any company, you have almost definitely heard of factoring services, but you may not understand how these services can benefit your company directly. Even if you run a very successful operation and have plenty of cash flow, you will most likely run into a situation where one of your customers does not pay on time. When this happens, it could put you in an unfortunate financial situation that makes it difficult to pay your vendors and employees.

cash-advance_factoring

To avoid the repercussions of ruined vendor and employee relationships, take advantage of the factoring services that Universal Funding provides to businesses just like yours. Here are the top four reasons why large businesses should use factoring services:

 

  1. Receive Money Fast

Unlike traditional business loans, factoring agreements can often be made within 24-72 hours. Receiving a rapid cash advance can be extremely beneficial for a company that is trying to meet payroll or rapidly expand their business operations.

  1. Receive Funds Without Going Into More Debt

Although traditional loans have their time and place, it is wise for businesses to stay away from new debt. By receiving a cash advance for outstanding invoices, you can receive the funds that you need without indebting yourself further to a traditional financial institution.

  1. Avoid Awkward Collections Responsibilities

No business enjoys harassing their customers for money, and when you take advantage of factoring services you can receive the funds you need without threatening legal action against your late-paying customers.

  1. Save Money

It may seem counter-intuitive that you can save money by hiring a factoring company, but in some cases it may be more affordable than employing a large collections department. We can also help if you currently have an understaffed collections department that simply cannot handle all of your outstanding invoices.

If you need money fast and you do not want to wait for a traditional loan, we can quickly give you the money you need for your outstanding invoices. Fill out our rate form today!

Leave a Reply