Invoice factoring companies compete to purchase your company’s open invoices and provide you with a lump sum based on the invoice amounts. You may not think you will qualify for receivables financing, but many factoring companies work with businesses in many situations that eliminate qualification for traditional business loans. These finance companies provide services to businesses with a variety of cash flow needs. If your company is in the B2B space, providing goods or services to other businesses, you meet the main criteria.
Businesses That Require Immediate Cash
Invoice factoring can be used by a wide variety of businesses that need to access cash before customer payments are due. Factoring companies help your business by providing:
- A no-debt solution to capital
- An approval process that is completed as fast as a few days
- Cash within hours of approval
- Flexibility to work with current lines of credit
- Flexibility to work with outstanding tax debts
Businesses With Little or No Credit History
New businesses often have more obstacles in the way of finding funding solutions than well-established firms. Part of the problem is that a new business has not established a solid credit history. Factoring companies can be an excellent partner for your new business.
Factoring takes several variables into consideration besides a company’s credit. The company will look at your customers’ credit, their payment cycles, and your invoices and sales volume.
Businesses With Tax Problems
You may think that your business has no options for outside funding due to your issues with the IRS or other government agency. However, Universal Funding works regularly with businesses experiencing tax issues, including liens with the ultimate goal of having them paid down while not affecting cash flow the business needs to operate.
You may still qualify for receivables financing after our in-house underwriting department examines the details of your individual situation. Then we will recommend a financing program that considers the lien amount in relation to your monthly volume and the details of your workout agreement.
Find Out If a Factoring Company Can Work With Your Business
Even when traditional lending options are not possible for your business, accounts receivable financing may still be a solution to your need for capital. Universal Funding can answer your specific questions about invoice factoring and the ways it benefits your business. We help businesses in many different situations. Fill out our online rate form to request a no-cost consultation today.