Universal Funding specializes in invoice factoring and provided $1.8MM in accounts receivable financing to three new clients in September. As these new relationships grow over the course of a year, Universal will provide up to $21.5MM in financing to these new accounts.
The companies that commenced factoring facilities in September include:
- A $100,000 monthly line for a learning institute that provides services to school districts in the L.A. metro area.
- A $250,000 monthly line for a trucking company based in Michigan, and
- A $1,500,000 monthly line for a minority-owned commercial construction company based in the Dallas metro area.
Recently, a newer finance platform, Kabbage, made an announcement that their funding average was $5MM per day. “We recently broke down what our average daily funding volume was, and were both surprised and impressed,” says Kyle Bergstedt, Universal Funding’s President. The major differences between Kabbage and Universal Funding is that Kabbage is VC backed, partners with a bank for its funding source, and offers credit limits no more than $100,000. Universal Funding is a privately owned, direct funding source whose clients typically use at least $100,000 in funding per month as opposed to over the course of a year. The two companies don’t compete for the same clients. “As you can see, we have the ability to fund companies who need $30,000 a month or $5 million a month,” states Bergstedt. How the two companies are similar is that the application and approval time is much shorter than that of a traditional bank loan. “If a company inquires about our services on a Monday, they can be financing by the end of the week; just in time to make payroll.”