As a business owner who is dealing with customers all day, you can’t often control when your clients are going to meet their obligations and pay their invoices. When their tardiness results in a loss of cash flow for your business, do you have options that don’t involve the lengthy process of getting a business loan?
Fortunately, Universal Funding can help. When your commercial clients are taking their time to pay your invoices and you can’t make ends meet because all your cash is tied up, factoring companies can take over and allow you to focus on the day to day operations of your successful company.
Is Factoring Right for You?
Ideal candidates for factoring have many of the same qualifications. If you fall into either of the falling categories, your business may benefit from factoring your invoices.
- Clients that request 15-90 days to pay their invoices
- Sell services and products to corporate customers
When your customers have agreements with you about payment terms, this can seriously compromise your cash flow. While you are waiting for them to pay, how are you supposed to meet your obligations? The solution is fairly simple.
How Factoring Works
Factoring gives you access to liquid cash that allows you to meet your obligations. Universal will buy your invoices and collect from your slow paying clients that may have good credit but require extended terms.
This is how the process works:
- Your services and goods are provided to your client and you bill them with an invoice
- A large percentage of the invoice is advanced to you by the factoring company
- After the set time period, your client will meet the terms of their invoice
- A second installment of the payment is rebated to you
This allows you to keep selling your products and services to corporate and government clients that may require a longer repayment time. You have the working capital you need to keep functioning, and the factoring company handles the rest.
At Universal Funding, we are confident we can help your business with its cash flow problems. Visit our rate form today to learn more about invoice factoring.