Before you start applying for all kinds of different business financing options, it’s important to understand the qualifiers for those financing options. Many businesses have gone the route of seeking loans through banks and other lending institutions. If you are willing to pay the interest and wait for the approval, this is an acceptable option. What about accounts receivable financing? There are fewer requirements depending on the A/R factoring company you go through, but it can be a more desirable choice than a loan. Here are some requirements for qualifying for AR financing through Universal Funding.
Must Have Accounts Receivable
If you don’t have accounts receivable or invoices to sell, then we can’t buy them off of you. Your business must be large enough that you have accounts receivable. Your invoices must be large enough to cover the amount of money that you need. If you are a soloprenuer- running a business yourself and have no employees, you may not have an accounts receivable department, but you may have invoices. Before you apply for such financing, make sure you have something to sell.
Meet Minimum Requirements
There are a few different companies that provide AR factoring to businesses of various sizes. Universal Funding works with businesses that generate a minimum of one million dollars in annual revenue. As long as you meet our minimum requirements, we are happy to work with you to meet your factoring needs.
Desire Some Quick Cash
We are willing to work with you as long as you are willing to work with us. Many companies who turn to AR financing are in need of quick cash to meet their financial obligations. This doesn’t mean you can’t sell us your invoices if you don’t need quick cash. As long as you have the invoices to sell and meet the requirements, we can work out a financing program.
Start the Process Now
Factoring AR takes very little time, especially when compared with applying for a business loan. To learn more about our factoring services and requirements, fill out our rate form online or contact Universal Funding today.