Even when your business makes millions of dollars in revenue, there comes a time where you are still looking for a little extra cash for one reason or another. Invoices in your accounts receivable often sit waiting for customers to make their payments when they can actually help draw in some immediate revenue. With invoice factoring, you can sell those unpaid invoices to Universal Funding and receive cash quickly. What can your business do with cash flow garnered from factoring invoices?
Pay Your Bills
Your business probably has an office, headquarters, or some storefronts to manage. Each of these obligations requires a building and utilities. When you factor your company’s invoices, you can put the money toward paying the bills to keep your business running and your vendors happy.
Purchase Equipment, Materials and Products
Equipment, materials and products are part of your overhead costs. It is more difficult for your business to properly function without the money to buy materials and products or to purchase and maintain equipment. This is a particularly suitable use of your funds if your unpaid invoices are slowing your business to a halt because you cannot make any more purchases until customers pay their bills.
Grow Your Business
Eventually, there comes a time when you are ready to expand your business. You can use the profits from selling your accounts receivable to hire more employees, expand your selection, increase production, or purchase a new business location. Whatever you need to do in order to grow your business, you can do it with the money from invoice factoring. And the best part is there is no repayment on the funding you receive.
Do What You Will
Ultimately, the decision of what to do with the money you receive from invoice factoring is entirely up to you. That money is not required to go to any one specific category of your business. If you wish to pay your bills, purchase more products, grow your business, or just give your employees a bonus, it’s entirely up to you. For more information on how you can make the most of your company’s unpaid invoices, fill out our rate form.