Funding options are limited for new businesses and businesses dealing with tax problems or other cash flow issues. Factor companies provide these businesses with a fast way to access cash that other lenders cannot offer. When your business is in a period of low cash flow, you need to find a funding solution before your vendor payments, payroll and operating costs are due. Finance companies that specialize in invoice factoring can provide you with funding no matter what issues your business is experiencing at this time.
New businesses face issues with cash flow while they are getting started. At the same time, they have difficulty finding funding solutions since they have only been established a short time and may have little or no credit history. These circumstances make it hard for new businesses to get a bank loan.
Invoice factoring is an excellent option for new businesses since it is not a loan:
- You are selling a company asset. You sell your open invoices to the factoring company, and the company collects payment from your customer.
- Factoring companies consider the strength of your customer credit and your customer payment cycles, not just your credit or business history.
- Application and approval for bank loans can take weeks or months, but your business can access cash within days through the factoring process.
Factoring companies can still work with your business even if you are experiencing tax problems. Universal Funding will consider your lien amount in relation to your monthly volume and the details of your workout agreement with the government agency. It can be a seamless process where the payments are directly made to the IRS.
Find Out if a Factoring Company Can Work With Your Business
Universal Funding works with businesses in all stages and in a variety of circumstances. Contact us to find out if invoice factoring is a solution for your company. Fill out our online rate form to request a no-cost consultation today.