Top Questions to Ask Your Factoring Company

What exactly is factoring?
Factoring is the purchase of your accounts receivable (invoices) in order to provide you with the cash flow you need when you need it. Factoring is a widely accepted business practice used by large, mid-sized, and small companies.In most cases, we can have you the cash you need in 48 hours. Once you've established your account, the process takes just 24 hours.

How does Universal Funding's service work?
Here's how it works... You perform a service or deliver a product and you are ready to invoice your client, the amount is $25,000 (it could be as high as $100,000). Fax a copy of the invoice to Universal Funding so we can begin working for you right away, then overnight us the original.

For what types of receivables will Universal Funding pay me cash?
Any type of receivable for which a service has already been rendered or a product has been delivered. There are just a couple of exceptions that your Universal Funding representative will go over with you.

How much cash will you give me for an invoice?
We pay you 70%-90% of the invoice amount right away. When we receive payment for the invoice, we send you the remaining 10%-30% less Universal Funding's service fee.

What will my clients think?
Selling your receivables to Universal Funding only changes the address to which your clients remit payment. Your clients don't need to pay faster, and the name on the check (your business) stays the same.

I have clients all over the U.S. Are there any restrictions?
No. We can work with any business or government agency in the United States.

How does Universal Funding receive payment?
The same way you do. We deliver your invoice and Authorization Letter to your client once services have been rendered or your product has been delivered.

What if my client does not pay?
Universal Funding does not require a personal guaranty of collection. If your client's business goes bankrupt and payment is not remitted, Universal Funding assumes the loss of funds that we advanced to you. If payment is not remitted due to a dispute with you, we will work with you to reclaim funds.

Factoring (selling your receivables) is a common business practice.

From your clients' perspective, your company is probably not the first to utilize this source of cash. They understand that your business is growing and that you need cash to fuel that growth.