Payroll Funding vs. Factoring

It is normal for staffing firms to have cash flow shortages during times of growth as they deal with different pay cycles. In an effort to fund their growth many staffing firms look for alternative financing. The two most frequently used alternatives are Payroll Funding and Factoring. Although Payroll Funding is a good option for some staffing firms, Factoring is much more flexible.

For Example:

With Payroll Funding, only the payroll portion of the invoice is funded. Whereas with Factoring, the entire invoice is funded and the staffing firm may use the funds for any purpose including payroll, marketing, expanding, etc... Similarly, with Payroll Funding the staffing firm must submit all time cards while the funding Company takes over invoices, payroll and tax processing. With Factoring, the Staffing firm has total control over which invoices they submit and maintains management of payroll, insurance, etc… if they do not want back office help.

Additional Benefits of Factoring include:

Stimulating Growth:

• Provides immediate access to working capital
• Shifts manpower from collection to marketing for growth
• Meets payroll efficiently and consistently

Reducing Expenses:

• Eliminates bad debt with credit guarantees
• Reduces collection and administrative expenses

Improving Finances:

• Meets regular payroll obligations
• Gets payroll taxes current
• Reaches a higher quality customer base

If you would like to know if Factoring will help your Temporary Staffing Firm please visit http://universalfundingmain.com/defaultstaffing.html

Or call 1-800-901-2418 for immediate assistance.

Financial Solutions For Manufacturers

In the ever changing global economy, manufacturers are finding themselves strapped for cash by the demanding terms of their customers. As competition increases, so do the terms by which they compete. For small to mid-sized manufacturers long contract terms, from 30 to 90 days can be the one barrier restraining their growth. For businesses in this situation, there is a great alternative called factoring. Factoring is the simple buy-sell process of accounts receivables. The factor purchases the manufacturers invoices and the manufacturer gets immediate cash advances. Thus, the increased cash flow helps stimulate the growth the manufacturer needs to compete.

With over 30 years combined experience factoring for the manufacturing industry, Universal Funding has become an expert at helping manufacturers improve their cash flow position. Tell us your goals and we will tailor a funding program specifically for your needs. www.univeralfundingmain.com

Link: MaterialSeek - Directory for the materials industry.

Factoring vs. Traditional Bank Financing

When business owners need funding for growth there are not always a lot of options available. Traditionally, you go to a bank with your business plan and credit history in tow and wait for the bank to help you out. It often takes a very long time from the day you apply to the day you receive your money. And if you are like most people, the odds of qualifying are pretty low due to the stringent regulations of the Banking Industry.

But for those who do receive a line of credit from a bank, it may not always be the best plan for growth. If your company is a start-up or small to mid-sized and growing quickly, there is a good chance that the credit limit the bank extends to you will ultimately stunt your company’s growth.

You see, the limited line of capital can easily be maxed-out by growing companies. And where does that leave you? It leaves you with a large debt and no way to nurture your growing company.

This is where factoring is different. With factoring there is no credit limit and it is not considered a form of debt on your balance sheet. The more account receivables you get, the more cash you can have access to. So as your company grows so does your line of credit, which continuously fuels your company’s growth.

Factoring is also different in that there are no stringent regulations or lengthy approval processes. You can typically have your money within 24 hours and there is no need for a business plan or to review your personal credit history. If you have accounts receivables and customers with established credit then factoring will work for your business. You see, it is your customers who are paying the factor so it is their credit-worthiness that matters.

So, although there are not always financial solutions for every business owner, factoring can potentially be the best if managed as a tool for growth.

If you would like to see if we can help your business grow please visit us at www.universalfundingmain.com and fill out an online application.

Why Cash Flow is so Important

Business is essentially about trade, the exchange of value between parties, and cash is the asset needed for participation in that trade. Because of this, no business can survive without maintaining positive cash flow. To have positive cash flow, cash inflows need to exceed cash outflows.

A cash outflow occurs when a company transfers funds to another party. Such a transfer could be made to pay for employees, suppliers, creditors, etc... A cash inflow is any transfer of money that comes into the company's possession. The majority of a company's cash inflows are from customers, lenders, investors, etc…

Ultimately, without cash flow, a business does not have the resources it needs to fund its growth. If your business is in need of cash flow and has accounts receivables, Universal Funding can help! Please visit www.universalfundingmain.com or call 1-800-901-2418 for immediate assistance.

The Benefits of Factoring

With competition on the rise many businesses are finding themselves cash poor due to the demanding terms of their customers. However, there is an alternative financial solution called Factoring that allows your business to be more competitive while improving your cash flow, credit rating, and supplier discounts.

Factoring is a simple buy-sell process. You sell your invoices to a Factor and the Factor gives you cash for an agreed discount. Unlike traditional bank financing, Factoring relies on the credit-worthiness of your customers, not you. Some of the great benefits to Factoring are as follows:

Improve Cash Flow without adding debt:

• Receive cash for your outstanding invoices
• Meet tax requirements on time
• Purchase capital equipment
• Market for additional business
• Utilize increased cash flow to increase market share
• Pay your suppliers faster and take advantage of discounts

Improve Customer Credit Services:

• Reduce bad debt
• Streamline credit approvals for new customers
• Improve decision-making on new business
• Reduce administration costs
• Accounts Receivable Management

Take Advantage of the Flexibility

• Factor as much as your want or as little as you want.
• There are no minimums and no maximums in the amount you can factor.
• Funding is based on the financial strength of your customers.

To see if Factoring will benefit you please visit www.universalfundingmain.com Or call 800-901-2418 for immediate service.

Turn Your Invoices Into Cash!

If you have business to business accounts receivables and need to increase your cash flow, Universal Funding can help!

How Universal Funding Helps…

At Universal Funding our goal is to support your cash flow position and growth by offering funding solutions that can turn your accounts receivables into immediate cash.

With over 30 years of combined experience, Universal Funding has specialized in Factoring, also known as, accounts receivable financing, accounts receivable factoring and accounts receivable funding. Factoring is a simple buy-sell process. Put simply, you sell Universal Funding your invoices and Universal Funding gives you cash upfront for an agreed discount.

Who Universal Funding Helps…

Universal Funding provides cash flow solutions to businesses in most industry sectors ranging from start ups to established organizations. The only requirement is that your organization has business to business accounts receivables.

However, specific industries Universal Funding helps include; Staffing, Transportation and Manufacturing.

So no matter what you desire; Stimulating Growth, Payroll Assistance, Financial Help, Cash Flow Management, etc... Universal Funding will help!

How to Get Started…
Please visit www.universalfundingmain.com and fill out an application. Or call 1-800-781-3978 for immediate assistance. Questions or comments please feel free to contact me at darcy@universalfunding.com

Can Universal Funding Help You?

As there are different types of receivables, who Universal Funding can help is sometimes confusing to our customers. To clarify, there are two main types of receivables; consumer and business.

The first, consumer receivables, means that the debtor is a consumer. This would include any business that sells, leases or finances products/services to consumers. For example, a music store owner who leases instruments to people.

The second, accounts receivables, means that the debtor is a business. This would include any business that sells, leases or finances products/services to business accounts. For example, a shipping company that transports goods cross country for Wal-Mart.

There are Factoring companies that specialize in consumer receivables and there are Factoring companies that specialize in Accounts Receivable. So depending on your business and your needs you could need one or both.

So, now that we have the basics down, Universal Funding helps businesses who have business accounts receivables... But that is about our only limiting criteria. Universal Funding can help… staffing, transportation, manufacturing or any other accounts receivable based business… new or long standing business owners… as well as businesses in need of expanding, accounts receivable management, cash flow management or just a little financial help...

To get set up with a new line of credit please visit www.universalfundingmain.com to fill out an application or call to speak with someone immediately 1-800-781-3978

How to Create Invoices that Speed Up Payment

In this article we will help you determine what creates action and inaction in your customer’s pay behavior as well as give you tips to create invoices that speed up your customer’s payments.

First, review your current invoice statements. Many people rarely take the time to examine what they are saying to their customers. Does your invoice say “Payable upon receipt?” or does it list the age of the account, "current, 30 days, 60 days, 90 days and over 90 days?”

These are both very common statements on bills, but what are they really saying to your customers? “Payable upon receipt” says “Pay when it's convenient.” And listing the age of the over due account says “We are a creditor.”

Instead of sending invoices that encourage inaction alter your verbiage and speed up your customer’s slow pay behavior by using the following tips:

• List a due date on all of your invoices: "Due on January 31, 2007.” People are much more likely to pay attention to a specific payment date, and you eliminate the possibility of any misunderstanding.
• Offer an incentive to pay on time. Many businesses, offer a discount for paying within 10 days of an invoice date. Note: 2% is typical for payments within ten days.

Using invoices that list a due date and offering incentives for fast payment promotes action and frees up your cash flow so you can continue to grow and care for your business.

If you find yourself in a situation where none of these options can help and you need immediate cash, please visit us at www.universalfundingmain.com or call for immediate assistance 1-800-781-3978.

Financial Solutions for Your Growing Business

Time and again small to mid-sized business owners need to increase their cash flow to nurture their growing business. However, most banks can not help them without significant collateral and a history of successful operations. If you have found yourself in this situation, do not fret, there is a solution.

The Solution: Invoice Factoring

Invoice factoring is ideal for business owners who cannot wait the typical 30 to 90 days to be paid by their customers. It allows a business to sell its invoices from commercial customers to a Factor for immediate payment. The Factoring Company buys the invoices at a discount and waits for the customer to pay.

The Benefits of Factoring:

• The Factoring Company makes its lending decisions based on the creditworthiness of your customers.
• There are no limits on your line of credit... it is limited only by the amount you sell to your creditworthy clients.
• Virtually any B2B business in any industry can use Factoring as long as it has accounts receivables.
• You get the money you need to cultivate your growing business.

If you are a business owner in need of cash flow and have accounts receivables… Universal Funding Can Help! Please visit us online at www.universalfundingmain.com or call to speak with a Factoring Specialist: 1-800-901-2418

The History of Factoring

It is believed by historians that Factoring originated over 4,000 years ago in the days of King Hammurabi of Mesopotamia. Mesopotamia, which is now occupied by Iraq, eastern Syria, southeastern Turkey, and Southwest Iran, has been called the "cradle of civilization," as it was here that the first literate societies developed. Although Mesopotamia no longer exists many of its great contributions to civilization have endured, including Factoring.

Factoring was then passed along from civilization to civilization until its widespread use in the American colonies. During this time trade was the main source of income for colonists. With the abundance of the North American landscape, colonists cultivated and traded commodities like cotton, fur and timber with the Europeans. Merchant bankers in Europe advanced funds to the colonists for the raw materials. This enabled the colonists to continue to live and work, free from the burden of receivables by their customers.

With the arrival of the Industrial Revolution, Factoring evolved and became more focused on the issue of credit. By helping clients to determine the creditworthiness of their customers and establishing credit limits, factors were able to guarantee payment for approved customers.

Then in the 60’s and 70’s many private factors developed as interest rates rose to new heights. This trend continued to grow in the 80's, primarily due to increasing interest rates and changes in the banking industry. As banks became more expensive and inflexible due to heavy regulations business owners were forced to find other sources of financing.

Today, hundreds of thousands of businesses sell their accounts receivables to increase their cash flow on a daily basis.

If you would like to see if Factoring can benefit your business please visit us at http://www.universalfundingmain.com or for immediate assistance call: 1-800-781-3978

How to Shorten Your Cash Flow Conversions

Cash Flow Conversions are like the ocean tide. They are the ebb and flow of your business’ capital. They come in from customers and go out to bills. But unlike the tide, most business owners can not depend on the timing of Cash Flow Conversions.

More often than not, business owner's receivables and payables are out of sync, leaving them short on cash. This cash shortage is called a cash flow gap. For small and mid-sized businesses a cash flow gap can be extremely damaging. So in this article I would like to give you a few tips that may help you shorten your Cash Flow Conversions.

First, perform a Cash Flow Analysis (see “How to Perform a Cash Flow Analysis”) and if you are battling cash flow gaps try the following:

1. Prepare and present an invoice to your customers when you deliver your goods/service instead of mailing it later.
2. Offer a discount to early paying customers, i.e. 3% if they pay in 15 days.
3. Track over-due accounts and send them to collections.
4. Or if you prefer not to handle your cash flow management hire a Factoring Company who will purchase your invoices giving you cash upfront and will also perform all of your businesses cash flow management responsibilities.

So there you have it! Just remember, be proactive not reactive! If you monitor your cash flow and use these tips to shorten your cash flow conversion period you will out smart those horrific cash flow gaps!

If you are interested in learning more about Factoring or would like to see if we can help you with your cash flow management please visit: www.universalfundingmain.com or call 1-800-781-3978

Managing Your Business' Cash Flow

Cash Flow Management: It is the process of reviewing and revising cash flow streams to ensure your business' vitality. Businesses who do not perform Cash Flow Management often find themselves scrambling to pay bills while waiting on receivables. To avoid shortages between receivables and payables you must:

A. Perform a Cash Flow Analysis (see previous Blog.)

B. Develop and implement strategies that will maintain the appropriate cash flow for your business.

Strategies: There are many strategies to improve cash flow. One strategy is to shorten your cash flow exchange so that your business can bring in money faster. However, if this is not an option another strategy is Factoring. Factoring is the process of selling invoices for immediate cash flow. However, whatever strategy you choose, Cash Flow Management can be the tool to ensuring your business' stability and growth.

For more information on Factoring please visit: www.universalfundingmain.com

How to Perform a Cash Flow Analysis

Cash... it flows through your company like the blood in your veins. It is the lifeline of your business. And when it’s low will impact your company’s vitality. So performing a cash flow analysis is about as important as a yearly visit to your doctor.

Ready for a Check-Up?
First, compare your unpaid purchases to your invoices due at the end of the month. If your unpaid purchases are greater than your invoices due, you spent more cash than you will receive next month.

Low Cash Flow Diagnosis?
Second, examine the areas that affect your cash flow stamina. Review your inventory, accounts receivable, accounts payable, and credit terms. Identify the problem and you can take steps to correcting it. For example, if your cash flow problem is accounts receivable, identify why. Is it because of slow paying customers or long contract terms? Then find a solution. One option is to use a Factor. A Factor purchases your invoices, gives you immediate cash and waits to receive payment from your debtor.

There are many solutions to stimulate cash flow but the key is to be prepared. Review your finances every month. Change policies or procedures that hinder your cash flow vigor. And most importantly, use cash flow analysis as a tool for the preemptive care of your businesses long term health.

Need a Cure?
To find out if Factoring is the tool to stimulate your cash flow lifeline please visit www.universalfundingmain.com Or For immediate assistance please call: 1-800-781-3978

What is Factoring?

It is no surprise that when I tell people I work for a Factoring Company, the first thing they ask is “What is Factoring?”

Factoring as defined by Wikipedia.org, “is a form of commercial finance whereby a business sells its accounts receivable (in the form of invoices) at a discount." "It is considered off balance sheet financing in that it is not a debt or equity."

The Benefits:
1. It is more attainable than traditional bank and equity financing.
2. Businesses get help from the acceleration of cash flow.

Put simply, business owners sell their invoices for cash advances to stimulate their cash flow.

And as we all know, cash flow is good!

If you would like to see if Universal Funding Corporation can help you please visit:

www.universalfundingmain.com

For Immediate Assistance Call: 1-800-781-3978