Invoice Factoring - Alternative to Traditional Bank Loan

2. Invoice factoring is a nancing solution to help companies stabilize cash flow and unlock stalled potential. Some reasons for using the factoring product:

3. Also known as accounts receivable factoring, this process involves treating invoices as collateral, which are sold to factoring companies—giving your company a cash advance. High growth lack of capital high debt leverage payroll tax problems As long as you have invoices to factor, your company has unlimited possibilities! not being able to meet your payables within their terms

4. The factoring process is quick and easy with funds provided within 24-48 hours on approved invoices. The initial setup averages 5-10 days from receipt of the factoring application and supporting documentation. 1 2 Since factoring is not a loan it doesn’t add to the liabilities on your balance sheet. That means no monthly loan payments and a clean balance sheet! That’s lightening fast compared to the weeks and months it takes most banks to decide on business loans!

5. The cost of factoring invoices has come way down over the years with advances available up to 95% and fees as low as 1.5%. There are no long term contracts, minimums, or maximums with many of today’s factoring programs. The fees vary by industry, volume and number of invoices, advance rates, customer creditworthiness, and how long it takes customers to pay. Pick and choose how often and what invoices you want to factor. 3 4 Factoring is designed to grow with you so as sales increase so does your access to funding! To find out exactly what programs are available for your business please use our your business please use our

6. No more waiting on your customers to make payments so you can make yours. You need cash, not a boss! Factoring companies don’t dictate how you spend the funds. 5 6 Pay bills, meet payroll, and remit taxes on time without worrying about late fees or damaged credit. There are no requirements to buy equipment or other assets

7. You don’t need great credit, years in business, or a long strong nancial history to qualify for factoring services. Many companies use factoring to increase profit or fund growth. Take advantage of early payment discounts, negotiate bulk discounts from suppliers, increase inventory for large orders, or add the staff and overhead required to fund expansion. The factoring company looks to the strength of your customers paying on the invoices, rather than you. 8 7 That is good news if your credit or business has hit a few bumps in the road as you try to build (or re-build) your business. When structured thoughtfully it is possible to use factoring to either save or make money far in excess of the factoring costs.

8. Increase sales with the ability to offer credit terms to new or large customers without hurting cash flow! Save time, reduce in-house expenses, and improve the turn time on your receivables with professional management. Plus the factoring company will help you underwrite your new or existing customers ability to pay so you can avoid extending terms to high risk candidates. Factoring companies will skillfully handle the paperwork, processing, headaches, and collection of payments on your invoices 9 10

9. Accounts receivable factoring and bank loans are both excellent source of funds for a company in need of cash, but there are major differences between them. With factoring, the emphasis (and scrutiny) is on your customers’ invoices, not on you. Factored funds can be available much quicker than bank loans, usually in days. Factoring provides a steady predictable flow of funds, bank loans are usually one lump sum. You don’t want to pay interest on funds you are not using.

10. Factoring rates are higher than bank rates, but factoring can provide opportunities that can compensate for that. Factoring can produce significant cost reductions, since Factors handle the credit and collection function. Factoring improves your balance sheet. Bank loans add debt, factoring just converts one asset (accounts receivable) to another (cash). Factors provide credit information on customers, banks do not. This allows you to be more selective when you sell.

12. Europe, the largest factoring market worldwide, was the strongest growing region in 2014 as the factoring volume increased by 9.8 per cent to $ 1,487 billion (2013: $ 1,354 billion).

16. www.ucfunding.com