Spokane, WA -- (SBWIRE) -- 03/04/2014 -- We all know the economy has struggled for the better part of a decade. The competitive landscape probably looks very different than it did in 2008. With bank loans being scarce, many companies began offering terms to customers and waited longer to receive payments. These two elements have put many small and medium-sized operations out of business.
During this time, factoring companies, including Universal Funding Corporation, have filled the financing void for businesses of all sizes. Accounts receivable financing can bridge the gap in a slow economy and provide relief to the cash flow conundrum. Some may ask if invoice factoring still has a place when the economy is on the rebound. Recent analysis conducted by Universal Funding of their 2013 Q3 and Q4 market trends seems to suggest that invoice factoring may become even more popular through the growing second half of this decade and 2014 Q1 seems to suggest this is the case.
In the recent survival years of this decade, struggling companies have turned to invoice factoring to shore up their cash flow problems. “What we’re now seeing is more and more companies turning to invoice factoring to shore up their cash flow problems as a result of booming rapid growth,” says Universal Funding’s CEO, Henry Wozow.
As it turns out, factoring might be more beneficial when the economy is growing than when it is receding or stagnant. One of the benefits of invoice factoring is the opportunity to grow a business. This is possible because factoring makes cash turn over faster, meaning a business has the ability to take on more orders, purchase more supplies and hire more employees.
For example, a manufacturing company in a slow economy might factor its invoices to make up for extended terms offered to customers and to ensure they can pay suppliers and employees on time.
In a growing economy, that same company might experience an increase in orders but not have the cash available to produce and fill them. Invoice factoring helps businesses free up capital to fulfill those incoming orders, allowing the business to grow immediately alongside demand, rather than limiting growth while waiting for invoices to be paid.
Typically when a growing company is in need of financing, there is a sense of urgency in regards to how quickly they can get access to capital and factoring companies are able to respond and approve with a swiftness that is atypical in the finance industry.
About Universal Funding
Universal Funding Corporation is a privately-held factoring company providing companies with working capital to stabilize cash flow and foster growth. Since 1998, Universal Funding has been financing receivables and developing personalized solutions by looking at an individual business, the climate of their industry, and the strength of their customers. We are committed to our clients and are able to offer scalable programs that grow as their business grows. We’ve assembled a dynamic team of specialists who strive to provide excellent service every day and you will experience first-hand that we value the quality of our business relationship far more than the quantity of business we do together. Based in Spokane, Washington, Universal Funding provides account receivable financing for companies throughout the United States.
Universal Funding Corporation
Heather Burford, Marketing Manager
16201 East Indiana Avenue, Suite 2600
Spokane, WA 99216