Invoice Factoring - Alternative to Traditional Bank Loan

Invoice factoring is a nancingsolution to help companies stabilizecash flow and unlock stalled potential.

Some reasons for using the factoring product:

Also known as accounts receivablefactoring, this process involves treatinginvoices as collateral, which are sold to

factoring companies—giving yourcompany a cash advance.

As long as you have invoices tofactor, your company has

unlimited possibilities!

High growth

lack of capital

high debt leverage

payroll taxproblems

not being able tomeet your payableswithin their terms

The factoring process is quick andeasy with funds provided within24-48 hours on approved invoices.

The initial setup averages 5-10 daysfrom receipt of the factoringapplication and supportingdocumentation.

That’s lightening fastcompared to the weeks andmonths it takes most banks todecide on business loans!

Since factoring is not a loan itdoesn’t add to the liabilities onyour balance sheet. That meansno monthly loan payments and

a clean balance sheet!1 2

There are no long term contracts,minimums, or maximums with manyof today’s factoring programs.

Pick and choose how often and whatinvoices you want to factor.

Factoring is designed togrow with you so as salesincrease so does youraccess to funding!

The cost of factoring invoices hascome way down over the years withadvances available up to 95% andfees as low as 1.5%. The fees vary by industry, volume andnumber of invoices, advance rates,customer creditworthiness, and howlong it takes customers to pay.

To find out exactly whatprograms are available foryour business please use ouryour business please use our3 4

You need cash, not a boss!Factoring companies don’t dictatehow you spend the funds.

There are no requirementsto buy equipment or otherassets

No more waiting on your customersto make payments so you can makeyours.

Pay bills, meet payroll, andremit taxes on time withoutworrying about late fees ordamaged credit.5 6

Many companies use factoring toincrease profit or fund growth.Take advantage of early paymentdiscounts, negotiate bulk discountsfrom suppliers, increase inventory forlarge orders, or add the staff andoverhead required to fund expansion.

When structured thoughtfully it is possible to use factoring to either save or make money far in excessof the factoring costs.

You don’t need great credit, years inbusiness, or a long strong nancialhistory to qualify for factoring services.

The factoring company looks to thestrength of your customers paying onthe invoices, rather than you.

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.7 8

Increase sales with the ability to offer credit terms to new or largecustomers without hurting cash flow!

Plus the factoring companywill help you underwrite yournew or existing customersability to pay so you canavoid extending terms tohigh risk candidates.

Save time, reduce in-houseexpenses, and improve the turn timeon your receivables withprofessional management.

Factoring companies will skillfully handle the paperwork, processing,headaches, and collection of payments on your invoices9 10

Accounts receivable factoring and bank loans are both excellent source of funds for acompany 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.

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.

Factored funds can be available much quicker than bank loans, usually in days.

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.

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).

www.ucfunding.com