Factoring Company Introduces Small Business Stimulus Program

Spokane, WAIn response to increasing demand for business credit coupled with the sharp decline in thesupply of bank loans,Universal Funding Corporation is launching its own small business stimulus program. Offering its lowest rates to B2B companies in need of workingcapital, these factoring rates are at a record low, starting at 1%. Because the companyunderstands that small business will be the sector that rescues the economy from thisrecession, they are offering these discounted rates on their custom-designedinvoicefactoring programs.Accounts receivable factoring is not well known, but has been around for over 4,000years when it was first practiced by the ancient Mesopotamians. This alternative form of business finance is based upon the asset of accounts receivable and incurs no debt.

How it works

:1.You send the factor your unpaid customer invoices.2.The factor advances up to 90% of the invoice value to you.3.The factor receives payment from your customer.4.The factor recovers the amount advanced to you plus their rate.5.The factor rebates the difference to you.6.You send the factor more invoices and the cycle continues.

Consider this example

:Let's say you factor $100,000 of invoices every month for a year at 1.5% with 30 dayterms and an advance rate of 85%. The factor wires $85,000 into your account upfrontupon receipt of the invoice. Thirty days later, your customer pays the factor $100,000.The factor deducts $1,500 (1.5%) and pays you the balance of $13,500.Most people want to calculate the cost of factoring by multiplying 1.5% by 12 months(18% annual percentage rate). That's how banks operate, but the factoring rate iscalculated by multiplying $1,500 (1.5% of $100K) by 12 months. The factor's rate is$18,000, 1.5% of the annual invoices, which are $1.2 million.

Value-Added Services

Not only does Universal Funding provide immediate cash for your B2B invoices, butservices that are automatically included in your factoring program are:

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Accounts Receivable and Credit Management

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Collection and Merchant Account Services

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24/7 Live Customer Support

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Personalized Reporting by Your Dedicated Account Representative