Posted on May 29, 2014
Recently, Universal Funding, one of the country’s leading receivables factoring companies, announced a recent case study reviewing clients who used factoring services over 5 years ago.
It’s a common misconception that 9 out of 10 businesses fail in the first 5 years. Numbers provided by the Small Business Administration (SBA) and the U.S. Bureau of Labor Statistics show that in reality, only 50% of new businesses survive the first five years. Interestingly enough, these numbers haven’t changed much over the last fifty years.
Recently, Universal Funding, one of the country’s leading invoice factoring companies, announced a new case study where they could confirm 13 out of 20 of factoring customers were still in business five years after using their factoring services. This means a success rate of 65%; 15% above the national average. Only one business could be confirmed as going out of business. There were inconclusive results in determining whether six other companies were still in business, which could mean that the success rate is actually higher than what is reported.
Additionally, Universal Funding found that five plus years later, 41% of these businesses were still active factoring clients, which is rare in the factoring industry, as most factoring agreements run their course in 12-18 months. Most companies who use factoring use it as a short-term finance solution. However there are certain industries that require factoring as a long-term solution as their payment cycles are extremely extended.
According to Forbes Magazine, “The primary reason businesses fail is that they simply run out of cash.”
Some companies turn to a bank or credit cards and incur more debt in the process. Or they sell part of the business to a partner or venture capital group, but end up having to share the profits. The 15% increase in company survival is why invoice factoring is a growing alternative for businesses requiring financing.
Statistically speaking, invoice factoring can be a cash flow survival tool for both new and established businesses.
About Universal Funding:
Universal Funding Corporation is an independent receivables factoring company, providing businesses with working capital to stabilize cash flow and foster growth. Since 1998, Universal has been developing personalized invoice factoring finance programs for a variety of industries including the staffing, transportation, printing, and oilfield industries. Based in Spokane, Washington, Universal Funding provides accounts receivable financing for companies throughout the United States.
Media Contact
Company Name: Universal Funding Corporation
Contact Person: Heather Burford, Marketing Manager
Email: Send Email
Phone: 800-405-6035
Address:16201 East Indiana Avenue, Suite 2600
City: Spokane
State: WA
Country: United States
Website: http://UniversalFunding.com
Thursday, May 29, 2014
Affordable Bookkeeping Services: Certified QuickBooks ProAdvisor
Visit www.TiffanyAccounting.com for more information!
Offering professional, reliable, and affordable bookkeeping services for small businesses in NJ, DE and PA. Over 27 years of experience.
Our services include:
- Accounts payable: receiving & recording invoices, remittances, schedule & make payments.
- Accounts receivable: factoring, creating, recording & sending invoices, follow up on delinquent payments, receiving & deposits.
- Payroll: employee setup & maintenance, payroll setup & processing.
- Bank accounts reconciliation: banks, credit & loans, investments, inventory.
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Telephone: 856-803-4651
Located in Voorhees, New Jersey
Intuit QuickBooks Profile: http://proadvisor.intuit.com/quickbooks-help/kathryn-tiffany
Web: http://www.TiffanyAccounting.com
Member of the American Institute of Professional Bookkeepers, National Association of Certified Public Bookkeepers, Intuit QuickBooks Advisor Program, Association of Certified Fraud Examiners, Voorhees Business Association, and Chamber of Commerce.
Offering professional, reliable, and affordable bookkeeping services for small businesses in NJ, DE and PA. Over 27 years of experience.
Our services include:
- Accounts payable: receiving & recording invoices, remittances, schedule & make payments.
- Accounts receivable: factoring, creating, recording & sending invoices, follow up on delinquent payments, receiving & deposits.
- Payroll: employee setup & maintenance, payroll setup & processing.
- Bank accounts reconciliation: banks, credit & loans, investments, inventory.
- Reports: monthly, quarterly and yearly reporting, balance sheet, profit & loss, cash flow, trial balance, consolidated.
- QuickBooks setup, training, cleanup, support
- Year-end: annual review, preparing year end documents & financials.
- Support Accounting software installation & set-up.
Visit www.TiffanyAccounting.com for more information!
Services tailored specifically to your needs. Save money by hiring an independent contractor. Pay for only the time you need and get high quality work. References available; licensed, insured and bonded.
Kathryn C. Tiffany, LLC
Telephone: 856-803-4651
Located in Voorhees, New Jersey
Intuit QuickBooks Profile: http://proadvisor.intuit.com/quickbooks-help/kathryn-tiffany
Web: http://www.TiffanyAccounting.com
Member of the American Institute of Professional Bookkeepers, National Association of Certified Public Bookkeepers, Intuit QuickBooks Advisor Program, Association of Certified Fraud Examiners, Voorhees Business Association, and Chamber of Commerce.
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