Universal Funding Corporation provides direct private funding sources to thousands of businesses through invoice factoring. It has funded more than $2 billion since 1998, with factoring rates that range between 0.55% and 2%. It’s best for companies with creditworthy customers that consider selling unpaid invoices for immediate access to working capital.
Universal Funding Corporation Pros and Cons
Offers credit line up to $5 million per month
May charge additional fees
Focuses on your customer’s creditworthiness and not on the owner’s credit score
It will let your customers know that you have factored their invoices
Fast approval and funding
Who Universal Funding Corporation Is Best For
- Businesses with accounts receivable from creditworthy clients: Universal Funding Corporation is best for businesses that need immediate access to working capital while waiting for their customers to pay their invoices. It focuses more on the customers’ credit strength rather than the business owners’ credit scores.
Universal Funding Corporation Costs and Terms
$25,000 to $5 million per month
80% to 95% of your accounts receivable
Monthly Factoring Rate
0.55% to 2%
30, 60, or 90 days, depending on the invoice terms
Approval can be as quick as two business days and funding within a few hours after the account is set up and the invoices are received
Universal Funding Corporation offers credit lines of up to $5 million per month. The factoring company will typically advance from 80% to 95% of the accounts receivable, with factoring rates between 0.55% to 2% monthly. It also charges $35 for credit approvals, $50 for lockbox fee, and $30 for outgoing wire fees. Payment terms range from 30, 60, or 90 days, depending on the invoice terms. Approval and funding can be as soon as two days.
Do You Qualify for Universal Funding Corporation Financing?
Personal Credit Score
None specified, it focuses more on the creditworthiness of your customers
Time in Business
None specified, even businesses in the early stages may qualify
Because it’s the company’s customer who pays the invoice factoring, Universal Funding Corporation looks at the customer’s general creditworthiness rather than the owners’ credit scores. Even companies in their early stages may qualify for invoice factoring. While there is no specified annual revenue requirement, the company’s sales volume and the current climate of its industry are taken into consideration to determine the factoring rate.
Universal Funding Corporation Application Process
First, you should consult a factoring specialist by either calling the Universal Funding Corporation’s trunk line at (855) 851-7416 or completing a rate form on its website. You will then receive the one-page application form through email, which you should fill out and send back. A factoring specialist will email a proposal with the lowest factoring rate it can offer.
Once you are approved, you can submit invoices to your dedicated account representative who will be your main point of contact for every transaction. Invoices can be submitted via email, fax, mail, or FedEx. You will receive your funds in your account after a few hours. You can track the entire transaction anytime by logging into your account online.
Universal Funding Corporation Alternatives 2020
Invoice Factoring Companies
(Best overall) Self-service, next-day factoring with no limit
Quick invoice factoring up to $5 million
Nonrecourse factoring up to $10 million
Monthly contract factoring up to $20 million
Short-term invoice factoring up to $5 million
Freight factoring up to $20 million
What Business Owners Should Know About Universal Funding Corporation
- Universal Funding Corporation offers invoice factoring: Universal Funding Corporation offers invoice factoring, which is not a loan. Therefore, no debt is entered on your company’s balance sheet.
- It is not a collection agency: While Universal Funding Corporation will let your customers know that their invoices have been factored, you can trust that it will never harass your customers. It will communicate with your customers respectfully to maintain your customer relationships.
Most Helpful Universal Funding Corporation Reviews
Most Universal Funding Corporation reviews available online consist of both positive and negative ratings. Customers who left positive reviews are happy with the company’s great customer service, good communication, and fast funding. However, clients who left negative ratings are disappointed because of the costs associated with their services.
Great service and fast funding
A client who left a positive review on Trustpilot is happy because Universal Funding provided him with great service. He said that he received his funds immediately as promised. He mentioned that Universal Funding has helped him take his business to the next level.
The actual cost is high
A customer who left a negative review on Trustpilot is disappointed because he feels that the actual cost is high. He said that the term sheet Universal Funding Corporation sent to him stated he would pay a 1.52% factoring fee. According to him, Universal Funding failed to mention that it would also charge an additional 1.52% processing fee.
Universal Funding Corporation Frequently Asked Questions (FAQs)
Every funding situation is unique, and small business owners should seek out answers before selecting a lender. We’ve gathered some of the most FAQs about Universal Funding Corporation below and answered them.
How are the rates determined?
Universal Funding Corporation takes into consideration many variables to determine your factoring rate. This includes your sales volume, your customers’ credit strength, trends in customer payment cycles, invoice amounts, and the current climate of your industry.
What if a lender already has rights to my accounts receivable as collateral?
Universal Funding Corporation has many years of experience working with other financial institutions. In most cases, it will arrange a subordination agreement or negotiate the release of any liens that may be encumbering your receivables.
What if my customer doesn’t pay their invoice?
You have a couple of options if an invoice is unpaid beyond 90 days. You can either swap out that invoice in exchange for a new one, or you can buy it back.
Universal Funding Corporation is best for startups and small business owners who have outstanding invoices with creditworthy customers. It helps businesses get access to working capital through invoice factoring. You should keep in mind that Universal Funding Corporation will contact your customers once you factor their invoices.
If you aren’t sure if Universal Funding Corporation is right for you, then this article on the best factoring companies is a review of our top choices. In this guide, we compared the top providers of invoice factoring according to their terms, costs, and qualifications.