Universal Funding Corporation is a factoring service that provides highly competitive rates and solid customer support. This company has been in business since 1995 and provides services to a variety of business types, including startup, printing, publishing, staffing and trucking.
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Universal Funding Corporation Rates and Fees
Universal Funding Corporation offers one of the lowest fee rates out of all the factoring services we reviewed. At a minimum, it charges 0.55% of invoices. It also offers a high initial funding rate of 95%, which is more than many other factoring services on the market.
After you sell your invoice to Universal Funding Corporation, it will pay you 95% of the invoice upfront, usually within 24 hours. After it collects the invoice amount from your customer, it will fund you the rest of the invoice, minus its fees.
You cannot factor more than $5 million with this company inside of one month. This is in the median range of monthly ceilings in this industry and will work for most companies looking to factor their invoices. Universal Funding Corporation does not charge a startup fee, but there is a termination fee that you might need to watch out for if you cancel service.
A potential drawback of this company is that it only accepts accounts that are delinquent up to 45 days. This is on the low side of overdue days in this industry but might still work for you, depending on the type of overdue accounts receivable you are looking to sell. Universal Funding is a recourse factoring company, which means that if your customers do not pay the company, you will be required to buy back your invoice, which could hurt your cash flow.
Like many factoring services, Universal Funding does not consider your credit score during your application process. Rather, it evaluates the creditworthiness of your customers, as they are the ones paying the invoices. This can be a double-edged sword, as you don't necessarily know your customers' credit history.
Universal Funding does not consider how long you have been in business either, making it a good option for new companies. However, your business must earn at least $300,000 per year, which prevents smaller businesses from working with this factoring service.
Ease of Application
Once Universal Funding has received your application, which you can fill out and submit online, it can approve you within 24 hours, which is the average time it takes across the industry.
After your account is set up, you can usually receive funding within 24 hours of your invoice being purchased. Some companies only advance initial funds after several days, so Universal Funding has a decent turnaround time. There is no invoice or commitment minimum you need to fulfill in order to factor with this company, giving you the freedom to factor as you need.
This company offers a dedicated advisor to businesses that contract with it, meaning that you will have one point of contact to take care of your needs. It also provides telephone, live chat and email support.
We reached out to Universal Funding Corporation to test its customer service, and we had a positive experience. The people we spoke with were helpful, informative, and willing to give suggestions on how to get the best rates. They were also quick to respond to our inquiries.
Universal Funding Corporation has some drawbacks, such as that it only offers recourse factoring and only works with companies that earn over $300,000 a year. However, it has competitive rates and no commitment requirements, making it worth consideration for a factoring company.
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