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Many small and medium sized businesses may not be familiar with the term ‘factoring’. Big business has been using this little known financial instrument for decades, but only recently have some financial institutions begun offer Invoice Factoring to small and medium businesses.

Basically, a financial entity like Universal Funding Corporation funds your accounts receivable for a pre-determined rate. This is not a loan, and no debt is entered on your company’s balance sheet. The credit of your customers is the primary concern of the factoring company.

Factory solution, including receivables factoring is a fairly new phenomena in small business. They are just not used to the idea of AR funding. This type of system allows your cash flow to be much more fluid; instead of waiting 30 – 90 days for invoices to be paid, with accounts receivable factoring you get your money up front, for a small fee.

The rates are determined through a diverse set of variables; this will depend on volume of sales, the invoiced customer’s credit history and payment schedule with you. There are other factors involved with account factoring as well, but term rates are generally low.

Your factoring company will also set an advance rate – this is the amount of the invoice that you will have available immediately. Let’s say a company has $100,000 on 30 day terms, and the factoring firm has set an advance rate of 80% and a term of 1.5%. The factoring firm would act as your accounts receivable service, pay your company the $80,000 (80% of $100,000) and receive the customers check at the end of the 30 day period.

This allows your company to immediately move into the production of new orders and ensures a stable financial floor which you can use to maintain and speed up order fulfillment and perform critical maintenance so that production does not suffer needless and expensive delays. This type of account receivable factoring can make a huge difference in profit at the end of the year.

Receivables financing has been used by big business for a long time. Now, with firms like the Universal Funding Corporation, various businesses can now make use of this valuable cash flow tool. Custom business receivable Factoring Solutions for every client is the goal of Universal Funding Corporation. They have been working to deliver financial factoring accounts receivables solutions to business across the spectrum of business, and will develop a specific plan based on your business to give you the best business finance services in the marketplace.

Business funding companies like Universal Funding have helped hundreds of companies with capital funding and debt factoring, and there are other tools that can be brought to bear to make sure you have the money to expand and continue growing when you need it.

Litigation funding, also known as legal financing, is when a company is lent money to cover the costs of a legal case. Litigation funding specialists may be able to loan money to a company, depending on the strength of the legal case and several other factors. This article takes a look at the basics of litigation funding, its benefits, and how you can find a litigation funding specialist in your area.

Services

The primary purpose of litigation funding is to provide financing prior to a legal case. The loan can also be used to cover the payment of adverse cost orders. Litigation funding specialists will be able to manage, plan and monitor all stages of the legal case. Some litigation funding services will be heavily involved in the process, and they may be able to help facilitate settlements and maximize the value of each individual claim.

Benefits

Litigation funding is particularly beneficial for companies that have a very strong legal claim, but no money to fund it. The funding will help to diversify the financial risk that is associated with litigation. Litigation funding is also beneficial for companies who cannot provide the security for potential legal costs. As with any type of loan, you should ensure that the company has the payment means to cover the costs should the legal case no go in your favour.

Approaching A Litigation Specialist

A litigation funding claim is usually started by filling out a proposal form, followed by a telephone or face to face meeting. Any reputable litigation specialist will be able to provide you with comprehensive evaluation of your legal situation. They will study all of the case details, along with the companies financial credentials, to determine whether litigation funding is a viable and secure option based on the circumstances. If funding is available, then they will work closely with your company to ensure that the claim is managed correctly, and that the best possible outcomes are achieved.

The best place to search and find litigation specialists is online. All major companies will have a website which will display all of the services that they offer, along with their contact details. Simply open up your search engine and type in ‘litigation funding’ along with the town, city or state that you live in. You can then browse through the top results until you find a company that offers all of the services that you require. Be sure to pick a reputable and trusted company, so that you know you will be using a high quality service. The litigation specialists should have plenty of experience working in the field, and also be a member of all the appropriate financial bodies. As with any type of loan, be sure to check all of the details and small print, to ensure that you know exactly what the repayment terms are. A litigation specialist will be able to take a look at your claim and your company’s finances, and decide whether it is strong enough to be funded.