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# Invoice Factoring Company Introduces Small Business Stimulus Program

(PRESS RELEASE – August 26, 2009) – In response to increasing demand for business credit coupled with the sharp decline in the supply of bank loans, Universal Funding Corporation is launching its own small business stimulus program.

Offering its lowest rates to B2B companies in need of working capital, these factoring rates are at a record low, starting at 1%. Because the company understands that small business will be the sector that rescues the economy from this recession, they are offering these discounted rates on their custom-designed invoice factoring programs.

Accounts receivable factoring is not well known, but has been around for over 4,000 years 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 invoice factoring works:

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

Consider this example of factoring:

“Here’s how invoice factoring works: Let’s say you factor a \$100,000 invoice every month for a year. The interest rate is 1.5% with 30 day terms and an advance rate of 85%. The factor wires \$85,000 into your account upfront upon 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,” says Deron Nicholson, Vice President of Universal Funding Corporation.

“Most people want to calculate the cost of A/R factoring by multiplying 1.5% by 12 months (18% annual percentage rate). That’s how banks operate. Universal Funding’s factoring rate is calculated by multiplying \$1,500 (1.5% of \$100K) by 12 months. The factoring rate is \$18,000, which is 1.5% of the annual invoices, or \$1.2 million.

“Because a client application can be approved in about two business days, we can wire funds within a few hours. I’ve seen small businesses all over the country increase their sales volume in the first quarter of factoring receivables with UFC,” adds Mr. Nicholson.

Not only does Universal Funding provide immediate cash for B2B invoices, but these services are automatically included in receivables factoring programs:

• Accounts Receivable and Credit Management
• Collection and Merchant Account Services