![]() Your profitability soars as you witness the seamless flow of funds, enabling you to produce not just two, but multiple golf carts simultaneously. Now, instead of turning your money every 45 days, you have the means to swiftly build and sell golf carts on a continuous basis. This newfound financial freedom empowers you to accelerate your production capabilities. Instead of waiting for 30, 60, or even 90 days to receive payment, you can access a significant portion of the invoice value upfront. With invoice factoring, you can unlock a consistent cash flow by leveraging the value of your outstanding invoices. Imagine breaking free from the chains of extended payment cycles, enabling you to rapidly reinvest your hard-earned profits into your business. The reality sinks in that operating at this pace limits your ability to grow and expand your business.īy embracing the transformative power of invoice factoring, a world of possibilities opens up before you. The accumulated profit at this point stands at $6,000-a considerable improvement, but still falling short of your aspirations. Now, a total of 90 days has passed, and you’ve only managed to produce and sell two golf carts. As you eagerly await payment for the second golf cart, another 30 days seem to drag by. However, the journey to financial prosperity is not without its challenges. It’s a modest success, but you quickly realize that building two carts at once is the key to maximizing your potential. After deducting the production costs for the second golf cart, which amounts to $7,000 and takes an additional 15 days of labor, you find yourself with a $3,000 profit. These 45 days, laden with anticipation, serve as a bridge to cover the costs of producing another golf cart.įinally, the payment for the first golf cart arrives, and you can breathe a sigh of relief. ![]() As a result, you find yourself waiting anxiously for 45 long days before receiving any compensation. However, there’s a catch: they need 30 days to settle the payment. You strike a deal with a customer who agrees to pay a handsome sum of $10,000 for this marvel on wheels. Imagine that it costs you $7,000 and 15 days of hard work to produce a single golf cart, meticulously crafting it to perfection. At day 30, you would only incur a manageable expense of $150, and if you decide to extend your payment window to day 60, you’ll find yourself saving a remarkable 50% compared to the weekly rate, as your cost would be a mere $300.Īllow us to paint a vivid picture of the financial journey in the custom golf cart business. As the days tick by, the costs tell a drastically different story. Suppose you agree to a modest 1.5% rate for that same $10,000 invoice. Let’s explore how this can significantly impact your bottom line. We offer a refreshing approach with our monthly factoring rate. These numbers can be quite alarming, especially when compared to the true alternative.Įnter Universal Funding, where we believe in providing transparency and fair terms. By day 30, you would be paying a staggering $400, and if you dare wait until day 60 to settle your dues, be prepared to fork out a whopping $800. ![]() Initially, it may seem like a reasonable cost, but the truth reveals itself over time. Imagine factoring a $10,000 invoice at that alluring weekly 1% rate. To put things into perspective, let’s delve into a practical scenario. As you embark on your journey to find the perfect factoring company, make sure to dig deep into their terms and inquire about the real costs. And if you dare extend your payment terms to net 60 days, brace yourself for an exorbitant 8% rate. So, when considering a net 30-day payment, that initial rate quickly balloons to a hefty 4%. What they fail to mention is that this rate is charged weekly, compounding by an additional 1% every week. Beware, for this seemingly low rate is not as it appears. However, it’s crucial to peel back the layers and uncover the truth behind these enticing offers. In the vast realm of Fintech companies, some may entice you with seemingly attractive 1% rates.
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