Universal Funding Corporation Review: Invoice Factoring Services
Universal Funding Corporation might be a good fit for your small business with its competitive terms and fees, but be aware of its long-term contract.
- Suited for small business
- Relaxed borrower qualifications
- No credit score requirements
- Competitive terms and fees
- Unsuited for B2C businesses
- Some additional fees
Universal Funding Corporation Overview
Universal Funding Corporation (UFC) is a business funder that offers invoice factoring to qualified merchants. The company works with B2B businesses in a number of industries, including business service providers, manufacturing and fabrication, wholesale and distributing, staffing, trucking, and others.
Universal Funding Corporation certainly offers a tempting service with low discount rates. However, the service will not work for all businesses. Because you have to sign a long-term contract and will be responsible for monthly minimums and additional fees, UFC is not for businesses that only need to factor the occasional invoice. Are Universal Funding Corporation’s invoice factoring services right for your business? Keep reading to find out!
Table of Contents
- Services Offered By Universal Funding Corporation
- UFC’s Borrower Qualifications
- Universal Funding Corporation’s Terms & Fees
- Universal Funding Corporation’s Application Process
- Sales & Advertising Transparency
- Customer Service & Technical Support
- Universal Funding Corporation User Reviews
- Is Universal Funding Corporation The Right Factor For You?
Services Offered By Universal Funding Corporation
The primary service Universal Funding Corporation offers is invoice factoring. With this type of financing, businesses sell their unpaid invoices to a factoring company to receive most of the unpaid invoice’s amount upfront. Once your client pays their invoice, you’ll receive the rest of the invoice amount, minus a fee (or fees) taken out by the factoring company.
Universal Funding Corporation also offers a few other types of financing types, though the company doesn’t include much information on these services on the website. Other available financing services include accounts receivable financing, purchase order financing, payroll funding, A/R insurance, loan workouts, and tax lien resolution.
UFC’s Borrower Qualifications
To qualify for Universal Funding Corporation’s services, your business must meet these requirements:
|Time in business:||N/A|
|Business revenue:||$300,000 per year|
Universal Funding Corporation does not have specific requirements regarding your time in business or credit score. However, you must make at least $300K/year to qualify for these services.
The company works with businesses in most industries but does not normally work with those in medical insurance or construction contracting industries.
Universal Funding Corporation’s Terms & Fees
These are the terms and fees for Universal Funding Corporation’s services:
|Credit facility size:||$25,000 – $5 million per month|
|Discount rate:||0.55% – 2%/mo (first 30 days)|
|Max overdue account:||Average of 60 days
Maximum 75 days
|Additional fees:||$30 outgoing wire fee,
$35 credit approval fee, $50 lock box fee
|Contract length:||12 – 24 months|
|Factor all invoices:||No|
|Recourse or non-recourse:||Recourse|
|Notification or non-notification:||Notification|
With fees ranging from 0.55% – 2% per month, Universal Funding Corporation offers some of the lowest discount rates that we’ve seen.
However, in exchange, Universal Funding Corporation charges fees that may not be charged by other invoice factors (who, instead, roll the fees into their factoring charges). Although fees will vary by business and situation, you may have to pay fees including:
- Outgoing wire fees
- Credit approval fees
- Cancellation fee
- Lockbox fees
You will not, however, have to pay these fees:
- Overadvance fees
- Same-day funding fees
- Early wire fees
Because you will have to pay additional fees and because UFC does have monthly minimums, this service will work best for businesses that need to consistently factor a lot of invoices. If you only want to factor the occasional invoice, you may want to look at some other factors.
Universal Funding Corporation’s Application Process
Universal Funding Corporation provides a thorough rundown of the application process on its website.
You kick off the application by filling out a short form. Afterward, you will be put in touch with a representative from the company. You can also skip the form and give Universal Funding Corporation a call. Regardless of which route you choose, the representative will take some time to learn about your business and evaluate whether or not you’d be a good fit for this product.
If you are a good fit, the next step is to fill out a full online application. According to FAQ, you’ll be required to supply this information:
- Your most recent accounts receivable
- Accounts payable aging reports
- Articles of Incorporation or dba filing
- A sample invoice
When you have submitted the application, the company will go over it, verify your information, and make a decision about what terms and fees it can offer.
Once you’ve accepted the offer, you can begin sending your invoices to be factored.
Sales & Advertising Transparency
Universal Funding Corporation provides a fair amount of useful information on its website that will help merchants evaluate their options and decide if UFC is a good fit. Customer service is transparent and informative without being pushy.
Customer Service & Technical Support
Customer service is available via phone, email, or live chat. The website also has an FAQ, which may be helpful for answering basic questions.
Customers appear happy with the service, claiming that UFC’s representatives are responsive and helpful. In my experience, the staff was easy to get a hold of and willing to answer questions about the service.
Regarding how Universal Funding Corporation will interact with your customers, the company has this to say:
The last thing we want is for you to lose a customer. We are not a collection agency, so we will never harass your customers. Maintaining your customer relationships is of utmost importance to us. We only succeed if you succeed.
The company has not received any complaints regarding interactions with its client’s customers.
Universal Funding Corporation User Reviews
Negative Reviews & Complaints
Overall, Universal Funding Corporation fares well in the reviews department. The company is accredited with the Better Business Bureau with an A+ rating and one (very old) complaint. It also has an 4.7/5 star rating out of 42 reviews on Trustpilot.
The negative reviews on the BBB and TrustPilot sites appear to all be one-off situations involving problematic clients and do not appear to present a pattern of poor behavior on the part of Universal Funding Corporation.
(It is worth noting that there have been problems with scam operations. If you have spoken to a company using a name similar to Universal Funding Corporation but which is offering services or prizes unrelated to invoice factoring, it is likely a scam.)
While there are no glaring red flags here, no company is perfect. Here are some reasons Universal Funding Corporation may not work for your business:
- Long-term contracts: The company requires that you sign a contract between one and two years in length. If you do not want to be locked into a long-term contract, you may want to consider other factors.
- Monthly minimums: This company requires that you factor a specific amount of invoices per month (the minimum will vary depending on the business).
- Additional fees: Universal Funding Corporation charges additional fees, whereas some of its competitors roll the fees into the discount rate.
Ultimately, Universal Funding Corporation is best suited for businesses that need to factor a lot of invoices. If you would prefer to only factor a few of your invoices, or simply want more control over your invoices, you may want to look elsewhere for funding.
Positive Reviews & Testimonials
Universal Funding Corporation has positive reviews on Trustpilot and a few testimonials on its website. Here is what customers like about the service:
- Friendly, helpful customer service
- Factoring solves cash flow problems
- Easy to qualify for funding
- Low discount rates
We’d like to hear from you, though. Do you have experience with Universal Funding Corporation? What did you think? Leave a message in the comments!
Is Universal Funding Corporation The Right Factor For You?
Universal Funding Corporation works best for businesses that need to factor a large number of invoices.
Although this company does require long-term contracts and additional fees, which some of our other high-rated invoice factors do not require, Universal Funding Corporation is transparent about its requirements and offers some of the lowest discount rates we have seen. In addition to the low rates, the staff is responsive and helpful, borrower qualifications are low, and the service has a generally positive reputation across the web. If you are a good fit for this factor, it is certainly worth considering.
We've done in-depth research on each and confidently recommend them.
We've done in-depth research on each and confidently recommend them.