Overview
Universal Funding Corporation is a family-owned invoice factoring company in Spokane Valley, Washington. Its about page says it has been in business since 1998 and has provided more than $2 billion in funding. The BBB profile lists a 1998 business start date, lists CEO Henry D. Wozow, President Kyle Bergstedt and two other Wozow family members as principals, and shows the business has been BBB accredited since November 2001.
The founding story explains the company's focus. According to the founder's bio, Henry Wozow and his wife ran a printing company that used factoring during a growth phase, later sold it, and then started a factoring company to offer the same kind of funding to others. Printing is still one of the industries Universal lists, alongside manufacturing, staffing, wholesale and distribution, oil and gas, transportation, business services and security firms.
Universal targets established B2B companies that bill on net terms and have steady receivables. Its homepage frames the offer around three numbers: advances up to 95%, rates from 0.55%, and invoice volume between $25,000 and $20,000,000 a month. It also offers purchase order financing, payroll funding for staffing firms and help for businesses trying to get out of merchant cash advance debt or IRS problems.
What sets Universal apart is not its product list, which is fairly standard, but the amount of pricing detail it puts on its website. That makes it one of the easier factors to evaluate before you pick up the phone.
Rates, advances and fees
Universal's rates page includes a side-by-side table that lists its own fees next to what it describes as typical charges at other lenders and other factoring companies. The comparison columns are Universal's own characterization of competitors, so we do not rely on them. Universal's own column is the useful part:
| Item | Universal Funding, as published |
|---|---|
| Monthly invoice volume | $25,000 to $20 million |
| Advance rate | Up to 95% |
| Days to fund | 1 to 2 |
| Credit line | Up to $20 million a month |
| Fee for first 30 days | 0.55% to 2% |
| Monthly access fee | $0 |
| Credit approvals | $35 |
| Overadvance fee | None |
| Lockbox fee | $50 |
| Same-day funding fee | None |
| Early wire fee | None |
| Outgoing wire fee | $30 |
A few things stand out. The core rate is quoted for the first 30 days, which tells you the fee will rise if a customer takes longer to pay; the table does not say by how much. Read the rate as 0.55% to 2% per 30 days, not per invoice. A customer who pays in 60 days could roughly double the cost.
The small fees are real but modest. A $35 charge for each customer credit approval adds up if you have many small customers, and the $50 lockbox fee is presumably monthly, although the table does not say. The $30 outgoing wire fee applies each time you choose wire rather than ACH. The table shows no monthly access fee, no same-day funding fee and no overadvance fee, which compares well with what many factors charge.
On advances, the rates page says Universal advances up to 95% of eligible invoices and that most factors advance 80% to 95% depending on industry, volume and customer credit. Expect your actual advance to depend on those same factors.
Universal's FAQ, separately, says factoring fees in general run from 1% to 5% of invoice value. That is an industry description, not Universal's price, but it is a fair reminder that the 0.55% floor will not apply to everyone. For more on the fees that can sit outside the headline rate, see our guide to factoring hidden fees.
Contract terms
For all its fee detail, Universal says little about the contract itself. The site does not publish a term length, renewal clause, notice period or termination fee. Its rates page tells readers to check whether a provider requires them to factor every invoice and whether there is a minimum volume or long-term lock-in, but it does not answer those questions about its own agreement. The FAQ explains spot factoring and contract factoring in general terms without saying which Universal offers.
The clearest restriction is the volume floor. Universal's homepage and fee table both put the minimum at $25,000 a month in invoices. That rules it out for very small businesses and new firms with only a few customers.
On recourse, the FAQ explains the difference between recourse and non-recourse factoring but does not say which Universal writes. Assume recourse unless your agreement states otherwise; our guide on recourse versus non-recourse factoring explains what that means if a customer fails to pay.
On notification, Universal says it manages invoicing and collections for clients, which means your customers will pay Universal directly. The homepage also notes that, unlike bank lines and merchant cash advances, Universal does not require access to your bank account or accounting software for approval.
Funding speed and service
Universal says funding arrives within 24 hours of approval. Its fee table gives 1 to 2 days to fund, and the FAQ says that once an account is established, ongoing funding can often happen the same day invoices are submitted. New clients should expect approval to take anywhere from 24 hours to a few days, depending on the business and the customer credit checks needed.
Underwriting is done in house and each client gets a dedicated account representative, according to the fee table. The company has its own online platform for submitting invoices.
BBB rates Universal Funding A+. It has been accredited since 2001, and the profile showed no complaints in the past three years when we checked.
Who it's for
Universal Funding is a good match for:
- Established B2B businesses with at least $25,000 a month in invoices that want to see a fee schedule before talking to sales.
- Staffing agencies and security firms with weekly payroll and customers on 30- to 90-day terms. See staffing factoring and security company factoring.
- Manufacturers, distributors and printers, which match the founder's own background. See manufacturing factoring.
- Businesses carrying merchant cash advance debt that want to replace daily debits with invoice-based funding.
It is a poor fit for start-ups or very small firms below the $25,000 floor, and for carriers who specifically need a fuel advance or non-recourse cover, neither of which Universal advertises.
Pros and cons
Pros
- Publishes a line-item fee table, rare among factors
- First-30-day rate of 0.55% to 2%
- Advances up to 95%
- No monthly access fee, same-day funding fee or overadvance fee
- Facilities up to $20 million a month
- In-house underwriting and a dedicated account representative
- Family-owned, BBB accredited since 2001 with an A+ rating and no complaints in three years at the time we checked
Cons
- Minimum of $25,000 a month in invoice volume
- Rate is quoted for the first 30 days only; the cost of later periods is not shown
- $35 charge for each customer credit approval
- Contract length and termination terms are not published
- Recourse status is not stated
- No fuel advance program for carriers
How it compares
Universal's fee table puts it ahead of most peers on transparency. Charter Capital comes closest, publishing a 1% to 3% range and waived setup fees and saying it has no minimum volume, which suits smaller firms that fall under Universal's $25,000 floor. 1st Commercial Credit publishes a rate range and an average fee of about 2.25% but no line-item charges. Bay View Funding, owned by a bank, publishes far less. Use our calculator to model the full cost of a quote, including small fees.
Frequently asked questions
What are Universal Funding's rates?
Its published fee for the first 30 days is 0.55% to 2% of the invoice. The rate depends on volume, customer credit, industry and payment terms, and invoices that stay open longer will cost more.
What other fees does Universal Funding charge?
Its fee table lists $35 per credit approval, a $50 lockbox fee and $30 for outgoing wires. It lists no monthly access fee, same-day funding fee, early wire fee or overadvance fee.
Is there a minimum volume?
Yes. Universal works with businesses invoicing between $25,000 and $20 million a month.
How much does Universal Funding advance?
Up to 95% of eligible invoices, according to its homepage and rates page.
How fast does Universal Funding pay?
The fee table says 1 to 2 days to fund. Once an account is established, the FAQ says funding can often happen the same day invoices are submitted.