Payost v Universal Funding

If you own a storm restoration company, you’re in the business of going the extra mile for communities ravaged by storms and natural disasters. But who goes the extra mile for you? Keeping crews on the scene 16 hours a day for days and weeks at a time can cost thousands of dollars a day.

But the utility isn’t going to pay you until 90 to 120 days after power is restored. So when you return to base after having exhausted all your working capital, how will you meet payroll? Or conduct equipment maintenance? Or pay your subcontractors? Should you reach out to Universal Funding for invoice factoring? We’ll find out below.

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What is Universal Funding and What do They Offer?


Universal Funding Corporation has been around for more than two decades. Their core business is invoice factoring. They work exclusively with B2B businesses in various industries and have a solid reputation for reliability. One reason so many companies consider using Universal Funding is because they often pay off as much as 95% of the value of the invoice.

How Does Universal Funding Work?

Universal Funding works by purchasing your unpaid invoices and providing cash so you can stay afloat. They offer some of the highest payoff rates in the factoring industry that we’ve seen. However, that high payoff percentage masks a few inconvenient truths.

For instance, they require that your company has at least $300,000 in annual revenue. Also, they have a lot of hidden fees that kick in when you least expect it and chip away at that high payoff rate. And they require you to sign a long-term contract and commit to factoring a certain number of invoices. Those facts alone should be enough to raise red flags if you own a storm restoration company.


Universal Funding Qualification Requirements

As is usually the case with factoring companies, Universal Funding doesn’t run a credit check on you. They’re primarily interested in the creditworthiness of the company you billed. That’s not to say, however, that they don’t have some requirements. To gain access to their service you’ll need:

  • $300,000 in annual revenue.
  • A willingness to commit to a long-term contract.

That annual revenue bar is something a lot of smaller companies with cash flow issues won’t be able to clear. And the long-term commitment could easily box your company in financially and undermine your profitability.

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Application Process

The application process for Universal Funding is neither the easiest out there nor the most difficult. Before you can apply, however, you’ll need to open an account. That is relatively easy. Just provide some basic information such as your name, phone number, and email. That’s it and you’re all set.

Once the account has been set up go to their application page. There, you’ll be asked to provide more detailed information about your company that include but are not limited to the following:

  • Your company’s annual revenue
  • How long you’ve been in business
  • Your accounts payable aging report.
  • A sample invoice
  • Your most recent accounts receivable

You’ll also be asked if you’re willing to commit to a long-term contract. If you’re not, that will be the end of the application process. Some Universal Funding reviews state that there’s no minimum commitment. There is. That’s the only way the company is able to offer their high funding rates.

Once you’ve finished the application process, the company will look it over. How long this takes varies from company to company. When they’ve completed their review, they will notify you if you’ve been accepted. If you have, they will provide you a means to start uploading your invoices.


Universal Funding Pros and Cons

Unlike a lot of factoring companies that have only popped up in the past few years, Universal Funding has been around since the mid-1990s. As such, you can be pretty sure they’re reputable. That said, if you’re a storm restoration company, you might want to think twice before choosing to factor your invoices.

Here are the pros and cons of Universal Funding:


  • There’s no credit check to use their service
  • They will factor up to $5 million in invoices per year
  • They disburse your funds pretty quickly


  • You must have at least $300,000 in annual revenue
  • You must sign a 1-year minimum contract
  • They purchase your invoices and inform the utility that you sold the invoice
  • If your invoice doesn’t perform, you have to buy it back from them. No buts.
  • They have a 45-day overdue limit which is the shortest in the industry
  • They charge a pretty hefty termination fee
  • They charge pretty hefty fees if you don’t make the monthly minimum

Unlike Universal Funding, Payost doesn’t purchase your invoices. That’s good because the utility will never learn that you needed advance funding. In addition, we don’t engage in recourse factoring where you’ll need to buy back invoices and there’s no minimum revenue bars to clear. If you have unpaid invoices being held by a AAA credit rated company, we can help you. Period.

“A lot of times, people don't know what they want until you show it to them.” - Steve Jobs

Universal Funding Review

A review of Universal Funding shows that they work fast and don’t do a credit check. However, they have minimum revenue requirements, engage in recourse factoring, and inform your customers that you needed help.

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Universal Funding vs Payost Comparison

Universal Funding offers a high payout rate for qualifying invoices. But they undermine the value of that feature by requiring a long term commitment and planting hidden fees at every fork in the road. They also inform the utility that you’ve sold the invoice which can damage the reputation of your company that you’ve worked so hard to build.

The best option if you need advance funding is to choose Payost invoice financing. With Payost...

  • There’s no credit check
  • No long-term commitment.
  • We don’t notify the utility that your invoice has been sold to us
  • And applying is a fast process as are payouts

At Payost, we’re not in the business of lending money. Instead, we pay you for the work you did. Once the utility pays off the invoice, you redirect it to us along with a modest fee for our services. That’s it.

Bottom Line: Should you try Payost?

If you have unpaid invoices being held by AAA credit rated companies, invoice factoring is like shooting yourself in the foot. By contrast, Payost invoice financing will pay off just as quick or quicker, won’t sully your company’s reputation, and won’t require you to make a long-term commitment. That’s what makes us a better choice than:

  • Invoice factoring
  • Bank loans
  • Lines of credit
  • Accounts receivable factoring
  • And every other type of advance funding

Contact Payost today to learn how we go the extra mile for storm restoration companies!

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