Keep it in the Family Business
January 29, 2013
By Laura Walker for Universal Funding Corporation
Family-owned and operated businesses are a major part of our economy, so keeping them alive and thriving is crucial to the continued prosperity of America. Whether it’s the mom and pop diner on Main Street; the local plumber and his sons; or Wal‑Mart, the largest family owned business in the country; or Zildjian Cymbal Company, the oldest family owned business operating in the United States (founded in Constantinople in 1623 and moved to the U.S. with the family in 1929); these establishments are the pride of America.
According to U.S. Small Business Administration 2011 data, family businesses make up 90% of all businesses in North America, and provide 62% of the United States’ jobs. The average life span of a family-owned business is 24 years. Approximately 40% of family-owned businesses in the U.S. are successfully passed down to the second-generation, roughly 13% are handed down to a third generation, and 3% will go on to the fourth generation or beyond.
The growth and development of these businesses depends upon a number of factors, the most important of which is cash flow. Without access to capital the family business is destined for ruin. One way to ensure a small business owned and/or operated by a family will be around for the next generation is to maximize its resources. One fast cash resource many companies don’t realize they have is in their own accounts receivable.
Invoices with 30 to 90-day terms can be cashed out to a factor for immediate capital. Universal Funding Corporation purchases invoices at a discounted rate in order to provide businesses with a debt-free financing solution. Not only does Universal Funding offer some of the lowest rates for invoice factoring out there, but the personalized service is guaranteed because Universal is a family-owned and operated business. We know how important it is to keep it in the family.