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Eastern Washington, North Idaho and Montana

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Description

We provide personalized capital funding programs including invoice factoring and purchase order financing to meet your cash flow needs.

BBB Accreditation

A BBB Accredited Business since

BBB has determined that Universal Funding Corporation meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 16 factors. Get the details about the factors considered.

Factors that lowered the rating for Universal Funding Corporation include:

  • 8 complaints filed against business

Factors that raised the rating for Universal Funding Corporation include:

  • Length of time business has been operating.
  • Response to 8 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.
  • BBB has sufficient background information on this business.

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Customer Complaints Summary Read complaint details

8 complaints closed with BBB in last 3 years | 1 closed in last 12 months
Complaint Type Total Closed Complaints
Advertising/Sales Issues 0
Billing/Collection Issues 4
Delivery Issues 0
Guarantee/Warranty Issues 0
Problems with Product/Service 4
Total Closed Complaints 8

Customer Reviews Summary Read customer reviews

5 Customer Reviews on Universal Funding Corporation
Customer Experience Total Customer Reviews
Positive Experience 1
Neutral Experience 0
Negative Experience 4
Total Customer Reviews 5

Additional Information

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BBB file opened: October 11, 2001 Business started: 01/01/1999 in WA Business started locally: 01/01/1999 Business incorporated: 11/22/1994 in WA
Licensing, Bonding or Registration

This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

Department of Revenue Washington State
Department of Revenue ( Public Records Division), PO Box 47478, Olympia WA 98504-7477
http://dor.wa.gov/content/Home/Default.aspx
Phone Number: 800-647-7706

Washington Secretary of State, Corporations Divison
801 Capitol Way South, P.O. Box 40234, Olympia WA 98504-0234
http://www.secstate.wa.gov/corps
Phone Number: 360-753-7115
Fax Number: 360-664-8781

Type of Entity

Corporation

Business Management
Mr. Deron Nicholson, Vice President Mr. Henry Wozow, CEO Ms. Patricia Wozow, Treasurer Mr. Kyle Bergstedt, President Ms. Monica Wozow, Corporate Secretary
Contact Information
Customer Contact: Mr. Kyle Bergstedt, President
Principal: Mr. Deron Nicholson, Vice President
Principal: Mr. Henry Wozow, CEO
Principal: Ms. Patricia Wozow, Treasurer
Business Category

Factors Consumer Finance & Loan Companies

Alternate Business Names
Trucker's Capital 1st Commercial Capital Account Financing Accounts Receivable Factoring Cash Flow Factoring Efactoringqote.com Factoring Company Factoring Directory Factoring Made Simple First Commercial Capital Invoice Factoring Receivable Factoring

Additional Locations

  • 16201 E Indiana Ave Ste 2600

    Spokane Vly, WA 99216 (509) 891-2400

  • PO Box 13115

    Spokane Valley, WA 99213

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  • Advertising or Sales
  • Billing or Collection
  • Problems with Products or Services
  • Delivery
  • Guarantee or Warranty

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Additional Phone Numbers

  • (509) 891-2400(Phone)
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Additional Email Addresses

  • - Customer Service
  • - Communication/Mass Email
  • - Technical Support
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Complaint Detail(s)

7/10/2014 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: In the month of December, 2013 I had a need for financing to grow my company;******** ****** ********** ***. I did a google search and i came across Universal Funding, a spokane Washington based company that specializes in Accounts Receivables financing. On December 3rd, 2013 I called the 800 number on the website and,I talked to a ****** ****** a factoring specialist. I explained to him our financing need. I went ahead and submitted an application to him for approval. On the application and through followup phone calls I explained to ****** ****** that we did have an SBA Loan with *** **** and that the loan had encumbered all the assets of the business including Accounts Receivables. ****** told me to worry about it and that all I had to do was make a request to PNC to subordinate their receivables interest. He told me he had done hundreds of these releases and it would not be an issue. He forwarded me a form for PNC to complete. I told him I would make the request to PNC. ****** followed up through phone and email to provide me with a proposal for financing and a term sheet. The term sheet specifically stated that Universal Funding would need to have a senior lien position on the Accounts Receivables. ****** and another Universal Funding employee ****** ***** requested additional information on my company including Accounts Receivables aging schedules, invoices, tax returns and insurance information. At about that time I told ****** that *** **** had refused to release their 1st lien position on Accounts Receivables. He told me again not to worry about it and he re-sent to me a form to send to them. A few days later, Universal Funding followed up with me, with an underwriting decision which approved my company for a $800,000 line of credit, factoring $400,000 /month. They proceeded to send closing documents for execution. The documents included a Purchase and Assignment agreement and a security agreement. They told me as soon as we executed the forms we were good to go and we could start factoring our receivables. We executed the documents. After that, I went ahead and explained to ****** that *** **** had refused again to release the 1st lien position on our receivables. He went ahead and told me again not to worry about it and all I had to do was send them a form which he emailed me again. For the third time *** **** refused to release their 1st lien position. 4 Months later, we got an email from ***** ******** compliance attorney for Universal Funding, claiming that we did not live up to our purchase and assignment and security agreement we had signed and that we owe Universal Funding $165,600 early termination fees. I explained to ***** the process we went through and that *** **** could not release their 1st lien position and that is why we could not do business with them. He told me clearly that they were getting ready to sue us for the money. He told me the security agreement i signed called for us to put them on 1st position for all assets of the business and if we had any existing loans we had to pay them off. I told him, that is not what was agreed on the term sheet or in any conversations I had with ****** ******. He told me it didn't matter and the lawsuit was moving forward. Universal Funding mis-represented themselves from the very beginning with an intent to defraud us. After doing further research on them online I found lots complaints from clients they have defrauded.They used the bait of approval to induce us to sign contract and security documents with the intent of defrauding us. They know that by filing a lawsuit we would incur legal costs to defend ourselves and we would be inclined to settle with them. We will appreciate any help the Better Business Bureau can provide us in settling this and stopping this company from their unfair business practices.

Desired Settlement: Universal withdraw its demand and acknowledge that Dominion Universal never consummated an arrangement to factor the receivables of Dominion.

Business Response:

To whom it may concern,

On December 3, 2013, Universal Funding emailed a Term Sheet to this client.  The Term Sheet (see attached) stated that Universal Funding required “Accounts Receivable 1st priority position on UCC-1 financing statement.”  This client’s statement acknowledges this when he says “The term sheet specifically stated that Universal Funding would need to have a senior lien position on the Accounts Receivables.”

This client claims that Universal Funding had sent him a form on two separate occasions, before his account was approved, for him to send to *** ****.  However, this never occurred.

On December 20, 2013, this client signed the Purchase and Assignment Agreement with Universal Funding. 

On January 7, 2014, this client signed the Security Agreement.  The Security Agreement states “If Universal is not a first position secured creditor as to the receivables (and other collateral), Client shall comply with Universal’s requests so as to cause Universal to become a first position secured creditor of Client.  This shall include paying off any debts owed to other priority secured creditors within ninety (90) days of this document being executed.”

On January 9, 2014, Universal Funding offered a subordination option to this client, rather than require that the priority position creditor be paid off.

For the following 3 months after closing documents were signed, Universal Funding attempted to contact this client 10 times using both phone and email.  All of the attempts to contact the client are documented in email and phone logs.  Universal Funding was told that the owners were either unavailable or Universal Funding left messages; however, the client never responded.

On May 23, 2014, Universal Funding sent a Notice of Default to this client as there were fully signed closing documents between Universal Funding and this client, and the client was refusing to communicate with Universal Funding.  A response was requested by May 29, 2014.  Although the client alleges in the complaint that Universal Funding threatened to sue in this letter, this is false.   The client never responded to the letter.

On May 30, 2014, Universal Funding sent a Final Notice of Default to this client.  The letter stated that ******** ****** continues to fail to respond to Universal Funding, and that Universal Funding will move forward to enforce its security interest if this client does not respond by June 4, 2014.  At this point for the last five (5) months, Universal Funding had reserved $800,000.00 of funds for this client’s account, pursuant to the signed closing documents, and Universal Funding was losing revenue on these funds as the client continued to fail to meet its contract obligations.

On June 1, 2014, for the first time in over five (5) months, this client responded to Universal Funding.  One of the owners stated that the contract was over because the priority position secured creditor would not subordinate its security interest.  Universal Funding then explained that the subordination was just one available option that Universal Funding was offering; however, it was just one possible option because the two parties already agreed to pay off the priority position secured creditor within 90 days.  The owner then said he would call back the following day.

On June 3, 2014, the client emailed Universal Funding and said that they were referring this to their attorney.  Universal Funding emailed a response asking for the attorney’s contact information.    The attorney then emailed Universal Funding asking for time to review the situation.  Universal Funding then agreed with the client’s attorney that the attorney would respond by June 10th.

On June 10, 2014, the client’s attorney sent a letter to Universal Funding.  The letter though stated that there wasn’t a contract between the parties because the priority position secured creditor wouldn’t subordinate.  The letter though disregarded the fact that the two parties agreed in writing to pay off the priority position secured creditor within 90 days.

On June 10, 2014, Universal Funding responded to the client’s attorney.  The response letter quoted the section of the closing documents where the secured creditor position was discussed.

On June 11, 2014, the client’s attorney responded.  The attorney was again confusing the issue.  The attorney stated that Universal Funding offered a subordination on January 9th and since it offered a subordination, rather than requiring that the priority position creditor be paid off, that a contract didn’t exist between the parties.  This obviously is a misunderstanding of the written agreement between the parties, and it’s also a misunderstanding of the law.

On June 17, 2014, Universal Funding responded to the client’s attorney.  The letter detailed the agreement that was reached between the parties that the client specifically agreed to pay off the priority position secured creditor within 90 days.  It also again reiterated that Universal Funding only offered a subordination, rather than a payoff of the priority position secured creditor, as a possible option that would end up being beneficial to the client. 

On June 18, 2014, Universal Funding then received this BBB complaint.

The client also states in this BBB complaint that Universal Funding has defrauded clients in the past.  This is offensive and completely untrue.  There is a company with a similar name that is completely unrelated to Universal Funding, which this client apparently is viewing on the internet.  Universal Funding is  family-owned company that provides a valuable and honest service to its clients.

Universal Funding reserved $800,000.00 per month for a period of 12 months to comply with its obligations to this client and it has lost a significant amount of revenue on this account, not including the numerous employees and man hours dedicated to this account.  We don’t know why this client failed to respond to Universal Funding for over five (5) months; however, it appears they just wanted out of their contract because they no longer believed that they had a need for financing.  We’ve always been ready, able, and willing to meet our contract obligations, but this client either just doesn’t respond for months at a time or files a BBB complaint to circumvent their obligations.  We always have been able to and still desire to carry out the contract.  We ask that the client now fulfill its obligations as well.

Thank you.

Consumer Response: Universal Funding has made statements in its response that are incorrect. In addition, there is a website where other companies have complained about Universal’s tactics, 

***********************************************************/ 

This website identifies Universal Funding and has the company’s address in Spokane, WA. Also, it has a photograph of ***** ********, Universal’s attorney.

Universal’s posted response does not contain a proposal to resolve this dispute.

Business Response:

In our previous response, we outlined in detail the events that transpired between Universal Funding and this client.  The client responded by simply claiming that Universal Funding’s detailed log of events are “incorrect.”  The client also claims that a blog that is both offensive and extremely disturbing, created by an unknown person, is somehow pertinent to this situation.

On June 30, 2014, Universal Funding received a letter from an attorney, who was hired by this client.  The letter attempts to threaten and bully Universal Funding by claiming a violation of Washington’s Consumer Protection Act (CPA).  However, Washington’s CPA does not even apply.

All that Universal Funding has ever asked is that this client fulfills its obligations pursuant to the signed contract and not try to circumvent its obligations by filing a complaint with the BBB or threaten law violations that clearly don’t even apply.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

9/19/2013 Problems with Product/Service
7/17/2013 Billing/Collection Issues | Complaint Details Unavailable
1/28/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: I had a very poor experience with my very first transaction with Universal Funding. This client is an extremely high profile account, long-time customer, "blue chip". So, why all the verifications, seemed strange. They involved approximately 5 to 6 people. The person who signed the contract, the person who signed the PO, the person who issued the PO, the person in A/R who had to change the address, the person who was responsible for paying the invoice, etc. They copied "ALL" of them on every email......maybe 8 or 9 times, over this one invoice. It was very embarassing and damaged the relationship with my client to the extent that they questioned my "financial stability". As a result, repeat business may be severally curtailed. They are holding $30K of my money for about 3 months and say they will not return it without a large "Early termination fee" for defaulting on my one year agreement. I am unhappy with their services and have not done anything wrong. Don't I have recourse when I am unhappy, even though the contract is for one year. Good business ethics would dictate a full refund.

Desired Settlement: I would like a full refund. Universal Funding has severally damaged my relationship with one of my best clients. I cannot trust them with any of my other clients. I have done nothing wrong. There is no reason to charge me for anything! I am the one who has suffered.

Business Response: The issue that this client is describing is not due to something that Universal Funding has done wrong, as this client implies.  This client requested that Universal Funding purchase a single invoice that totaled $110,924.00.  This client had never funded with Universal Funding prior and was not seeking to fund any other debtors or any other invoices at that time.   There was no business history whatsoever for Universal Funding to utilize in this single large transaction.  As industry standard procedure and as was agreed to in writing, Universal Funding requested verification that this large amount was correct.  It was the debtor that involved several people at the debtor’s company because of confusion on the debtor’s end.  Universal Funding never contacted all of these people as this client wrongfully implies.  With today’s state of the economy, a person can’t even get a mortgage without full and complete disclosure of their financials, assets, debts, and past, present, and future income.  Thus, it doesn’t make logical sense that a company would purchase an invoice for $110,924.00 without even verifying that the amount is correct and the debtor will pay.Universal Funding has worked hard to smooth out any confusion on the debtor’s end and continues to do so.  This client has not lost any business whatsoever, although she states that “repeat business may be severally curtailed.”  This debtor has never stopped doing business nor even cut back on doing business with this client.This client says that she is “unhappy with their services”; however, what she is actually unhappy with is the internal workings of her debtor.  Universal Funding has no control over her debtor’s employees and the emails that they send amongst themselves when they are confused.As Universal Funding discussed with this client on the phone, the confusion and misunderstandings that existed on this debtor’s behalf were unfortunate.  However, Universal Funding has always worked to smooth out these issues and still continues to be available when a debtor, such as this one, has questions or misunderstands the situation.Regarding the funds that are in this client’s Reserve account, these funds were received March 12, 2012, which was two months ago (not three months as this client states).  It was not until recently that Universal Funding was notified by this client that she desired to breach her contract and wanted a full refund; however, Universal Funding went to great lengths and expense to setup this account.  What will Verizon Wireless say if you want to cancel your contract early and request a full refund?  What will the Toyota dealership say if you want to cancel your lease early and request a full refund?   Universal Funding always tries to work with clients but not all client requests are reasonable.  Universal Funding has always been ready and willing to abide by the terms of the contract between the parties and provide funding to this client.  Also, the doors are always open here for communication and other possible resolutions.It is truly unfair to blame Universal Funding for the conduct of another party, as this client is now doing on the BBB website in order to get out of her contract and obtain a full refund.

Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9036335, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

Better Business Bureau Reply message from business: The complaint regarding Universal Funding is the difference between what they did after I signed their contract and what they said they were going to do before I signed the contract.  They did not at any time explain how they would be verifying accounts, except to say “as long as I provided all of the proper documentation, they would just have to change the address with the A/P department.” Firstly, we are speaking about one of the most recognizable large companies in the world that has been in business since the 1930’s. Did I mention revenues in the multi billions? They have been my customer since 1995. How much do we need to question them paying this bill, which is paid annually and which we provided proof of such.  They said in order to verify the single invoice for $110,924.00 I needed to supply the proper documents, i.e. a signed contract with my customer for this annual invoice, a signed P/O, a signed Statement of Work, a signed statement from the person who signed the contract and the person who signed the P/O, a signed acknowledgment and confirmation that they have the invoice in their system and multiple invoices from this client from the previous years. All of these were provided. So, in reply to Universal Funding’s statement regarding standard procedures, I have verified emails that the Accounts Payable Department was contacted eight (8) times, the IT Director seven (7) times, the P/O department two (2) times and my Vendor Representative fourteen (14) times. This is a “little” more than changing an address with an A/P person. I subsequently received this email from my Vendor Representative on 1/17/2012 *******, 

I am concerned about this other company you are using for A/R.  I am going to ask you if ATS is experiencing financial difficulties – Chapter 7? Chapter 11? It is not typical for us to receive a request such as we did for payment of ATS invoices.  Please advise – thanks. Kind regards, 
Now, even after all of this I have been asked by Universal Funding on 1/19/2012 to have the “big boss” personally approve the invoice again. Can _________________ state that it is approved?  This is my return email to Universal Funding on 1/19/2012  I have been embarrassed beyond belief already.  I did not want all of these people involved in all of this.  I was horrified to see__________________ and ____________________ copied on every email between you and ______________when frankly I was trying to keep a low profile on this. The financial stability of my company has already been questioned. No, I'm not asking the big boss if the invoice is ok.  He certainly implied it in his email.  He signed the PO.  He authorized the Statement of Work, He's seen the new Invoice, but didn't see it in the system to approve. If you're not satisfied with all of that, I don't know what else to say.   In your former email, you said if you were copied in on the new invoice, with your address, you would fund.  Now, you're asking for a lot more things. I take people at their word. I would say “repeat business may be severally curtailed” is an accurate statement and Universal Funding has jeopardized my relationship with this client.  How could they possibly claim “This debtor has never even cut back on doing business with this client”?  My client still has concerns about doing projects with my company.  How do I still know what the future holds? How could I possibly trust them with another client?  My client relationships are way too valuable and in this economy I cannot afford to take a chance with another client.  Universal Funding wants me to continue using their services, or pay a severe penalty for an early termination.  I don’t care who they are trying to blame, I have had a horrible experience.  This is not like Verizon Wireless or Toyota where I have used a product.  They are holding my money hostage.  Yes, I am extremely unhappy.  Who wouldn’t be? When I tried, in a business-like manner, to express my discontent with their services, they had their attorney call and accuse me of “whining”.  He kept repeating my desire to breach my contract.  Is this their response to customers like me, who have a legitimate complaint and a way to never be wrong?  Universal Funding talks about being treated fairly. I have been in business for 25 years and know the fair thing is to return my money in full.  What is holding them back from doing the right thing?   

Regards,

******* ********

 

 

Business Response: This client says that Universal Funding never said how it would be verifying accounts; however, this was the very first paragraph of the contract with this client, which specified in detail over four lines in length as to what specific information would be requested.This client keeps reiterating that this debtor does lots of business and can pay its bills.  This however is not the point of the verification process for this invoice totaling $110,924.  If the debtor couldn’t pay its bills then this debtor would never be considered in the first place.  The point of the verification process is to positively confirm that the invoice is correct and the services have been fully rendered.This client was contacted by the debtor and asked if this client was going to file for bankruptcy.  While this situation is unfortunate, it is not the fault of Universal Funding.  Please note that the debtor was not questioning the business practices of Universal Funding, but rather, the debtor was questioning the financial stability of the client.  This email segment that the client posted in her last response originated on January 17, 2012, after the debtor was asked only one time to confirm that the invoice was correct and payment would be sent to Universal Funding.  At that point, it was confirmed by the debtor that the invoice had not been approved and that payment was not setup to be paid to Universal Funding.  This is exactly why such procedures are in place when dealing with an invoice worth $110,924.Upon receipt of that email from the debtor to client asking about the financial status of the client, the client forwarded the email to Universal Funding to respond to the debtor.  That same day, Universal Funding, pursuant to the client’s request, emailed the debtor to assure the debtor that the client was not experiencing financial difficulty.On January 18, 2012, the debtor confirmed that payment would be sent to Universal Funding; however, the debtor also confirmed that the invoice was not approved.On January 19, 2012, the debtor informed the client that the invoice was incorrect.  The client then submitted a corrected invoice that same day.  Universal Funding then contacted the debtor to confirm that all issues were resolved to the debtor’s satisfaction that same day.  On January 23, 2012, the debtor emailed Universal Funding and confirmed that the invoice was now approved. The events that took place here were not of any fault of Universal Funding.  Universal Funding exercised industry-standard procedure to assure that the invoice for $110,924 was correct and it was going to be paid to Universal Funding.  If someone goes to a bank for a line of credit, the bank will also want to confirm the collateral for the line of credit, that the line of credit will be paid back, and how it will be paid back.  If someone applies for a home mortgage, the bank will also want to confirm the property value (just like an invoice verification), that it will be paid back, and how it will be paid back.  The invoice factoring industry is no different.Sometimes there can be the occasional speed bump with a new invoice factoring relationship, but that’s why our account reps actively work to ensure that if a debtor has questions that answers are immediately provided.  In this situation, the account rep assigned to this client responded immediately to this debtor when a question was presented.As we stated in our last response, some client’s requests are unreasonable.  A full refund is not a reasonable solution here.  Universal Funding has gone through great lengths and expense to set up this client’s account and has provided the agreed-upon service to this client.  Universal Funding has always been willing to provide invoice factoring to this client and still remains committed to doing so; however, Universal Funding is always open to a workable resolution for all parties.

Consumer Response:

 

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9036335, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

 

 

 

   It is amazing to me that Universal Funding can never admit to being even partly to blame for what they call an “unfortunate situation”.  Firstly, they outright accuse me of lying, and I quote: “This client has not lost any business whatsoever, although she states that ‘repeat business may be severally curtailed’ “. Then when proof is presented that my client has definitely asked whether I am filing for bankruptcy, their reaction is “that is unfortunate”.  Secondly, even when it was verified by my emails they contacted my client some 35 times to verify one (1) invoice; it does not appear to be unusual to them, just one of those occasional speed bumps. In conclusion, you can never be unhappy (I was accused of whining), Universal Funding is never wrong and they have an iron clad contract which they will threaten you with until their dying breath.  There are no special circumstances and anything you do is considered a “breach of contract”, for which there are severe penalties.  The other alternative is to continue doing business with them, which of course after this experience is not acceptable since Universal Funding thinks they have handled everything correctly. I don’t see a workable solution.

 

 

Regards,

******* ********

 

 

BBB's Final Determination: Consumer accepted resolution offered by the business.

1/15/2013 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Timeline of our interaction with Universal Funding:12/8/11: initial proposal from **** (sales person), discussed on the phone with him, sounded great!12/9/11: initial application, $250 fee paid12/12/11: Congrats email from *****, final agreements sent in12/14/11: AFTER sending final signed agreements, discussion with **** about the need to subordinate to our bank, which has a 1st position on all assets; note that the financial documents received by **** showed bank debt which makes obvious the bank's 1st position12/14/11: initial batch of invoices sent12/14/11: **** sends us the subordination agreement, notifies us that it's required to move forward, they cannot factor without it12/15/11: our bank requires more time to discuss1/3/12: our bank denies the request, I notify **** and do not receive a replyNo communication for 9 months, now we go to start a new loan and find there's a UCC filing from Universal Funding on all our assets, in a second position to our bank.8/31/12: requested to ****, *****, ***** that the UCC filing be removed, did not receive a reply to multiple emails/voicemails9/5/12: was able to spoke to *****, he offered to help us work with the bank9/27/12: got the final word from our bank, they will not subordinate under any conditions, notified ***** and ***** offered to take a second position to the bank. I said no, we need to remove the UCC filing immediately, ***** said that's not possible, we signed a contract and would need to pay approx. $17k to void the contract.It's not ok to say something isn't possible, then 10 months later, say that it's been possible all along and now we owe a fee. ***** said he wasn't privy to ****'s conversations and that they're irrelevant. This is classic bait and switch.

Desired Settlement: Voided contract with no fee, UCC filing removed

Business Response: The statement that this client made is not accurate as to transpired events.  Unfortunately, miscommunications do occasionally occur with business transactions.  Nonetheless, Universal Funding has been in contact with this client and is currently actively working with this client to come to a mutually agreed upon resolution to the satisfaction of both parties. 

Consumer Response:
Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9243434, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

We made two offers to Universal Funding to resolve this case, one for $500 and one for $1,000. They did not make a counter offer for either of our offers, we are essentially negotiating against ourselves. They have accused us of not taking the issue seriously and not making a good faith offer and have threatened to sue us if we do not respond by November 1.
 
After approving our contract on 12/14/11, Universal did not buy the receivables we sent them on that same date. According to them, they were unable to do so at the time. We would like to better understand what we did wrong when Universal Funding was unable to provide the service that they approved us for and then were unable to provide.
 
We would like to resolve this matter but are unclear what would be acceptable to Universal Funding.

Regards,

**** ******



Business Response: ******* signed a one-year contract with Universal Funding on December 13, 2011.  After signing the contract, ******* decided that it was not going to offer any invoices to Universal Funding for purchase.  Even to this day, ******* has refused to offer even a single invoice for purchase.  Universal Funding has actively tried to work with ******* by offering alternatives and contract amendments to make it work for *******; however, ******* has refused all such options.  The out-of-pocket expenses incurred by Universal Funding alone to date far exceed the offers made by *******.Universal Funding and ******* previously agreed on an amount to settle the account if ******* decided not to offer its receivables for purchase; however, ******* now is refusing to honor that agreement. 

At this point, it is not clear what Universal Funding can do to resolve this since ******* doesn’t want to utilize any of the options that Universal Funding has offered and *******’s only solution is to offer a small amount of money that will cause Universal Funding to lose money on a contract that ******* wanted.

 

Best Regards,

Universal Funding Corporation

Consumer Response:
Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9243434, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

******* signed a one year contract on 12/13/2011 with Universal Funding. We submitted a list of receivables and an initial invoice with our application on 12/8 and more invoices as soon as receiving approval from ***** on 12/14/2011. Universal did not fund the invoices we sent them. We are open to any options Universal Funding provides, but at this point they have offered none other than to threaten a lawsuit against us. We would have much preferred that Universal funded our invoices per the contract we signed, but as they stated at the time (on the phone, not in writing) and reiterated this October (again on the phone), they were unable to subordinate to our bank and therefore were unable to fund our invoices. By their own admission, they were unable to provide the service that we contracted with them to provide.
 
Universal Funding and ******* did not agree on an amount at any point. ******* offered $1,700 on 10/1/12 and withdrew the offer when we consulted our attorney about the facts of the case. If Universal Funding is willing to accept the $1,700 offer, we would gladly pay that amount to resolve this matter.
 
Regards,

**** ****** 




Business Response: To date, ******* has only sent a single invoice to Universal Funding, which was sent during the underwriting process and was only sent as a sample invoice.  It was not sent to be funded.  To date, ******* has not sent any invoices to Universal Funding for purchase.Although ******* now states that it is open to any options, this is contrary to what *******’s president and attorney have stated both telephonically and in writing.******* and Universal Funding agreed in writing on December 13, 2011, as to a settlement amount if ******* does not want to follow through with its contract.  Universal Funding also explained to *******’s president on September 5, 2012, and October 2, 2012, that the account can be funded.  *******’s president stated however that ******* would not offer any invoices to Universal Funding.

As stated prior, Universal Funding will lose a considerable amount of money in out-of-pocket expenses if it were to accept *******’s offer to terminate its contract.  Just because ******* does not want to honor its contract, does not mean that Universal Funding should be responsible for the resulting loss.  ******* needs to take responsibility for its own actions and decisions.

Thank you.

Consumer Response:
Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9243434, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
I have attached the invoices we submitted on December 14, 2011, via email to ****, our sales representative at Universal Funding. We submitted a total of $21,094.98 in the first submission, along with proof of shipping as required by Universal. I am unclear why Universal is continuing to deny that we submitted invoices.
 
Regardless of whether we submitted invoices or not, **** informed me via phone on December 14 that he could not fund our invoices until our bank subordinated to Universal Funding. **** sent me an agreement to get my bank to sign (also attached) on 12/14/12. Our bank, ultimately, did not agree to sign the agreement and when I informed **** of this he did not respond to my email on 1/3/12 notifying him of such.
 
Universal Funding did not fund the invoices we sent to them, thereby breaching the contract we signed with them. The contract also clearly states that they can, at their option, subordinate to another lender. Universal Funding, by their action of not funding invoices we sent to them, clearly chose not to honor the contract that they signed with *******.
 
We received no communication from Universal until contacting them in September to remove their UCC filing.
 
Then, in a phone call on September 5, Universal Funding offered to fund our invoices, but did not mention they were able to subordinate. I checked with my bank, who continued to be unwilling to subordinate. On the phone on October 2, Universal Funding offered to fund our invoices without subordination, something they confirmed they were not able to do back in December 2011/January 2012.
 
We submitted invoices on 12/14/11 that Universal Funding never funded. The breach of contract was on their end. We would like to resolve this matter without further obfuscation of the facts.
 

Regards,

**** ****** 




Consumer Response:

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9243434, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

A response to Universal Funding:
 
The contract does give Universal Funding the option to choose which invoices to purchase. However, it does not clarify what happens if Universal chooses not to buy any invoices whatsoever, which is what happened in this case. If Universal Funding truly desired to comply with the contract, they would have funded at least one of the invoices we sent to them in December 2011.
 
We have proof of receipt of an email by Universal Funding with the invoices we sent them for purchase on 12/14/11. In October, 2012, Universal Funding offered to subordinate to our bank and to buy our invoices, something they admitted was not possible in December of 2011, I did reject that offer at that time.
 
We reject their representation of the facts of this case.
 
 
> As stated previously, ******* has never sent any invoices to Universal Funding for purchase.  *******’s president even has expressly stated that ******* would not offer any invoices for purchase.Universal Funding has never breached the contract with *******.  First, no invoices were offered for purchase.  Second, the contract that the parties entered into does not require Universal Funding to purchase all invoices.
> The Security Agreement that was signed between the parties expressly states that Universal Funding acknowledges that it may not have a first priority UCC interest in the collateral but Universal Funding does desire to obtain priority position.  Universal funding desires to comply with the contract but ******* still is refusing to do so.
 

Regards,

**** ****** 




Business Response: As stated previously, ******* has never sent any invoices to Universal Funding for purchase.  *******’s president even has expressly stated that ******* would not offer any invoices for purchase.Universal Funding has never breached the contract with *******.  First, no invoices were offered for purchase.  Second, the contract that the parties entered into does not require Universal Funding to purchase all invoices.

The Security Agreement that was signed between the parties expressly states that Universal Funding acknowledges that it may not have a first priority UCC interest in the collateral but Universal Funding does desire to obtain priority position.  Universal funding desires to comply with the contract but ******* still is refusing to do so.

Thank you.

BBB's Final Determination: Consumer accepted resolution offered by the business.

BBB Comments: BBB was informed by consumer that they were able to reach a resolution to this dispute.

12/18/2012 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: Universal Funding provided factor services for my (now defunct) company, ** ********* LLC, from Dec 2009 through September 2010. At that time company president **** ********* emailed me that he believed I had some money coming back to me. Shortly afterward, he emailed me again that, because of fees, I owed his company $2,082.69. When I finally added up all of the invoices I sold to him, I reached a total figure of $347,840.85. Total payment received from Universal was $302,367.91. I questioned the balance of $45,472.94 in a letter to Mr. ********* dated February 17, 2012. I received an email response from him on February 22, 2012, in which he said he would get back to me sometime the next week. I heard nothing, not even after my follow up email of June 28,2012. Even with fees, I believe I should have something left of $45,472.94.

Desired Settlement: $45,472.94, minus all fees and percentages listed in our original agreement.

Business Response: September 27, 2012Better Business BureauRE:      Case # 9219988            ******* ****** ********** [sic]On behalf of Universal Funding Corporation in the above-referenced matter I submit this response.While I have no direct recollection of any conversation I may have had with Mr. ********* regarding fees and the termination of his account, I will be more than happy to provide an exact accounting.  However, as our system is in need of an update so that I can retrieve the information that is two years old.  The update is supposed to be done this weekend (September 29-30).  Upon being able to retrieve the information the first of next week (October 1-5) and I will be able to review the account and provide a detailed response.

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9219988, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

I will mail my documentation to you by the end of this week; by then I hope Mr. ********* will have his computer updated.

Regards,

******* ********** 




Business Response: I have now been able to pull reports for ** *********, LLC (“*********”) and summarize his account below.  The referenced reports are attached.********* entered into a one year agreement with Universal on December 7, 2009.  When invoices are paid the residual (amount paid less the amount advanced less accrued fees) is put into the Reserve account.  The reserves accrue and occasionally distributed to the client.  Universal released a total of $42,422.03 from reserves to *********.  The attached reserve report shows the accounting for the reserves (i.e., all funds received and the closing out of factored invoices).

The agreement provided, in part, that for a monthly factoring requirement of at least $48,000 per month for 12 months.  If this was not met then ********* would be charged the monthly fees multiplied by $48,000 (or the shortfall of that amount).  ********* only met the monthly minimum 3 months.  ********* also did not factor any invoices for a total of 3 months.  ********* was charged $9,293.58 for monthly minimums; however, ********* should have been charged $10,697.03.  This would leave a remaining balance of $1,403.45 owed to Universal.  It is Universal that was not compensated in full pursuant to the agreement (and probably more as it is apparent that ********* was probably in default pursuant to the terms of the agreement).

It is clear that Mr. ********* is mistaken in his statement that Universal owes him $45,472.94.  In fact, the reserve report shows that a total of $42,422.03 was released from reserves and it seems that has forgot about the reserve disbursements.

 

Consumer Response:

I agree with Universal that I did not factor any invoices for several months, after losing my largest customer. At that point, Universal would not release any reserves until I started factoring all invoices. There is an email stating this in the information package. I'm not denying that Universal is entitled to fees; that's how it makes a profit. What I can't understand is how Universal can claimed to have paid me a reserve balance of $42,422.03? This is so close to my figure of $41,671.33 as to make me wonder where their profit margin is, and where are the fees and penalties for the months I didn't factor? I stopped operations completely by September- where are the fees and penalties for early termination? These were listed in an email from Mr. ********* at the time, and also included with the other information I sent in.

Universal owes me $41,671.33, minus fees, charges, and penalties outlined in our contract.

 

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9219988, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

[To assist us in bringing this matter to a close, we would like to know your view on the matter.]

Regards,

******* **********




Business Response:

To follow up on my last response, I would like to point out some entries on the previously provided Reserve Report.Below is a list of the dates and the amounts of the Reserves that were released to Mr. *********
:February 22, 2010            $1,599.16
March 10, 2010                  $7,777.65
March 25, 2010                  $2,844.31
April 8, 2010                        $17,625.00
April 28, 2010                     $10,662.38
July 6, 2010                         $1,913.53              
 
Total ==                $42,422.03A full accounting has been provided in the Reserve Report.  Should he have any questions regarding specific entries I would be more than happy to answer them.  It seems the amount he is claiming is oddly similar to the monies that have been released to him while the account was active.Universal still stands with the previous balance of $1,403.45 remains owed to Universal.

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9219988, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

I agree with the amounts Universal has reported; these are included in my original totals. I pulled my information from the "Purchases and Advances Reports," which have handwritten totals of advances and reserves. I had to sign these sheets and return them to Universal, in order to get paid (there are copies in the package I mailed to the BBB.) There is no issue there. The issue is- what happened to the $41,671.33?





Business Response:

Mr. ********* agrees with the totals; however, he still claims to be owed money.  As I have previously provided a full accounting to Mr. ********* (Reserve Report), I ask that Mr. ********* provide an accounting so that I can understand how he arrives at the figure of $41,671.33 that is allegedly owed to him.  At this point I am not aware of any other accounting or information that I could provide him that may to be of assistance to him or the resolution of his complaint.

 

Consumer Response: [To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Better Business Bureau:

I have reviewed the response made by the business in reference to complaint ID 9219988, and have determined that this does not resolve my complaint.  For your reference, details of the offer I reviewed appear below.

Enclosed is my work sheet listing invoices sold to Universal on the left, and payments to me (with payment dates) on the right. This information is taken from Universal's 'Purchases and Advances Reports,' which I had to sign and return for funds to be released. These reports are included in the package forwarded to Mr. *********. The left column totals $ 347,840.90, and the right is $ 306,169.57. The difference is $ 41,671.33. How does Mr. ********* account for this amount?

Regards,

******* **********




Business Response: In the information that I have already provided (Reserve Report, etc.) here is a breakdown of the cash flow regarding the ** ********* account:$345,290.20        Monies received on the ********* account $272,499.22        less Cash Advances on the purchase of invoices$72,790.98           Remaining Balance$42,422.03           less Monies disbursed to ********* from the reserves$30,368.95           Balance$ 5,217.59            less Initial Fees charged at the time of purchase of inoices$10,803.76           less Accrued Fees charged when invoices were paid.$14,347.60           Balance$     794.60            less Charges for Wires, ACH, Credit Reports, POA Recording, UCC Reports/Filing, etc.$13,553.00           Balance$13,553.00           less Charges for Minimum Volume Requirement, 5% Recourse, Non Factored Fees, etc.$         0.00            Balance$  1,403.45           Remaining Monies owed to Universal for Termination.                                                   

As you can see, Universal still claims that ********* still owes money to Universal pursuant to the terms and conditions of the Purchase and Assignment Agreement.  All of the figures above are also provided for in the documentation that has already been provided to Mr. *********.

 

Respectfully,

 

**** *********

 

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/30/2011 Problems with Product/Service | Read Complaint Details
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Additional Notes

Complaint: Bait and switch. As mentioned by the other complaints on BBB, we are having the same experience. At Universal Funding, their description of how things work from the sales department have nothing to do with how it really happens once a contract is signed,(ie have control of your receivables). First, no one there returns phone calls or emails about questions or account status. Second it takes them about 2-3 weeks to fund a fraction of our invoices, the rest never funded even when customer has paid it, then they tie up the reserve account for months, not when the account pays the invoice in full as they describe during the sales pitch. Third, our account rep whom gave us permission to change the remit address on unfunded accounts, was fired or quit, and no one at universal called us back nor replied to emails for almost two weeks let alone funded any money or worked on our account in any manner. Meanwhile as we had a few customers pay us whom invoices were not sent nor funded, Universal called them and threatened that they would have to pay twice... costing us these accounts. The best part... Universal has only funded us 175k and our customers have paid them 211k. As of now, we have loaned them over 30k, and we are the bad guys. They are using our money to fund us, and charge us for it... nice concept huh. Their apparent goal is to trickle us money slower than our customers pay, thus living off the difference. They lied about almost every aspect of their company to get the receivables then treat you like garbage after. Most disappointing part is that the nice salesman has not returned a single phone nor any emails since the month the contract was executed. I contacted the president, whom never called me back, but did send me two nice emails saying he would call me and never did. AVOID this Company!!!!!! The fancy website about the team and hobbies is only a cover for a hijacking of your receivables.

Desired Settlement: There is no way this is relationship benefits either of our companies. We would like to terminate the contract immediately, with no penalty. As we have a positive cash balance, after fees, immediate payment to ADDCO of any reserve account balance. Any customers who remit to Universal funding after account settlement will be forwarded to ADDCO immediately overnight. Also a formal release of all claims to any AR after the 1.79% fee of funded monies.

Business Response:

To whom it may concern:

Addco and Universal Funding are currently communicating regarding a means to resolve this matter.  Universal Funding has drafted a response to Addco's complaint and Universal Funding stands by its actions; however, as the lines of communication have already been opened to resolve this matter, it may now be counterproductive for Universal Funding to file a response that may cause more posturing between the parites.

As Universal Funding has already drafted a response however, we are able to formally respond at any time if so requested.

Thank you.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved

12/24/2011 Billing/Collection Issues | Read Complaint Details
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Additional Notes

Complaint: Once there is a reserve account set up (which is funded with your own money) they then take funds from it and never send monthly statements or an explaination as to what the funds drawn from account was used for. We recently ask for an accounting of our reserve account to find out that $5,000.00 was drawn from it with out prior notice and after emails and phone calls no one at Universal Funding has explained to us what this withdrawl was for. When I originally looked into factoring invoices with this company I was told by ***** that I only needed to factor my invoices on an as needed basis. Then they give you a lengthly agreement to sign and in the fine print it says that they may at Their discretion charge you for not factoring. They need to change this wording from may to will with that being said since we were approved for $150,000 they take half of that times your factoring fee and charge you that amount per month regardless if you factor invoices or not. In our case that is about $1,200 per monthif we do not have any of our invoices factored. I could go on about how pourly our account has been handled.

Desired Settlement: I would like an explaination (not just some acronym that I have no idea what it is) of all funds drawn from this account and a refund of exsessive funds drawn from this account. I would also like to be released from my contract.

Business Response:

To Whom It May Concern:

A custom accounts receivable package was put together for this account that included a reduced fee in exchange for this account agreeing to offer all of its accounts receivables to Universal Funding for purchase.  This was actually the second sentence in the contract.  The Reserve Account is industry standard procedure for all invoice factoring companies.  It is merely a small amount of funds kept in the client’s account as security in the event that an invoice or invoices do not pay.

******** ***** failed to offer invoices for purchase for a period of six (6) months.  This entire time, a $150,000 line of capital was dedicated to this account for use at any time.  Just as there is a fee to secure a bank line of credit, there is also a fee to secure an invoice line of capital.  All of these terms were clearly detailed in the contract that this client signed.  Also, there is no “fine print” in the contract.  The entire font is the same size and clearly readable. 

Regarding the $5,000 that is referenced, this amount is and has always been part of this account.  This amount was merely ear tagged in the event invoices were not paid by a high-risk debtor that this client desired to sell to Universal Funding.  Universal Funding worked diligently to establish positive trade references for this debtor; however, Universal Funding was unable to obtain positive feedback for this debtor.

Lastly, ******** ******, as stated above, did not offer invoices for purchase for a period of six (6) months, and as such, it only sold invoices to Universal Funding twice.  Email records indicate that two detailed Reserve Reports were sent to American Hydro, and additional reports would have been sent had they been requested.

Universal is willing to work amicably to settle this situation and terminate the contract pursuant to the previously agree upon terms.

Thank you.

BBB's Final Determination: Business offered a resolution. Consumer did not pursue further with BBB and the matter was assumed to be resolved