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Accounts Receivable Factoring FAQs
The following questions and answers will provide you with an
understanding of invoice factoring, what it is, how it works,
and how your company can begin this funding process to enhance
your working capital and cash flow.
Contact United Capital Funding in confidence today to see how
we can assist you with factoring services.
What is Factoring?
Factoring is the purchase of valid commercial Accounts
Receivable [AR] for cash.
Is United Capital Funding a “broker” or a “Factor?”
United Capital Funding is a factor, NOT a broker. A broker is
a “middleman” who represents multiple funding sources, and is
paid a fee for doing so. There are many excellent brokers that
exist in the market place. However, we fund utilizing our own
resources and capital. We believe that our tailor-made
approach to each clients individual needs is why we have
succeeded in the competitive financial services industry.
Do I have to pay an application fee? Start up fee? Closing
costs? Documentation fee?
No. United Capital Funding does not have the typical
fees found elsewhere. There are no application fees, start up
fees, documentation fees, “due diligence” fees or closing
fees. With United Capital Funding there are NO hidden
fees of any kind.
I thought factoring was used only by companies in financial
“trouble?”
Factoring gives your business the power to grow, without
giving away equity or taking on debt. Contrary to what you may
have heard, factoring is NOT a tool used only by struggling
companies. Financially smart companies use factoring as a
powerful tool to release capital tied up in AR.
What kinds of businesses does United Capital Funding serve?
We provide capital to manufacturing, service, staffing,
distribution, wholesale, communication, pharmaceutical,
printing, telecommunication and transportation companies, as
well as others, on a national basis.
How is factoring different from a loan, say from a bank? Do I
have to sign a Personal Guarantee?
Factoring is not a loan; it is the process of purchasing valid
commercial AR [invoices] from your business at a small
discount. Unlike most banks and other factors, there is NO
personal guarantee required with our professional funding
services.
Does my business qualify for factoring?
Almost every business can qualify. Our guidelines are very
simple: if you have AR, due to a sale in a business to
business transaction, you may qualify. Any size invoice can be
funded, provided the service you offer, or the product you
sell has been completed and delivered.
Don’t I have to be in business for 3 years or more, like the
bank said?
No, United Capital Funding has very successfully funded
many start up businesses. We fund from start ups to more than
$2 Million a month in sales for clients nationwide. We also
have successfully funded many 8(a) Certified Minority
Contractors.
Do I have to factor all of my Invoices?
No! Unlike most other factors, you remain in control by
picking which client and which invoice to factor. Our
pricing is duration based, so you only pay for the funding
you use, when you use it.
Are there any minimum volume requirements?
There are no monthly, quarterly or annual minimum volume
requirements. This allows you maximum flexibility and ensures
you only pay for the funding you actually use.
What information do you need to start the funding process?
Click here to see our simple and “user friendly” application.
It usually takes less than 10 minutes to complete the application. Please be sure to include a current AR aging
schedule with the signed application. We will respond with an
answer usually the same business day we receive our quick
application from you.
How long does it take to get funded?
Normally, it takes about five to seven
business days to receive the first funding. Please remember
that there is a verification process that we perform, so the
quicker we complete this step, the quicker the funding. After
the initial funding, we fund on a next business day basis.
Funds are wire transferred to a bank account designated by
you.
How do I get information on my account?
We provide state-of-the-art, secure 24/7 online access to all
our clients, at no charge. We strongly believe that this
anytime access is a valuable tool to ensure our clients have a
clear understanding of their funding relationship with us.
What does the factoring process cost?
All of our factoring partnerships are priced on an individual
basis.
How are fees calculated?
As a general rule, we advance 80% of the AR that we purchase,
with the balance [less the professional fee] paid at
collection. We structure our professional fees on a 5 day
pricing window, not an industry standard 30-day term. This is
more equitable fee structure for you. There are no hidden
expenses. Most factoring companies charge additional fees for
credit reporting, telephone calls, reports, etc. These hidden
charges can understate the real cost and have a large impact
on your true cost.
How long is my contract for? Is there a penalty if I would
need to stop factoring?
Our agreements typically have a one year term. There are no
“exit” penalties or liquidated damage clauses as part of our
agreements.
Can you supply me with references on United Capital
Funding?
Absolutely. We would be very happy to provide you not only
satisfied client references, but also bank, legal, and
C.P.A. references for your use in the due diligence process.
We encourage you to undertake and complete a thorough due
diligence process on our firm.
How can I receive more information on the professional
factoring services provided by United Capital Funding?
We would welcome your visit to our offices at any time. We can
also meet you at your office, plant or facility at your
convenience. We can be reached via email at
mark@ucfunding.com;
telephone at (877) 894-8232, or via fax at
(727) 898-4205.
Get started today!
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