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 At United
Capital Funding Corp., we always try to educate prospective
clients about the numerous positive benefits of the
professional financial services that we have provided clients
over the past 10+ years.
Fact:
Factoring can be, and is used by businesses of
all sizes; not only in the United States, but internationally.
According to Factors Chain International¹, total factoring in
the United States in 2006 was over $112 Billion. This funding
tool was used by businesses of all sizes.
While it is true that factoring used to be exclusively by
large businesses, today more small businesses than big
businesses are factoring today. Almost any business, including
a start up enterprise can receive funding through factoring.
Factoring is also not just for companies experiencing cash
shortages. Most astute business managers use it in long-term
planning and in conjunction with other revenue generation
methods.
Myth #2: If you factor, your customer will get “nervous”
about your financial condition. As a result, you may lose
their business.
Fact: In the 10 years of serving our clients, this has
never happened at United Capital Funding Corp. In fact, the
reality is just the opposite. The fact that your business
[whether it is a start up, growing exponentially, or a
“mature” firm] has been approved for outside funding can be
used to cement the relationship you have with your clients.
With funding in place, you can, perhaps for the first time
begin to assertively market your products or services to your
existing clients. You can also feel confident in your ability
to grow, based on the fact that you will have access to
capital to meet the needs of your clients, even with very
short notice.
The end result of establishing a professional factoring
relationship will be that your customer will be more likely,
not less likely to continue to work with you. They will not
seek another vendor to start a new relationship with, and it
has been our experience that your average sale/transaction
will increase once funding has begun with your long term
customers. Our ability to preapprove clients and prospects
allows you to significantly increase the size of your sale to
any one client; rather than relying on your personal credit or
resources to support the AR outstanding for a potentially long
period of time.
¹Factor Chain International is a large network for Independent
Factoring Companies around the world. Refer to: http://www.factors-chain.com/ppu/87 |
