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What is Factoring?
Factoring is the purchase of valid Commercial
Accounts Receivable [AR] for cash.
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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. |
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What kinds of
businesses does United Capital Funding Corp.
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.
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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.
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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. |
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Don’t I have to be
in business for 3 years or more, like the Bank
said?
No, United Capital Funding Corp. has very
successfully funded many startup 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. |
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Don’t I have to be
in business for 3 years or more, like the Bank
said?
No, United Capital Funding Corp. has very
successfully funded many startup 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. |
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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. In fact, you can factor only a
“larger” account, if you desire. We have
flexible debtor concentration policies. |
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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. |
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Do I have to pay
an Application Fee? Start up fee? Closing costs?
Documentation fee? No.
United Capital Funding Corp. 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 Corp. there are NO hidden
fees of any kind.
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What information
do you need to start funding process? What does
it cost to apply?
Click here to see our simple and “user friendly”
Application. It usually takes less than 5
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. |
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How long does it
take to get funded?
Not as long as you might think. Normally, it
takes about three 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. |
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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. Reports (for existing clients) |
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What does the
factoring process cost?
All of our factoring partnerships are priced on
an individual basis. |
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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. |
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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.
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Is United Capital
Funding Corp. 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. |
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Can you supply me
with references on United Capital Funding Corp.?
Absolutely. We would be very happy to provide
you not only satisfied client references, but
also bank, legal, funding 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. |
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How can I receive
more information on the professional factoring
services provided by United Capital Funding
Corp.?
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 is (727)
898-4205.
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