Factoring FAQ's

 

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.

 

 

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.

 

 

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 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

 

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 Corp. 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. In fact, you can factor only a “larger” account, if you desire. 

 

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 funding process?

 

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.

 

How long does it take to get funded?

 

Not as long as you might think. Normally, it takes about five 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.

 

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.

 

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.

 

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.