Factoring Frequently Asked Questions

Factoring is designed to be a simple, efficient and effective way for businesses to resolve issues with interim cash flow problems. This is most often associated with B2B (Business to Business) or B2G (Business to Government) where the invoice typically has a 30, 60 or perhaps even 90-day terms.

At United Capital, we are able to provide factoring, or the purchase of Accounts Receivables in advance of payment by your customers. We provide the cash within just a few days, directly transferred into the account of your choice.

To help our customers or those new to factoring, here are some of the most commonly asked questions and brief answers to get you started.

What is the difference between a factor and a broker?

United Capital is a factor. We use our own capital and resource to purchase Accounts Receivable from our clients. A broker doesn’t actually provide funding. Instead, the broker works as a middleman, connecting businesses with lenders for a fee.

What are the fees?

We don’t have any fees and you will never find any hidden fees in the factoring services we provide. This means no application, start up, documentation, due diligence or termination or closing fees.

My company is not in financial trouble, can I still use a factor?

Many companies use factoring on a regular or as-needed basis. In fact, this is a very smart way to get short-term funding to cover the costs of payroll, inventory, business expansion or to hire the staff needed to take on new contracts and work.

What industries does United Capital assist?

United Capital provides factoring services on a national scope. We have worked with companies in most industries including printing, staffing, telecommunications, transportation, wholesale, communication, pharmaceutical, manufacturing and those with government contracts.

Can my business qualify?

One of the benefits of factoring through United Capital is our flexible approach to funding. Companies completing B2B or B2G sales with open Accounts Receivable may qualify for funding.

What if I have a start up or new business?

As this is not a loan United Capital is able to offer funding without the requirements of a bank. We have provided funding for major companies with millions of dollars a month in sales to new start ups and 8(a) Certified Minority Contractors with a simple application process completed online.