Factoring is a simple, efficient and effective way for businesses to resolve issues with interim cash flow challenges. This is most often associated with B2B (Business to Business) or B2G (Business to Government) where the invoice has a 30, 60 or perhaps even 90-day terms.
At United Capital, we 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 and those new to factoring, here are some of the most commonly asked questions and brief answers to get you started.
Q: What is the difference between a factor and a broker?
A: 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.
Q: What are the fees?
A: We are commited to transarency and are proud to offer no application, start up, documentation, due diligence or closing fee. There is typically no termination fee. The only fee you will encouter with our services is the standard factor fee, which is deducted automatically, and a possible transfer fee from your bank associated with the type of transfer you determine (ACH or wire). The bank fee is not associated with United Capital Funding, our services or our fees. Please fill out a form for a free consultation to discuss fees related to your specific business type.
Q: My company is not in financial trouble; can I still use a factor?
A: Absolutely! Nearly all of our clients are in a healthy financial state and use our services to better manage its flow of capital. Factoring has become a vital part of their business cycle.
Q: What industries does United Capital assist?
A: United Capital provides factoring services to businesses nationwide. We work with companies in most industries, among those include printing, staffing, telecommunications, transportation, wholesale, communication, pharmaceutical, manufacturing and those with government contracts.
Q: Can my business qualify?
A: One of the benefits of factoring through United Capital is our flexible approach to funding. Any companies completing B2B or B2G sales with open accounts receivable may qualify for funding.
Q: What if I have a start up or new business?
A: Because 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.