How A Commercial Factoring Arrangement Can Benefit Your Business
Cash flow is vital to the success of many businesses. This is especially true for small businesses, new businesses, and businesses that are rapidly growing. This is where United Capital Funding comes into the picture. A commercial factoring arrangement with UC Funding is a type of financial transaction in which we are able to turn your B2B and B2G Accounts Receivables into working capital so that you can continue to seek new clients for your B2B and B2G business, rather than worrying about cash flow problems. If this is something that you think could be beneficial to your business, get a quick quote now or keep reading to learn more!
Event Recap: December 2018 to January 2019
United Capital Funding ushered in the New Year appearing across the southeast United States, sharing expert advice for entrepreneurs and building relationships with local businesses. Here’s where we were in December 2018 and January 2019.
How Does Factoring Work?
If you’re a business owner, you’re likely familiar with a variety of funding options—loans, borrowing, investing, credit, and grants. All these have positives and negatives, depending on your company’s specific needs. Factoring is another excellent option for businesses of all sizes in a variety of industries. Many companies find the downsides are very few compared to other funding sources. But how does factoring work?
Small Business is BIG Business in the United States
As a professional firm that provides equitably priced and structured working capital to B2B and B2G clients nationwide, we are always looking for ways to educate our partners, clients and referral sources about the ever-increasing role of small businesses in the United States. The more we understand the needs and concerns of the entrepreneurs who own and manage these businesses, the better we can serve and help them grow and succeed.
Questions To Ask Your Factoring Company
With something as important as your business’s finances, you want to understand every aspect of it. That’s why it’s always important always to ask any question you might have. Here are a few questions to ask a potential factoring company to ensure they’re the right fit for you.
Four Reasons To Be Thankful For Payroll Factoring
What are you thankful for this year? People often think of their family, friends, and health. If you’re a business owner, there’s even more to be thankful for. This could include good employees, good customers, and a strong foundation. But we know it takes help and resources to create a successful business. Services such as payroll factoring help your business function and manage your concerns.
What Is Factoring?
Factoring is the buying and selling of unpaid invoices. As a business owner, you can sell your outstanding invoices to a factoring company. They’ll pay you up to 80% of the invoice value, and then the company is in charge of getting them paid. Once they are paid in full, they pay you the balance keeping a small fee for their services. When used for payroll, factoring pays your employees while you’re waiting for customers to pay you.
Why Use Factoring?
Staffing businesses and security guard companies especially can benefit from payroll factoring. Their product is people, and these people need paying at regular intervals. Unfortunately, clients hiring people often have invoice cycles that differ from paycheck schedules. For example, your customer may only process invoices on a monthly basis. But, your employees need paychecks every two weeks. Here's where factoring can come in!
Each business has different needs and thus different incentives to use factoring. But in general, there are so many reasons to be thankful for payroll factoring:
- Perfect Timing: As we described above, different businesses pay bills at different times. Since the biggest “bill” you likely have is your payroll, this can be frustrating! Payroll factoring makes this timing issue non-existent. You can pay your employees when they need to be paid, regardless of when your clients send their checks.
- Employees Stay Happy: They still get their money at the time they expect it—at no stress to you. Happy employees make excellent employees. Keep them happy—and retained—by using payroll factoring.
- Clients Stay Happy: Your customers have limitations on when they can process checks. Especially government. You can call your contact all you want, but it’s likely they can’t change their invoice cycles either. Keep them happy by not constantly checking in. With payroll factoring, they can pay you when they can, and you can keep a happy customer coming back.
- Other Expenses: Factoring can take care of your payroll, so you spend your money to grow your business. Spend it on equipment, marketing, or supplies. Instead of being held captive by payroll payments, you'll be free to invest it back in your business. When you see the results, you’ll be thankful you did.
Payroll Factoring With UC Funding
United Capital Funding provides payroll factoring services to a variety of industries. We’re thankful to help businesses grow and succeed on a daily basis. Give us a call at 877.894.8232 for a quick, free quote. Follow us on Twitter for company updates and information. We also have a YouTube channel for users to learn more about our factoring services. Thanks for reading!
Article Posted On: November 13, 2018