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.
How a Factoring Loan is NOT a Loan
Are you searching for a factoring loan? We can help you! But first, we want to tell you that a factoring loan is NOT a loan. At least, it’s not like other loans you’re familiar with. The money you get from factoring loans is YOUR money—it’s not money you’re borrowing and have to pay back. Factoring is a real business decision that can help your business operate and grow.
The Benefits of Loans
Loans can do business owners, as well as individuals and families, a lot of good. Loans can help us get homes and vehicles. They enable us to go to school and earn advanced degrees. In the business world, they help companies start and grow businesses. Depending on the situation, they can assist individuals in achieving many different goals. Loans can be a great tool, but it’s important to know they are not always the ONLY tool you need to grow your business.
The Downside of Loans
Does going to the bank give you flashbacks of going to the principal’s office? You’re sitting across a big desk from someone who can significantly impact your future. There are a lot of questions, paperwork, maybe even some words you don’t understand. Once you’re granted a loan, you then have to add those loan payments to your already long list of monthly expenses. Often, it feels like you’re just paying interest and it’s hard to see an end in sight. You might end up feeling trapped.
How Factoring Loans Can Help
When money feels tight, take a closer look at your ledgers. You’re a prudent small business owner, and you know you’re not making mistakes. Study your accounts receivables. The cash flow might be low only because you’re waiting on getting paid from clients. It doesn’t mean their payments are past-due. Maybe their billing cycles don’t line up with yours. (This is especially common in business-to-business dealings.) Or, their invoice processing timeline seems to drag on and on. (Governmental clients are notorious for this.) If this is the case, it’s time for your business to look into how factoring loans can help you.
What are Factoring Loans?
Invoice factoring can also be described as selling your accounts receivables. You pass your unpaid invoices on to a company who takes on the responsibility of getting paid. They can give you up to 80% of the money that’s due to you almost immediately. Once your clients pay them in full, you’ll get the remaining percentage minus a small fee for the service: no bank visit, no interest, no collateral. It’s YOUR money. Factoring enables you to access it.
Factoring With United Capital Funding
How to get started? Look into factoring companies. These are financial institutions that purchase your unpaid invoices. United Capital Funding specializes in factoring loans—or buying accounts receivables. We focus on providing you with intelligent capital to help maintain your success. We’ve worked with Fortune 500 companies as well as small family businesses. Our decades of experiences span almost every industry. Take the first step and call us at 877.894.8232 to get a free quote. You can also contact us online. We look forward to hearing from you.
Article Posted On: December 05, 2018