Your Guide To Selling Receivables in 2018
When your business is strapped for cash, it might seem like taking out a loan is your only option. Loans have a long approval process and charge you interest when you go to pay them back. Luckily there's a better way to get cash for your business in the short term without having to take out costly loans. United Capital Funding can help turn your unpaid invoices into working capital in no time. It might sound complicated but that's why we put together this guide to selling receivables in 2018.
How Accounts Receivable Financing Companies Can Help
Accounts receivable financing at first glance sounds like a tricky topic. While it can be complicated it boils down to a simple fact that companies often need more cash than they have on hand. Accounts receivable financing helps companies who need their invoices paid so they can pay their employee and have cash on hand for miscellaneous company business. This type of financing is very beneficial to companies who need working capital and can’t afford to wait until their invoices are paid, or something never paid. United Capital Funding can help you turn your invoices into working capital so you can continue business operations.
Government Invoice Factoring in 3 Easy Steps
Landing a government contract for any business can be exciting. It means a steady stream of income to support your business. But, because the nature of these contracts is very complicated, it usually takes some time before you will see results. That’s where government invoice factoring comes in. At United Capital Funding, we provide working capital for your business so that that you have the money to operate while you are waiting for your invoices to be paid. We are a simple way to turn your accounts receivable into working capital for your business.
A Business Case for Account Receivable Factoring
Accounts Receivable factoring is a business tool used all around the world. However, it is a relatively new practice in America, and common misconceptions prevent businesses from pursing this credit tool.
What is Account Receivable Factoring?
Simply put, it is selling Accounts Receivable at a discount. Accounts Receivable factoring is not a loan; the business sells its invoices and receives cash. Then, the factoring company has the right to receive future payments from the client.
How Does It Benefit Business?
The main benefit is that factoring Accounts Receivable allows the client to receive immediate cash. Instead of waiting on payments from customers, the liquid cash flow remains consistent, which allows for day-to-day production. Additionally, factoring Accounts Receivable prevents the business from turning into a collection agency. Collecting the payments becomes the job of the factoring company. Business can continue as normal with a working cash flow.
Accounts Receivable factoring is different from a traditional bank loan. This makes it an appealing option for businesses that are reluctant to sign a personal guarantee on a bank loan.
Why Is It Better Than A Traditional Loan?
Banks are interested in getting their money back, no matter the cost to the individual. Traditional lenders hit companies with a variety of fees such application fees, credit check fees, and due diligence fees. With United Capital Funding, there are no up front or out-of-pocket costs, which can save tons of money. It is sometimes an uphill battle for small businesses to receive traditional loans.
Factoring accounts receivable is a smart business decision, and it is part of almost a $3 trillion industry with a proven track record worldwide. Be one of the innovative entrepreneurs to take advantage of accounts receivable factoring before your competitors.
Rights You Give to the Factor as Part of a Receivables Financing Agreement
One benefit of receivables financing is passing off some responsibilities and internal workload to the factoring company. However, it’s important to make it clear what your business will do and what the factoring company will do. Make sure you understand what rights and actions you are assigning to the factoring company. With your permission, the factoring company will do things in your name. If there is anything that makes you uncomfortable, negotiate that up front. You can also keep some rights for your business.
Find Out What You Are Signing Away
First of all, get everything in writing. Make sure no agreement or responsibility is given verbally. This can help eliminate confusion and potentially uncomfortable situations. Also, getting it in writing provides a clear-cut list for your business and the factoring company.
Now, it’s time to tackle what rights and responsibilities are now that of the factoring company. First, determine if they have the right to receive, take, endorse, assign, deliver, and accept deposit proceeds. Do they have these rights on all accounts, or only factored Accounts Receivables? Determine if the company has the right to file mechanics liens and related notices.
Also, figure out if the factoring company can change the address for delivery of mail. Can they open mail? These are common practices for factoring companies, but still make sure you are comfortable with them. If you allow this, do you want this right to only apply to Accounts Receivables or all your accounts? Another thing to thing about is if they file a claim. Should they file claims under payment bonds?
Determine Collection Rights
Professional collection services can be a significant benefit of receivables financing. Figure out if you want your factoring company to communicate directly with your clients. Also, you can outline how you would like the factor to communicate when collecting invoice payments. These are your clients, so you want them treated with the utmost respect and consideration. A factoring company should not be damaging your reputation with clients.
Once again, do you want them to collect from all accounts or only factored Accounts Receivables? When they begin invoice collection, specify how you want them to notify the client. Determine how they should go about contacting the client and how often.
A factoring company and receivables financing can help you with more than just cash flow. A factor can provide a variety of services that can speed business production, and take responsibilities off your hands. You can learn more about that here. However, if you are uncomfortable with a factoring company handling some of these responsibilities, negotiate that upfront. All of these questions might seem like a lot to address, but it’s worth it when you can negotiate a perfect agreement with receivables factoring.
UCF Major Sponsor Discover the Power Event 2014
SAINT PETERSBURG, Fla., United Capital Funding Corp., the leading provider of professional Accounts Receivable based funding and credit management solutions in the United States, announced today is will be a Major Corporate Sponsor at the upcoming Tampa Bay Research Institute [TBRI] “Discover the Power” Event to held on Thursday, April 24, 2014 from 5:30 to 7:00 PM at 10900 Roosevelt Boulevard North, Saint Petersburg, Florida.
TBRI was established in 1981 as the first 501 (c)(3) not-for-profit biomedical research organization of its kind in the State of Florida, and since then TBRI scientists have pioneered the discovery of the relationship between virus infections and cancer. As a result, TBRI has been awarded many national and international patents and to the commercial release of an immune enhancing dietary supplement.
Akiko Tanaka, Ph.D., President and Cofounder of TBRI commented, “We are very happy to have members of the general public, medical, educational and research communities come and attend the “Harness The Power” Discovery Event in April.” In addition, she noted that “At TBRI, we are currently building upon a recent breakthrough that we believe will result in the development of a number of immune modulating drugs useful for the treatment of diseases ranging from AIDS, Allergies, Alzheimer’s and Cancer. We look forward to discussing this amazing progress at the Discovery Event on April 24, 2014.”
“We are honored to be able to support the amazing work done by TBRI”, commented Mark Mandula, Managing Partner of United Capital Funding. Mandula also noted that “We fully support the mission of TBRI and know that their efforts are truly valued on a local, regional, national and even international basis.”
Over the past 17 years, United Capital Funding and its employees have contributed nearly $500,000 in local, regional, national and global giving. In addition to these direct financial contributions, United has made significant pro bono contributions of time and United Capital employee skills to support their Corporate Citizenship program. Some of the charities supported by United include TBRI, JFCS, the Wounded Warrior Project, Inc., Society of St. Vincent de Paul, Tampa Bay Watch, CASA, The Salvador Dali Museum, The Morean Arts Center, The Chihuly Collection, The Museum of Fine Arts, Police Athletic League, The Ronald McDonald House Charities of Tampa Bay, Heroes of the St. Pete Police, Derrick Brooks Charities, Inc., Community Service Foundation, Suncoast Hospice, Clothes to Kids, Inc., Wilderness Trail, The First Tee of Saint Petersburg and a wide array of other organizations.
About Tampa Bay Research Institute “TBRI”
TBRI is dedicated to the study, cure and prevention of cancer and chronic infectious diseases. TBRI is similar to a number of other research institutes in the United States and abroad in that TBRI is interdisciplinary in nature and focused on biomedical research. However, TBRI is different in that TBRI is dedicated to exploring unique biological pathways of the human immune system as they relate to several diseases, rather than maintaining a focus on a single disease. In addition, TBRI provides valuable community health education that is backed by the latest Biomedical Research.
TBRI is an independent biomedical research institute. TBRI’s independence allows for all biomedical Research to be approached utilizing a neutral, science-based foundation. Since its formation in 1981, TBRI has strongly believed that this flexibility has enabled TBRI to rapidly focus resources on promising areas of scientific study rather than on other, non-scientific requirements sometimes imposed by outside or industry funding sources.
The independence also has allowed TBRI to serve all institutions and colleges that require assistance or cooperation, upon request. TBRI is not formally affiliated with any university or hospital; however, TBRI actively collaborates with universities and hospitals throughout the world as a scientific resource. Over the last 33 years, TBRI has conducted scientific collaborations with a number of prestigious institutions, including All Children’s Hospital, Eckerd College, Emory University in Atlanta, the Howard Hughes Medical Institute at UCLA, Johns Hopkins University in Baltimore, the Kitasato Institute in Japan, the Moffitt Cancer Center at the University of South Florida (USF), North Carolina State University in Raleigh, St. Pete College (SPC), Suncoast Hospital in Largo, Tampa General Hospital, the University of Chicago, and the University of Montreal in Canada. In addition, TBRI has trained in excess of 100 Undergraduate and Graduate students from the U.S. and abroad, as well as a number of postdoctoral fellows.
About United Capital Funding Corporation
United Capital Funding Corporation provides Intelligent Working Capital via factoring, credit insurance coverage and efficient Accounts Receivable management solutions to clients nationwide. These professional services allow clients to strengthen their cash flow, streamline internal operations and assist them in competing successfully in the current challenging economic environment. United recently exceeded $2+ Billion in funded and managed relationships since its formation in 1997. Starting with a single Florida based client, United Capital Funding now serves clients in 29 states, and is based in Tampa Bay, Florida. United also has a regional offices in Nashville, Tennessee and Charlotte, North Carolina.
United Capital Funding is the fiscally savvy alternative for healthy companies in the staffing, government, manufacturing, service, distribution, technology and professional services sectors looking to profit from the flexibility and speed of partnering with a privately held, well capitalized source. Additional information on the specialized business financial services provided by United, including factoring, Accounts Receivable management, and working capital are available online at their website; www.ucfunding.com
Article Posted On: April 05, 2014