What Are Accounts Receivable Funding Companies?
When you’re managing your own small business, it seems there is no end to the amounts of expenses it requires. You know the phrase, “you have to spend money to make money,” but man! Sometimes it feels like there isn’t an end in sight. How do you get funding to take your company to the next step? You’ve heard of lenders and investors, but what about accounts receivable funding companies? They could be your business’s best option to take itself to the next level.
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.
Why Small Businesses Are Thankful For Capital Funding
When you want to start a small business many of the initial decisions and plans can be fun! It can be fun to think of a business name and pick a logo. You’re passionate about it. You’re looking to solve problems for your customers. You have a mission you want to achieve—it’s all so inspiring! But starting a small business takes more than passion and inspiration. It takes resources, time, and something called “capital.”
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 A Factoring Company?
There are many organizations out there claiming to help you better run your business. Get-rich-quick schemes and snake oil salesmen are everywhere. Your business is too important to risk with false claims or bad deals. But sometimes, you are in need of increasing your cash flow. You might feel like your only options are selling equipment, letting employees go, or taking out loans. Before you take any of those steps, learn more about what a factoring company can do for you.
The 2018 Guide to Selling B2B and B2G Accounts Receivables Successfully
If you’re not careful, you can pretty quickly find yourself being sucked into selling your B2B and B2G AR or “receivables” to the wrong company. The relationship that exists between you, the one selling receivables and the company that’s buying them is one that is crucial--you have to get it right if you expect them to produce results for you.
The 2018 Guide To Selling Receivables
Step 1: Make Sure You Need This
There are a few items you need to figure out before you even really get started. Firstly, do you really need to sell your B2B and/or B2G receivables? Are you in a situation where selling receivables won’t actually cover the full scope of your indebtedness? If so, this might not even be the right solution for you. While we’re always eager to educate and talk to B2B and B2G entrepreneurs who are interested and pleased to be able to offer our insights, it might end up being a waste of your time if you do not have B2B and/or B2G receivables capable of covering (or nearly covering) the amount you owe to other parties as evidenced by a UCC filing.
Step 2: Make Sure It’s A Perfect Fit
There are a wide array of invoice factoring or purchasing companies out there. You need to make sure that the one you’re talking with is a perfect fit for your needs. If you’re a marketing agency but the company you’re talking with has only ever worked for IT firms, then it might be a poor fit and you should reconsider. UCF handles a number of different industries, including:
- Information Technology (IT)
- Government Invoices
- Security Guard
- Service Business
We’ve worked with a number of other industries, but this is where we feel most comfortable. Ask us for references and we’re happy to supply you with multiple companies in your industry who will explain how our proven, professional process works and how it has helped them.
Step 3: Do A Lot of Due Diligence and Research
Not just on which firm you’ll use, but also on how you’ll use them. Just because you’re selling your B2B and/or B2G receivables doesn’t mean all of them should be sold. Ask a lot of questions, like these:
- How long does it take to get funded from when I submit a B2B and/or B2G receivable?
- Is there a minimum volume or fee that I will be charged?
- Do I pay an extra fee for a “rush” funding?
- How much will I be charged when I get funding, either via wire or ACH?
- What if I don’t like the service and can I leave without a penalty or early termination fee?
- Is the firm I am thinking about using the “funder” or just a broker who is charging me a marked up deal?
There are plenty of questions you should ask yourself before jumping in with both feet. At UC Funding we only want to serve you once every single one of your questions has been answered and you are 100% comfortable.
Step 4: Get the Ball Rolling!
Even if you’ve decided to work with a company like us, you don’t want the process to drag on for forever. We know your time is valuable and we can give you a pass/go answer usually in one business day. This allows you to get back and run your B2B and/or B2G business and not continue to worry about cash flow. We can lower your stress level and help you grow profitably.
Step 5: Get A Quick Quote
UC Funding offers a quick, easy, no cost painless way to get started. Get a quick quote to see if UC Funding is the right solution for you. We can walk you through our process and what it looks like. We hope to hear from you soon!
Article Posted On: July 01, 2018