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.
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