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.
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.
Types Of Funding
Small business owners have many different types of funding options. Most fall into one of two categories: equity or debt. Equity is giving someone a bit of ownership in exchange for some monetary support. Partners, angel investors, and venture capitalists are all examples of equity funding. With debt, you keep your ownership, but you’ll have to pay creditors back—often with interest. Creditors include lenders, small business loans, and banks. Depending on the agreement, crowdfunding or borrowed money can be either equity or debt funding.
You know all about your accounts receivables. They’re the outstanding invoices you’re waiting for your clients to pay. Business-to-business (B2B) and business-to-government (B2G) dealings can often take a while to get paid. It’s so frustrating because it’s YOUR money. You did the work already—you’re just waiting on getting paid for it. But did you know you can SELL your accounts receivables to gain access to your money now?
Accounts Receivables Funding Companies
Accounts receivables funding companies purchase your outstanding invoices. It starts with reaching out to get a quote on their services. The application process is much simpler than that of a bank or lender. They can pay you up to 80% of the accounts receivables value in a matter of days. After that, it’s the funding company’s responsibility to get that invoice paid. Once the customer pays the invoice, the funding company pays your balance, minus a small service fee. No loans, no interest, no headache!
How Use Accounts Receivable Funding
There are no restrictions on how your business can use those freed funds. Remember, money from selling accounts receivables was always your money to being with. Simply put, funding companies help you access it sooner. Once they purchase those invoices from you, they are no longer your worry! You’re free and funded to start your next project.
- Is there some new equipment you’ve been eyeing? Sell your accounts receivables and equip your business with new resources!
- Ready to revamp your website or start a marketing campaign to boost your sales even more? Funding companies can process your payment in a matter of days so you can begin advertising ASAP.
- Stockroom looking a little low? Increase your inventory, so you’ll be ready for the next surge in sales.
UC Funding for Your Accounts Receivables
Small businesses have long trusted our team at United Capital Funding to purchase their accounts receivables. We’ve seen every industry, every size, and every kind of invoice. To learn more about how UC Funding can help your business reach your goals, contact us. Call us at 877.894.8232 for a free consultation.
Article Posted On: December 05, 2018