Factoring Government Contracts: How It Works
You finally landed a government contract! This is great news for your business—until you’re left waiting for the payment to actually roll in. Forget waiting! There’s another option available.
Selling Receivables Is Great For Your Business
Starting, maintaining, and growing a business is hard work. It can be even harder when you’re left waiting for months for the money you’re owed. Time is money, so what are you meant to do?
Event Recap: February to March 2019
Commercial finance firm United Capital Funding was active in the community over the last few weeks, engaging with the community and providing resources to local small business owners and entrepreneurs. Here’s where we were in February and March
Medical Staffing Factoring Can Solve Your Payroll Problems
As a staffing company, timing can affect your ability to make payroll. Medical staffing factoring could easily and quickly solve your funding problems.
Capital Funding From United Capital Funding
Looking for capital funding for your small business? Look to United Capital Funding! It’s an uncomplicated funding source that allows you to stay in control.
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 Factoring Company 4-1-1
First off, we’ll explain what a factoring company is. Factoring is when a business sells its accounts receivable to a third-party factoring company. The factoring company charges a small fee and takes over the payment collection entirely. Businesses often find this useful to meet immediate cash needs. Think of it this way: money tied up in accounts receivables and outstanding invoices is YOUR money, a factoring company just helps you access it quicker.
How does Factoring Work?
Factoring is not a loan, it’s a way to get your money sooner. It starts with contacting a factoring company to see if you qualify and get a quote for their services. Then, you literally sell your selected accounts receivable to them. They pay you 80-90% of the invoice in cash, within five days. The factoring company is then responsible for collecting the payments, you don’t have to worry about it anymore! Once the invoice is paid in full to the factoring company, they give you the remaining 10-20%, keeping a small fee for their service. There are no interest charges, no hidden fees, and no risk. Because it’s your money!
Who Uses Factoring Companies?
Businesses of all sizes benefit from factoring. Small businesses can sell their accounts receivables to free up much-needed capital. They then can use it to fund marketing, payroll, or new equipment during growth periods. There are some industries in general that find it especially beneficial. If a business’s billing cycle differs from its customers, factoring can fill in the gaps. This is perfect for government contractors and business-to-business (B2B) service providers. Staffing businesses and security guard companies can also benefit from payroll factoring for similar reasons.
UC Funding: Intelligent Working Capital
If you think selling your accounts receivable could be a good strategy to grow your business, contact us at United Capital Funding. Our fees tend to be significantly lower than other companies, and we can move quickly. Call us as now at 877.894.8232 to see if you qualify and we can give you an instant quote. You can also contact us online. Let us be a partner helping you to achieve your business goals.
Article Posted On: October 02, 2018