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.
Why is a Factoring Company Better Than A Broker?
What Is A Factoring Company?
Factoring is the purchase of account receivables. A third-party financial business—a factoring company—takes over your unpaid invoices by paying you the amount that’s due, minus one small fee. Factoring can be especially useful for business-to-business (B2B) or business-to-government (B2G) invoices. It is not a loan and factoring companies are not banks or brokers. It frees up money that’s already yours.
Approvals Are Easy
To qualify for loans, you must fill out what feels like hundreds of forms throughout a weeks-long process. You’re surprised they don’t want your blood type and a copy of your eighth-grade report card! Working with a factoring company is much more straightforward. Most businesses are approved in less than 24 hours and paid within a few days. The money is directly transferred into your whatever account you choose.
Your business does not have to be in financial trouble to consider factoring. In fact, most business clients of factoring companies are on solid ground and growing. With a simple online application, startups and certified-minority contractors can also receive funding.
No Hidden Fees or Interest
Since invoice factoring is not a loan, there’s no interest. There’s also no hidden fees, application fees, start-up fees, documentation fees, closing fees, or termination fees. After providing a copy of your invoice to the factoring a company, such as United Capital Funding, they immediately pay you up to 90%. Then, they act as your accounts receivables department. Once your client pays them, the factoring company gives you the remaining amount, keeping a small fee for their services. You’ll know the exact fee from the beginning—and you’ll only be charged once. Everyone is better off.
They Partner, Not Overpower
Brokers charges fees to be a middleman between businesses and lenders. Factoring companies take over your accounts receivables. When you take a loan out from a bank or other financial institution, they’re only worried about you paying it back. Factoring companies treat you like a business partner, not a delinquent child. When you work with an invoice factoring company, they pay YOU real money from their own capital. Once they pay you, you don’t have to worry about chasing your invoices—or having a bank or lender chase after you.
Your Neighborhood Invoice Factoring Company
United Capital Funding provides factoring services nationwide. They partner with small businesses in every industry. Printing, staffing, telecommunications, transportation, communication, pharmaceutical, manufacturing and those with government contracts all benefit from factoring. Selling your accounts receivables is one of the best ways to grow your business and take charge of your capital. To get an instant quote, call 877.894.8232 or fill out this short form today.
Article Posted On: September 05, 2018