Choosing An Accounts Receivable Company
As a growing business (in the B2B or B2G realm), you know it can be difficult to expand with a slow source of income, but relying on payment for accounts receivables does not mean that you have to wait for your money.
Factoring Finance Saves Businesses?
Who would have thought you’d be struggling to pay your workers even though business is booming? It’s actually a common problem many have when their revenue comes from accounts receivables. Your client’s check is coming months from now, but your employees need their money now!
Florida-based commercial finance firm unveils innovative platform
Commercial finance firm, United Capital Funding, unveiled a new reporting platform this month to its clients. The reporting platform, Cadence, is the latest addition of cutting-edge features that mark the finance firm’s continued commitment to client-centric offerings.
Utilizing Commercial Factoring In B2B Companies
As a B2B, or a business providing a product and or service to other businesses, you rely on payments being made on time. But the reality is that sometimes you can be waiting for payment for who knows how long. This isn’t an ideal strategy for a growing company.
Looking For An Example Of Factoring In Finance?
For some, it can be difficult to understand the need for factoring. At United Capital Funding, we found it important to provide an example for everyone.
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.”
A Capital Definition
We all know about capital cities and capital letters. But what is “capital” when it comes to the business world? We looked it up in the dictionary. Which of course—because this is the 21st century—means we Googled it:
- wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.
synonyms: money, finances, funds, means, assets, wealth, resources
Capital Funding For Small Businesses
All businesses need money to get started. They need the funds to start and grow. Acquiring capital can come from many different avenues. You have to decide which is right for you and your business.
- Borrowing: Your family and friends might believe in your business and offer to lend you money. It can be such a confidence boost, but borrowing money can make enemies out of your friends and family. Risking those relationships can be well, risky.
- Investors: Investors exchange money for a percentage of company ownership. It’s more formal than handshake borrowing and requires some paperwork. But you might not want to compromise your vision with another person.
- Loans: Most banks can give small businesses loans to get started. They can have long application processes and often require collateral. You’ll be making installments of payments for the length of the loan.
- Grants: Depending on your business, you might qualify for federal or state-level grants. They are even privately funded grants out there in the world. On the downside, they can take a long time to come in. And the paperwork can be very time-consuming and confusing.
- Credit Cards: If you don’t have the cash on hand, you can charge your initial business expenses. The scary part is that you could keep accruing debt—you don’t want those interest charges to get the best of you!
- Factoring: Many small businesses benefit from factoring. You need to have some invoices to factor, so this works if you already have conducted some business.
Small Business Factoring
Small business factoring might be your best choice for capital for small businesses. If you sell to other companies or the government, factoring could be especially beneficial. Business-to-business (B2B) and business-to-government (B2G) companies often use accounts receivables factoring. Factoring means businesses sell their yet-to-be-paid invoices to a factoring company. The factoring company can pay up to 80% of the invoice amount right away. They take over the responsibility of the invoice and pay the business the rest (minus a small fee) once it’s settled.
United Capital Funding
Avoid complicated application processes, interest charges, and borrower’s guilt. Learn more by browsing our frequently asked questions. Then contact United Capital Funding for more information at 877.894.8232. You can even get a quick quote online. Let’s get your small business the capital it needs to succeed!
Article Posted On: November 13, 2018