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 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