Other News
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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.
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How a Factoring Loan is NOT a Loan
Are you searching for a factoring loan? We can help you! But first, we want to tell you that a factoring loan is NOT a loan. At least, it’s not like other loans you’re familiar with. The money you get from factoring loans is YOUR money—it’s not money you’re borrowing and have to pay back. Factoring is a real business decision that can help your business operate and grow.
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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.”
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Four Reasons To Be Thankful For Payroll Factoring
What are you thankful for this year? People often think of their family, friends, and health. If you’re a business owner, there’s even more to be thankful for. This could include good employees, good customers, and a strong foundation. But we know it takes help and resources to create a successful business. Services such as payroll factoring help your business function and manage your concerns.
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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.
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:
cap·i·tal
/ˈkapədl/
noun
- 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