See Yourself Grow With Our Accounts Receivable Buying Company
At United Capital Funding, we understand that you want your business to prosper and we want that for you too. Our motivation is to serve you by providing growth opportunities for your business. How can we accomplish this? We provide you with cash flow to handle the day-to-day operations so you can invest in emerging areas of your industry—and for a competitively low factoring fee.
Terms To Know From A Factoring Finance Company
No matter if you’re new to business or have been around for a while, everyone needs a refresher every once in a while. And we know, financial business terms can be hard to grasp onto sometimes. But that’s why we’re here! At United Capital Funding, we’re ready to help as much as we can as your choice factoring finance company. Let’s get to it and review those terms!
Stop Waiting On The Government To Pay Your Invoices
Working with the government is good business. You know the money is coming and it’s a steady stream of work. However, your company spends weeks or months waiting on a paycheck that you earned a while ago. For some, that income is necessary to keep the lights on, let alone keep employees paid. There is a way to get a majority of this money within a week.
A Merchant Cash Advance Loan: we did the math
Like a sheep in wolves clothing, the MCA product is a troubling and rapidly growing segment of the small business online lending industry today. A small business owner must be very careful and understand the true cost APR of this kind of capital. If they don’t, they run the risk of true financial Armageddon, and a wise small business owner should seek all other reputable options for capital before selecting to get a seemingly low cost, fast MCA for their small business enterprise.
Buyer Beware! How To Do Due Diligence On A Business
In the fast-paced and interconnected world of commerce and technology, the need for businesses to protect themselves has never been greater. Businesses seeking a provider for services must start a due diligence effort before signing any contractual agreements. If not, they put their own capital or employees at risk. Merriam-Webster defines the term due diligence as research and analysis of a company or organization done in preparation for a business transaction.
4 Ways to Spot a Bad Customer
from Mark Mandula, Chief Marketing Officer
It is said that one of the secrets to running a successful business is to have only great customers and to avoid the bad ones. This makes perfect sense, but is much easier said than done.
So this got me thinking, how can we really spot a “bad” customer out of a crowd? Are there techniques that I can use as a small business owner to do this before I end up with bad apples as a client?
Years ago, I attended a presentation on a similar topic. I found four key ways to spot a bad customer before you make that final sale and I’ve added my thoughts to each point. Additional information on this topic is available, www.userlike.com.
The concept to spot a bad customer is very simple and uses only 4 items to consider. Like getting a report card in school, give a grade ranging from A+ to F to your clients and prospects.
Do not let personal bias cloud your results, focus on facts and not emotion as you embark on this grading exercise. Also consider getting the opinion of those on the front line who may have a more accurate viewpoint of the customer.
- Does your client pay you in full, when due?
- Are they constantly complaining about price or asking for a discount?
- Did you start them out at a price lower than you should have, only to be then be badgered on price?
- After adding up your costs [materials, labor, overhead, financing costs, etc.] is this a profitable client? Which then begs a more important question, do you really know your true cost out the door for your products or services? If not, why not?
- Is there the possibility of additional growth with this client? If so, when will this happen? If not, is there something else you can offer them?
- How do they compare in sales growth to others in their industry versus other clients?
- Public Relations (PR).
- Does this client look good from a PR standpoint on my marketing materials?
- Are they well known?
- Look at their client reviews, what do their customers think of them?
- Is this customer easy or a pain to do deal with?
- Do they want to build a win/win relationship with you or are they combative?
- Do they pay you in full, on time, every time? Or are they feeding you excuses why they can’t?
- If their relationship is project-based, do they constantly change orders or cause delays?
Do this with your entire client list, then rank them best to worst and identify the ones with failing scores. Also, consider looking at your best clients and rewarding them by doing the simple things, like:
- Telling them THANK YOU; who doesn’t like being told they are a VIP?
- Sending them articles relevant to their industry
- Mailing annual anniversary gift cards
- Rewarding them with special pricing and promotions when you can
So what about the ones in the middle? Should you keep them? There is no easy answer to this question.
Perhaps the more profitable approach would be to identify the things you dislike and solicit their feedback on your services. The goal is to work together to identify areas of improvement.
It is difficult to drop a customer. Before you do, make sure you have thoroughly considered the revenue ramifications and created a plan on how to communicate with them. Put yourself in their shoes and provide them adequate notice and options to make the transition smooth. Ex-clients will remember how they are treated when leaving so remain professional through the transition.
In closing, the only thing worse than an indifferent ex-client is one who is hopping mad and attempts to get even by broadcasting their anger to anyone willing to listen. With social media and the omnipresent digital footprint, their bad review could come back to haunt your business for a long time.
We've worked with small to medium-sized businesses since 1997, we've spent over 20 years helping them manage good and bad customers. If you have gaps in your cash flow and are looking for more resources, check out our financial solution.
Article Posted On: September 18, 2019