AR Factoring In 2020
Factoring is a form of financing that can help companies with their cash flow issues. It allows businesses to finance their invoices to increase their working capital. Cash is the lifeblood of businesses and without it, your business can’t grow. Factoring invoices provides flexibility for businesses struggling with cash flow.
How Commercial Factoring Can Benefit Your Company
When times are hard on your business, it’s time to look for an alternative. Luckily, there are several different ways to help your business in its hour of need. Thanks to the work at United Capital Funding, we’re able to help clients get their cash and use it to improve business. But how? With commercial factoring!
Factoring Finance Mythbusting!
Remember the stories we used to hear when we were kids? Creatures like Bigfoot or stories like Hercules were myths we believed… at least for a little bit. But even though we’re older now and know better, there’s still the occasional myth that we tend to believe. Specifically with real-world actualities. And — just like with any industry—there are plenty of myths associated with factoring.
Why Are Companies Selling Account Receivable?
Every business owner encounters a situation where they need more cash for operations. You can have a superior product with large profits. However, if cash flow is bad, your business will suffer. It is possible to be successful in business but still encounter cash flow issues since good cash flow is essential to running a successful business.
Need Help With Your Cash Flow?
From time to time, businesses fall short when it comes to their cash flow. This can cause problems with payroll, business expenses, or even with client acquisitions. Most businesses have accounts receivable, but it takes time to invoice clients and then collect any outstanding debt. Well, what happens when your money runs dry?
A Business Case for Account Receivable Factoring by United Capital Funding
Accounts receivable factoring is a business tool used all around the world by many different companies. However, it is a relatively new practice in America, and common misconceptions often prevent businesses from pursuing this useful credit tool. So, what exactly is accounts receivable factoring? And how can it help your business bounce back from financial issues? Find out more with the professionals from United Capital Funding and see what we can do to help you.
What is Account Receivable Factoring?
Simply put, it is selling accounts receivables at a discount. But don’t get us wrong, accounts receivable factoring is not a loan—it’s quite different, in fact.
Our process is simple. As a client, you send us a copy of an invoice ready to be factored. Once our team verifies the invoice with your customer, we wire at least 80% of the invoice amount to your account. Our seasoned pros then act as your accounts receivables department and services the invoice. Once your client pays 100% of the invoice to our secure lock box facility, we provide you the rest of your cash - minus our fees, of course.
Easy, right? Stop waiting around for months for your money to come and get it soon with UCF.
How Does It Benefit Business?
The main benefit of factoring your accounts receivable is that you’re allowed to receive cash you already own—immediately. Instead of waiting months for payments from customers, the liquid cash flow remains consistent, which allows for day-to-day production. No longer do you have to wonder if you can afford to keep the lights on. Additionally, choosing accounts receivable factoring prevents the business from turning into a collection agency. Collecting any outstanding payments becomes the job of the factoring company—us. When you choose accounts receivable factoring, business can continue as normal with a working cash flow. Not only can you afford necessities, but also might have a chance for larger growth.
Why Is It Better Than A Traditional Loan?
At the end of the day, banks want to get their money back, no matter the cost to the individual. Traditional lenders hit companies with a variety of fees such as application, credit check, and due diligence fees. With UCF, there are no upfront or out-of-pocket costs, which saves you tons of money in the whole process. It is sometimes an uphill battle for small businesses to receive traditional loans.
Factoring accounts receivable is a smart business decision. This is because it's a part of almost a $3 trillion industry with a proven track record worldwide. Be one of the innovative entrepreneurs to take advantage of accounts receivable factoring before your competitors. Call the professionals at UCF today!
Let Us Help With Your Accounts Receivable Factoring
Get in contact with United Capital Funding today and get your money before you know it. To talk with one of our professionals, please send us an email at firstname.lastname@example.org or give us a call at 866.647.2680. We’re always happy to help, so please send us all of your questions as soon as possible.
Article Posted On: February 17, 2020