The History of Factoring From A Trusted Factoring Company
So, you know about how the factoring industry operates today—but where did it all begin? Learn about the history of factoring from the specialists a United Capital Funding. We’re the factoring company you can trust with your capital.
From Mark Mandula: Thoughts on the COVID-19 Pandemic Part III
The current COVID-19 crisis is a tragedy that includes many facets; a political one, an economic one and most importantly a human one. It is a story rapidly unfolding without a clear answer. Perhaps the only clear aspect of COVID-19 is that the impact will spare no one, country, industry or location.
From Mark Mandula: Thoughts on the COVID-19 Pandemic Part II
As the sun rises today, we awaken to the reality of the financial power COVID-19 has on our financial markets in the United States. Even after a series of unprecedented financial moves by the Federal Reserve to help mitigate some of the financial fallout from the virus, all major stock indices recorded significant losses yesterday. And it appears that, absent some miracle occurring, short term prospects for the markets in the United States are not promising.
An update to our clients on COVID-19
We understand that there is concern surrounding coronavirus disease 2019 (COVID-19). We want to provide a simple update to let you know that our firm’s priority is keeping our employees safe while continuing to deliver high quality service.
From Mark Mandula: Thoughts on the COVID-19 Pandemic Part I
As the sun rises today, we are at what appears to be the very early onslaught of the virus in the United States. Having ravaged China and subsequently Italy and Spain, it appears that the United States is next.
Bank Loan vs Invoice Factoring
Entrepreneurs commonly ask us how invoice factoring differs from a traditional bank loan. We understand the language and benefits can seem tricky so the team at United Capital Funding (UCF) is here to help you better understand the differences.
The Basic Difference
Invoice factoring, also called accounts receivables factoring, comes down to three steps:
- UCF reviews the invoice you sent to a customer. Once verified, UCF advances a large percentage (typically 80%) of the invoice amount to your company.
- Your customers sends the full payment amount to UCF.
- UCF processes the payment and sends the remainder (typically 20%) back to your company, less our small professional fee.
When a bank offers you a loan, they're primarily concerned with making back the amount you owe plus accumulated interest. If the bank approves your request, you're entered into a complicated process. Banks aren't on your side and typically only consider the financial reputation of the company and its owner. Both of which are likely not desirable in the case of new businesses and its owners.
That’s where invoice factoring differs. When you come to an invoice factoring firm for a financial jump-start, we “factor in” all the invoices you send to your customers. In other words, we fund companies that have creditworthy customers. We know that if you're making money, you're a trusted partner.
Support Your Team
As the lifeline of your new company, employees need to be paid on time. But while you’re waiting to receive money from your customers, your payroll deadline may come and go, leaving your employees with an unreliable income source. Our payroll factoring services allow you to meet payroll needs by funding invoices from approved customers as soon as they’re verified, giving you a reliable source of capital that you can count on for payroll.
Get Your Money’s Worth And More
When you’re starting a business, you often need an entire set of resources—in addition to faster capital—to grow and profitably manage your business. Our firm provides many of these key resources at no extra cost to your business:
- Credit investigation – we help you predict a customer’s ability to pay promptly, at no cost. This will help you avoid slow-paying and nonpaying customers.
- Save time - our seasoned professionals can reduce the payment time of your outstanding receivables.
- Accurate online reporting - we provide complimentary detailed accounts receivable aging and status reports through a secure online system that is available 24/7.
Unfortunately, a traditional bank loan doesn’t include many of these helpful resources. With the help of UCF, we allow you to focus your time and talents on managing and growing your business. These tools are part of how we help your business become a success.
Invoice Factoring Articles
Invoice factoring is a great strategy for startup businesses and our team is ready to help! Call us at 866-647-2680 with any questions or apply online to get started immediately.
Article Posted On: March 13, 2020