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?
Capital Funding From United Capital Funding
Looking for capital funding for your small business? Look to United Capital Funding! It’s an uncomplicated funding source that allows you to stay in control.
Capital Cities. Capital Letters. Capital Funding.
Business capital refers to the money a business requires to do its business. Whether its selling good or services, it takes capital to fulfill customers’ needs. For small business and those just starting, financial resources can seem difficult to come by. Capital is needed to fund employee payroll, inventory, equipment, and advertising.
You Need Capital To Start A New Business
There’s a timeline most people follow when starting a new business. You first have an idea of a product or service you’d like to sell. You might start by doing some work out of your home. After a few customers, you need more space, more inventory, or more resources. You might even need to hire employees. All of those take money. Which in this case, can be called capital. If you feel like your cash flow is low, look to your books. Are you waiting for clients to pay their bills? Then factoring could be the answer to your capital funding prayers.
Factoring For Capital Funding
How does factoring work? To define it succinctly, factoring is selling your accounts receivables. A factoring company—such as United Capital Funding—purchases your outstanding invoices. You’ll get up to 85% of their value right away. The factoring company then takes over the responsibility of getting them paid. Once they’re paid in full, you receive the balance minus a small service fee. It’s easier than a loan, and it doesn’t require you to forfeit any control.
How Companies Use Capital Funding
How you use your factoring depends on your industry and your specific needs. Capital funding can help you write paychecks, buy equipment, or advertise. Why choose factoring with United Capital Funding? To learn more, check out our testimonials. Over the decades, we’ve had thousands of successful funding partnerships. Here are what some of our client partners have said about working with us.
The CEO of a Texas security guard company said, “UCF is a great funding company. It understands the needs of their clients and always available to help. I have and will continue to recommend their services to others that I come into contact with.”
When asked about working with UC Funding, a government contractor in Virginia had lots to say. “Nothing but great things to say about your customer service and guidance throughout the process. You give us the confidence to go after more work opportunities and grow our business.”
The owner of a California transportation company said, “It was a simple application and a no-nonsense, straight-forward approach. They genuinely seemed eager to help.”
“It’s A Capital Idea!”
To learn more about factoring or ask some questions, contact us! You can apply online to start your process or call us at 877.894.8232. You can also follow us on Twitter and Facebook to stay in-the-know on all things factoring.
Article Posted On: March 19, 2019