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? What happens when your accounts aren’t providing you the cash flow your business needs to grow? That’s when an accounts receivable financing company like United Capital Funding steps in.
Consider Using An Accounts Receivable Company
So why do cash shortfalls happen? It all depends on your business’s cash conversion cycle. Most businesses pay their employees on a bi-weekly or monthly basis. There are also other expenditures that add up month after month. These payments—along with business loans—drain cash, leaving companies in over their head. Businesses often struggle with debt while they still have unpaid accounts. As a result, these cash flow problems arise due to the lack of liquidity in its accounts receivable.
It’s not always possible to slow down business loans or other creditor payments. Fortunately, business owners can generate much-needed cash by selling its accounts receivable. Selling an invoice is known as AR factoring. AR factoring generates quick cash for your business in exchange for fees paid to the AR factoring company. And that’s what we do! United Capital Funding is an accounts receivable company that uses AR factoring to get you the money your business needs to relieve its cash flow strain.
Account Receivable Factoring
Account receivable factoring isn’t as complicated as it sounds. In fact, it’s a relatively simple process. Here’s an example of how AR factoring works:
- You complete an order for your customer, so you invoice them for $10,000 due in 30 days.
- You send a copy of the invoice to your customer and to United Capital Funding
- After verifying the invoice, United Capital Funding will send an ‘advance’ to your company. The advance is typically 80% of the full invoice value – $8,000 and the remainder is held in the ‘reserve’.
- United Capital Funding services the invoice and your customer sends the full invoice payment ($10,000) to a secure lockbox.
- We process the final payment and send the reserve to your company, less our fee ($2,000, minus our small fee).
Accounts receivable factoring with United Capital Funding is fast, simple, and hassle-free. All you have to do is fill out a schedule of invoices you wish to sell. Upon receipt of the invoice schedule, UC Funding will fund up to 80% of the total amount.
Contact Our Account Receivable Company Today!
UC Funding can help your businesses cash flow when you get in a tight spot. We know the processes might seem daunting, so we are here to answer any question you have. Don’t be afraid to let your business grow! When you run into cash flow issues don’t hesitate to give us a call. Send us a message or give us a call at 866.647.2680. When you’re ready to begin, fill out an application with us. We’re excited to work with you and your business!