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?
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. So, our team is here to help you out to discover the truth about factoring really by busting some myths. Discover everything you need to know about factoring finance with United Capital Funding.
Myth #1: Factoring Is Only Meant For Start-Ups
Because factoring is a great strategy for start-ups, many seem to think that you can only factor your finances if your business is small. But that’s just not true! In actuality, a good number of our clients are large and financially sound. Perhaps they just enjoy the convenience and ease of factoring their receivables!
Myth #2: My Contract Will Be Something I Cannot Control
Again, not true! When you make an agreement with UCF, we go out of our way to ensure your plan is exactly as you want it to be. After you apply, our specialists will get in touch to begin an agreement that both parties are happy with. Factor your finances for as long or short as you wish.
Additionally, you don’t have to factor all of your invoices, either. Factor as many as you like for as long as you prefer! Are you ready to begin your UCF journey?
Myth #3: Factoring And Loans Are The Same
While similar, factoring is not the same as a traditional bank loan. Specifically, in the way bank loans’ interest keeps you hostage for much longer than you deserve. Loan expenses add to your already long list of bills and can impact your business if money becomes delayed.
But when you factor as a client of UCF, you can get the money as soon as the invoice is verified. And it’s all your own money, minus our small fee and the ACH/wire fee from your bank. Now, that sounds much better than a stuffy loan, don’t you think?
Myth #4: Factoring Is Going To Hurt My Relationship With My Clients
Our audience tends to think factoring shows others that they’re desperate for money, or that we’re sent to shake down customers for payment. But the truth is, many people already know about invoice factoring. And for those who don’t, we’re more than happy to help them understand.
As we said before, many of our clients are financially stable. Factoring is an option for anyone who would like that stability. When you work with us, we operate as your AR Department. Even though your clients are dropping their payment off at our secure lockbox facility, they’re still paying the invoice that you sent them, in its entirety.
Begin Factoring Your Finance With UCF!
Know that you know more about how factoring receivables works, it’s time to apply to United Capital Funding. Do you have a question about our process first? No problem. We’re ready to lend a helping hand. Give us a call at 866.647.2680 or send us a message online and we’ll follow up with you shortly. Let’s help you get the cash flow you really deserve!
Article Posted On: June 10, 2020