How A Commercial Factoring Arrangement Can Benefit Your Business

Estimated reading time: 3 minutes

So, What Exactly is Factoring?

Cash flow is vital to the success of many businesses. It’s especially important  for small businesses, new businesses, and rapidly growing businesses. Cash flow concerns are exactly where United Capital Funding comes into the picture. A commercial factoring arrangement with UC Funding is a type of financial transaction in which we turn your accounts receivables owed by another business or government entity into working capital. Freeing up your capital means you can continue to seek new clients for your B2B (business-to-business) and B2G (business-to-government) business, rather than worrying about cash flow problems.

How Does It Work?

Although factoring may sound convoluted and technical, we guarantee that it is a hassle-free process. No in-depth financial knowledge is required! Here are the basic steps to the commercial factoring arrangement process for active clients (learn more about our application process here)

  1. Provide a copy of your invoice to United Capital Funding.
  2. United Capital Funding verifies the invoice with your customer, then pays you 80-90% of the invoice (advance) in cash.
  3. United Capital Funding acts as your accounts receivables department and services the invoice.
  4. Once your client pays 100% of the invoice to United Capital Funding, United Capital Funding pays you the 10-20% balance less a small professional fee (reserve).

To see a visual representation of the factoring process, click here. Are you still questioning whether a commercial factoring arrangement with UC Funding can benefit your business? The process’s ease and simplicity should give you the confidence to take the next best step for your business. Don’t struggle to pay for expenses while you wait for customers to pay. Get faster access to capital for your business’s future.

How We Can Serve You

We service many industries, but like any business, we have our “cup of tea” industries of specialization. Some of these include:

  • Information Technology: Our commercial factoring expertise can help you determine work agreements that match the company’s creditworthiness, retain top professionals, and hire new staff to encourage new work opportunities.
  • Government: Commercial factoring gives you confidence in a situation where your client—the government—defaults on their payment. Government payments can also be delayed based on election years, holidays, and government shutdowns
  • Service Business: Commercial factoring provides cash flow to supplement the customers who are on 60 or 90-day payment terms. Factoring allows for stability when customers do not pay on time and saves your business time spent pestering late payers.
  • Security Guard: UC Funding’s commercial factoring helps with the entrance into new markets and locations, freeing up staff from accounts receivable to focus more on your clients and to smooth out cash flow highs and lows.
  • Manufacturing: With commercial factoring, you can buy more equipment, upgrade machinery, and to invest in new projects or opportunities.
  • Staffing: Utilizing commercial factoring can allow for new contracts, increased staffing, recruitment for top employees, allow for bi-weekly payroll, and more.

Is your company the ideal client for commercial factoring? You might be if you’re highly leveraged, a start-up, or have a high B2B or B2G Accounts Receivable concentration. To read more about the type of clients that have found success working with us, visit our Industries We Service page.

Interested in Learning More About How Commercial Factoring Can Benefit Your Business?

If you are unsure of whether a commercial factoring arrangement can benefit your business, feel free to contact us for more information. Since 1997, we have been talking with savvy entrepreneurs just like you to see if we’re a perfect fit.

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