How a Factoring Loan is NOT a Loan

Are you searching for a factoring loan? We can help you! But first, we want to tell you that a factoring loan is NOT a loan. At least, it’s not like other loans you’re familiar with. The money you get from factoring loans is YOUR money—it’s not money you’re borrowing and have to pay back. Factoring is a real business decision that can help your business operate and grow.  

The Benefits of Loans

Loans can do business owners, as well as individuals and families, a lot of good. Loans can help us get homes and vehicles. They enable us to go to school and earn advanced degrees. In the business world, they help companies start and grow businesses. Depending on the situation, they can assist individuals in achieving many different goals. Loans can be a great tool, but it’s important to know they are not always the ONLY tool you need to grow your business.

The Downside of Loans

Does going to the bank give you flashbacks of going to the principal’s office? You’re sitting across a big desk from someone who can significantly impact your future. There are a lot of questions, paperwork, maybe even some words you don’t understand. Once you’re granted a loan, you then have to add those loan payments to your already long list of monthly expenses. Often, it feels like you’re just paying interest and it’s hard to see an end in sight. You might end up feeling trapped.

How Factoring Loans Can Help

When money feels tight, take a closer look at your ledgers. You’re a prudent small business owner, and you know you’re not making mistakes. Study your accounts receivables. The cash flow might be low only because you’re waiting on getting paid from clients. It doesn’t mean their payments are past-due. Maybe their billing cycles don’t line up with yours. (This is especially common in business-to-business dealings.) Or, their invoice processing timeline seems to drag on and on. (Governmental clients are notorious for this.) If this is the case, it’s time for your business to look into how factoring loans can help you.  

What are Factoring Loans?

Invoice factoring can also be described as selling your accounts receivables. You pass your unpaid invoices on to a company who takes on the responsibility of getting paid. They can give you up to 80% of the money that’s due to you almost immediately. Once your clients pay them in full, you’ll get the remaining percentage minus a small fee for the service: no bank visit, no interest, no collateral. It’s YOUR money. Factoring enables you to access it.

Factoring With United Capital Funding

How to get started? Look into factoring companies. These are financial institutions that purchase your unpaid invoices. United Capital Funding specializes in factoring loans—or buying accounts receivables. We focus on providing you with intelligent capital to help maintain your success. We’ve worked with Fortune 500 companies as well as small family businesses. Our decades of experiences span almost every industry. Take the first step and call us at 877.894.8232 to get a free quote. You can also contact us online. We look forward to hearing from you.