4 Ways to Spot a Bad Customer
It is said that one of the secrets to running a successful business is to have only great customers and to avoid the bad ones. This makes perfect sense, but is much easier said than done.
Collapse of MyPayrollHR: What should I do?
As was widely reported online and in most business-related publications, the abrupt closing of the payroll giant processor, MyPayrollHR has left small businesses and their employees scrambling in a state of financial panic. And with good reason. MyPayrollHR and its parent company, Value Wise Corporation closed last Thursday (September 5, 2019) without any warning. It shut down its website and stopped returning phone calls. The company stated that it had over “5,000 companies as clients” as of this past summer. To say this has caused trouble for their former clients would be an understatement.
Why Choose AR Factoring For Your Business?
Accounts receivables (AR) are about as useful as a check you can’t cash out. Waiting to get your money is the name of the game in many industries, but that doesn’t mean it’s easy. But why shouldn’t you get that money sooner? It’s your money after all!
Why Small Business Invoice Factoring Is The Right Choice
Bills are everyone’s worst nightmare. Especially when the money for those bills is MIA. It’s also an unfortunate truth for many small businesses—invoice payments often come in weeks or months later and it’s hard to keep up. But what are you going to do about the bills you have right now?
Florida-based Commercial Finance Firm to have Expert Speak at International Conference
Tampa, FLA (August 22, 2019) – United Capital Funding Chief Marketing Officer Mark Mandula will represent the commercial finance firm at WOA’s inaugural convention in Belgium. The conference will start on Tuesday, October 7, 2019 and is a two-day event that offers networking and educational opportunities to professionals in the finance industry. The theme of the conference is “A World of Opportunities.”
How A Small Business Uses Factoring Loans
So, What Exactly Are Factoring Loans?
Loan factoring is also called invoice factoring. It’s sometimes referred to as selling your accounts receivables. Whatever the vocabulary, factoring involves a third-party factoring company purchasing your unpaid invoices. The factoring company typically pays you 80-90% of the accounts, then take over full responsibility for getting that payment. Once they get paid, they pay you the rest, charging a small fee.
Factoring Loans for Small Businesses
Many types of small businesses find partnering with factoring companies useful. Cash flow can often be hard to come by in small businesses. They often don’t have a lot in their liquid assets accounts and that can be for a variety of reasons. If a business is new and establishing itself, it’s having to make plenty of payments while growing its customer base. Maybe a small business just started hiring its first employees. Or, when trying to follow the mantra “you have to spend money to make money,” it needs to invest in marketing or advertising. Honestly, almost any business with accounts receivables could sell them to a factoring company. Certain types of businesses—big or small—can find it especially helpful.
Small Businesses That Love Factoring
Government Contractors: It’s a big deal when small or medium-sized businesses win government contracts. It’s a real “we made it!” moment. But all the bureaucratic red tape can take a while for your checks to come in. Government agencies can also require businesses to do much of the work before they even begin processing payments. Using a factoring company means you can get your money on your schedule, not the government’s.
Business-to-Business (B2B): Providing services to other businesses is known as business-to-business or B2B. It’s often a great model for a company, especially if you provide specialized or technical services. But, it can often lead to a stagnated cash flow. Your business might be on a 30-day billing cycle when your customer is on a 60- or 90-day cycle. Factoring loans can meet you in the middle so you’re not stuck waiting for your money.
Staffing Businesses: Staffing businesses are a great example of a business-to-business industry. Many different types of companies look to staffing businesses to help fill in seasonal employment gaps or shop for new hires. The company pays the staffing business and the staffing business pays the employees. Often, a company’s billing cycle does match up with the payroll dates. But those employees need to be paid regardless! Factoring loans can help fill in the gap so the business can keep on as usual and those staffers can get paid.
UC Funding for Small Businesses
Besides the above, manufacturing, security guards, and information technology industries also find factoring loans helpful. Your small business might fit into one of these categories, or you might have other needs. If you think factoring loans might work for you, contact United Capital Funding online. You can also call us at 877.894.8232. We can also give you a quick quote and discuss if factoring loans are right for you and your small business.
Article Posted On: October 02, 2018