See Yourself Grow With Our Accounts Receivable Buying Company
At United Capital Funding, we understand that you want your business to prosper and we want that for you too. Our motivation is to serve you by providing growth opportunities for your business. How can we accomplish this? We provide you with cash flow to handle the day-to-day operations so you can invest in emerging areas of your industry—and for a competitively low factoring fee.
Terms To Know From A Factoring Finance Company
No matter if you’re new to business or have been around for a while, everyone needs a refresher every once in a while. And we know, financial business terms can be hard to grasp onto sometimes. But that’s why we’re here! At United Capital Funding, we’re ready to help as much as we can as your choice factoring finance company. Let’s get to it and review those terms!
Stop Waiting On The Government To Pay Your Invoices
Working with the government is good business. You know the money is coming and it’s a steady stream of work. However, your company spends weeks or months waiting on a paycheck that you earned a while ago. For some, that income is necessary to keep the lights on, let alone keep employees paid. There is a way to get a majority of this money within a week.
A Merchant Cash Advance Loan: we did the math
Like a sheep in wolves clothing, the MCA product is a troubling and rapidly growing segment of the small business online lending industry today. A small business owner must be very careful and understand the true cost APR of this kind of capital. If they don’t, they run the risk of true financial Armageddon, and a wise small business owner should seek all other reputable options for capital before selecting to get a seemingly low cost, fast MCA for their small business enterprise.
Buyer Beware! How To Do Due Diligence On A Business
In the fast-paced and interconnected world of commerce and technology, the need for businesses to protect themselves has never been greater. Businesses seeking a provider for services must start a due diligence effort before signing any contractual agreements. If not, they put their own capital or employees at risk. Merriam-Webster defines the term due diligence as research and analysis of a company or organization done in preparation for a business transaction.
Looking For An Example Of Factoring In Finance?
For some, it can be difficult to understand the need for factoring. At United Capital Funding, we found it important to provide an example for everyone. Not every company grows at the same rate as each other. You deserve to grow as a company and not fear whether or not you can pay your employees that month. So what can you do about it? Factoring might be the best course of action for your company! Let us show you an example of factoring in finance to see how it all works.
What Is Factoring?
Factoring is simple. When your client owes you money for a service or product, these are accounts receivables (invoices). These outstanding bills need to be paid, but it can take weeks or even months before you get your money. So why not sell these invoices to someone who can get you your money sooner?
And How Does It Relate To Finance?
Finance itself is a special branch of economics. This field concerns itself with the management of money, credit, and investments. Within finance, it’s the job of the employees to find the best deals and management techniques for their business to grow.
With this in mind, how do these two relate? Since factoring is the management of money for the sake of the business, factoring is a perfect road to go down. By using factoring, a company’s growth can rise before they know it.
Our Example Of Factoring In Finance
Now let’s go through an example of factoring in finance so everyone understands:
TechCo has three major clients: MouseTech, MassMedia, and HardSoftware. TechCo regularly supplies these companies with products. However, their payment comes thirty days after each shipment. This doesn’t work well for TechCo, who isn’t growing quickly and needs the money to pay their employees.
Their head of finance then offers the option of selling these outstanding accounts receivable, or factoring them. Without delay, TechCo contacts a factoring company, such as UC Funding, to get the process going.
To begin, TechCo provides us at UC Funding with a copy of their invoices. Once we approve their application, UC Funding provides TechCo with 80% of their invoice within a few days. We now act as the accounts receivable department and services the invoice ourselves. Once the client pays 100% of the invoice, we send the remainder of the invoice to TechCo, and we remove our fees from this.
It’s a simple process! Within days, you have most of the money you’re owed. Never worry about payroll again and grow your business at the same time.
Need Another Example Of Factoring In Finance?
As we are part of a bank, UC Funding provides lower fees when you factor with us. Have a question or two? Feel free to contact us at 866.647.2680 so our specialists can answer any question you have. Are you interested in a free consultation? Visit us here to get started. Having an example of factoring in finance on hand allows you to see just what you’re missing! Contact UC Funding today and get your money today.
Article Posted On: May 30, 2019