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?
Medical Staffing Factoring Can Solve Your Payroll Problems
As a staffing company, timing can affect your ability to make payroll. Medical staffing factoring could easily and quickly solve your funding problems.
The Importance Of Payroll
Businesses should value employees as their most important assets. According to Business News Daily, their payroll should always be a priority. (In this article you might spot some thoughts from our CMO Mark Mandula!) Consistently making their payroll is your first duty towards them. But that’s often difficult when your cash flow is low or irregular. These issues can especially affect medical staffing and similar companies. You have some options to ensure you can make payroll when your employees need it.
- Planning: This advice might be frustrating in hindsight. But, planning and putting money aside could ease future payroll woes.
- Liquidation: Selling your business’s assets can free up funds for payroll. Survey and see if you have surplus equipment, inventory, or real estate.
- Loans: Loans and line of credit can increase your cash on hand. Paperwork and an approval process can mean they can take a little time—and loans charge interest.
- Factoring: Selling your accounts receivable is also called factoring. It can get your business YOUR money exactly WHEN you need it.
Medical Staffing Factoring: An Issue Of Timing
As a staffing business, your employees are your assets. You’re not selling goods such as furniture, your clients need people to work, and you provide the people. That means your payrolls are often your most significant expense. You bill your clients for the funding to write paychecks, but timing is sometimes not in your favor. Employees expect to be paid for the time they worked, in a timely manner. But your clients might be on different billing cycles or delay paying you. Pass along these unpaid invoices to a factoring company. They can get you your funding so you can pay your people.
Factoring For All Staffing Companies
In addition to medical staffing factoring, United Capital Funding works with all kinds of businesses. Especially those who have many business-to-business (B2B) and government contracts. Specific to payroll factoring, we’ve assisted the following types of staffing companies:
- Clerical Staffing
- Consulting Staffing
- Government Staffing
- Industrial Staffing
- Information Technology Staffing
- Janitorial Staffing
- Light Industrial Staffing
- Technology Staffing
- Telecom Staffing
United Capital Funding: Your Trusted Business Partner
United Capital Funding has years of experience with medical staffing factoring. One of our staffing company customers recently said, “My account representative has been a true asset to our team.” And that is precisely how we want our clients to view us. We’re not just another vendor or supplier. Our service enables you to grow and maintain your business. Call us at 877.894.8232, fill out an application, or contact us online. Your funding is the lifeblood of your company—see how we can be your funding partner.
Article Posted On: March 25, 2019