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How Commercial Factoring Can Benefit Your Company

What Is Commercial Factoring?

Essentially, commercial factoring is a company purchasing your accounts receivable so that you can turn them into capital that you can use to run your business. Here are the steps that United Capital Funding follows:

  • Step 1: A copy of your invoice is provided to United Capital Funding.
  • Step 2: United Capital pays you 80-90% of the invoice in cash.
  • Step 3: United Capital acts as your B2B (business to business) and B2G (business to government) accounts receivables department and services the invoice.
  • Step 4: Your client pays 100% of the invoice to United Capital Funding at our secure lockbox facility.
  • Step 5: United Capital Funding pays you the 10-20% balance less a small professional fee.

Commercial factoring, or accounts receivable factoring, is different from a traditional bank line of credit. This process focuses on the trustworthiness of your customers’ credit, not your company’s. You do not have to worry about narrowed credit availability due to credit cycles, economic volatility or market fluctuations. Commercial factoring eliminates the long approval process that you experience with loans. United Capital Funding is quick, free, and dedicated to getting you the working capital you need to run your business as soon as possible.

How Can Commercial Factoring Help Your Business?

Businesses thrive when they have the available funding to grow. With the extra capital, your company can cover employee salaries, operating expenses, and can purchase needed inventory or equipment to continue normal business activity. This speeds up the collection process for your accounts receivables and removes the pressure to follow up on the invoices. United Capital Funding takes that responsibility from your company, which increases your capacity to deal with other business issues and allows your company to grow without having to wait for the invoices to be paid, or never be paid at all. You will only pay for the invoices that are factored, and there is no minimum requirement.

Grow Your Business

At United Capital Funding, we want to see your business grow. Our goal is to help you achieve your business goals. Obtain a quote online, or call us for a quote at 877.894.8232 and see how United Capital can make the difference for you.


Article Posted On: February 28, 2018

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