Investopedia defines accounts receivable financing as “a type of financing arrangement in which a company receives financing capital related to a portion of its accounts receivable.”

A factor is a funding source that uses its own capital to purchase accounts receivables from its clients. A broker does not provide funding. Instead, the broker works as a middleman, connecting businesses with lenders for a fee. United Capital Funding is a factor.

As a verb, to factor is the act of buying or selling accounts receivables. This is the defining difference between a bank loan backed by accounts receivables or other collateral. Since factoring is not a loan, no debt is recorded on your balance sheet.

In most cases, yes. If you currently have an outstanding loan, you may have pledged your accounts receivables as collateral. If this is the case, United Capital Funding will work with you and your current lender to structure a subordination agreement.

United Capital Funding is a wholly owned subsidiary of Gulf Coast Bank & Trust Company, an FDIC-insured bank headquartered in New Orleans, Louisiana.

Our single source of capital is through our parent company, Gulf Coast Bank & Trust Company, an FDIC-insured bank headquartered in New Orleans, Louisiana. We also provide updated financial information published by our company.

United Capital Funding provides accounts receivable financing to businesses nationwide with over $25,000 in monthly sales volume. We specialize in the following industries: staffing (temporary employment agencies), manufacturing, service, information technology (IT), security, consulting, distribution, government contracting, and telecommunications.

Each proposal features custom pricing, and we are proud to offer most proposals at no cost. This means you will typically encounter no application, documentation, due diligence or closing fee. You will typically only encounter two types of fees that begin at the start of funding – a fee for the cost of the capital and a banking fee (ACH or wire transfer charge).

Our soft inquiry credit check has no impact on your credit score. Yes, we do check your credit using a method called a “soft inquiry.” Soft inquiry credit checks are typically used in seeking preapproval on a credit card or checking your own credit. Soft inquiries do not have an impact on your credit score. Whereas a hard credit inquiry is used to apply for credit like a mortgage or car loan. We do not process hard inquiry credit checks.

Yes, United Capital Funding works with brand new businesses. Any business with non-consumer accounts receivables in place has the right structure to consider factoring. We do ask that a business has at least $25,000 in monthly sales volume prior to completing an application – keep in mind, a business is typically not required to factor this volume every month.

Yes, a majority of our clients sought factoring because of growth and either could not secure a bank line or its bank would not amend its credit limits. Factoring has helped our clients better manage its cash flow and secure new business. Click here to read our case studies.

Onboarding can take at least 7 business days, but relies on the information the applicant prepares and processing times with other lenders if additional loans or leins exist. The approval process lays out the onboarding process into four simple steps. As a fully onboarded client, funding can occur on a next-day basis.

No, there is typically no requirement to factor every month. Please refer to your factoring agreement for accurate information.

No, you do not need to sell all of your accounts receivables. As a client, you elect which customers and invoices you wish to factor.

The need to verify your accounts receivable is essential to the factoring process, that is why we work with you to form an introduction to your customer’s billing department together. We are very sensitive when verifying your invoices, which is why establishing this connection is necessary through notification. Once notification is established, the verification of invoices typically moves along quickly for the life of the relationship. This is standard operating procedure in the factoring industry and we have refined this process since we began helping businesses in 1997. Since then, we’ve worked with hundreds of companies as debtors including major retailers and a majority of Fortune 500 companies.

Notification is the process of informing a client’s customer that payments should be directed to our secure lockbox facility. Notification is completed by our operations team during the onboarding process and any time a new customer is added. This is considered ‘full notification.’

The verification process occurs after a client submits an invoice for factoring. We review the invoice and request that the customer that owes this invoice confirms the information on the invoice is correct and is approved for future payment to United Capital Funding. This ensures accuracy during the funding process.

A debtor is a client’s customer. For example, if Bill’s Bait Shop LLC sells fishing lures to Walmart, the client is Bill’s Bait Shop LLC and the debtor (and customer) is Walmart.

Customer payments are routed to a secure lockbox and not handled inhouse. This transition occurs near the end of client onboarding. This allows us to maintain a high level of integrity in the payment remittance process.

We ask that you do not deposit this check and forward it to our lockbox as soon as possible.

As a client, you will have access to CADENCE ClientWeb, an online platform that allows you to view customer payments and run various reports.

Reimbursement would occur if a customer does not pay the full invoice amount by the agreed date. This would occur either by having the amount (advance plus related fees) deducted from your next invoice advance or from your reserves.