Information technology (IT) companies are essential in our modern economy.
The ability to provide exceptionally talented personnel to companies is a vital part of the success of any business.
However, you will discover that invoicing in the information technology (IT) industry has its own set of challenges. Its workforce is its product, and that workforce has to be paid on a regular basis. Perhaps you issue paychecks twice a month or biweekly, but how does that align with your invoice terms when a payment can come as late as 90 days later? There will be times of the month when the cash going out for payroll exceeds the cash coming in. Waiting for payment on your invoices will leave you scrambling to meet payroll needs, provide training, and ensuring certification for your workforce.
What about a bank loan? While a bank loan seems like the only option, small business owners don’t always have that option. Even for an established business with a great credit score, a bank loan can take months to process before you see the funds. That is why factoring is vital to companies in the information technology (IT) industry, and 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 Solution? Factoring
Our experts provide factoring services with a focus on customer care and support. We want you to be comfortable, informed and educated about the process. We take the time to answer your questions and make sure you are fully aware of your options as a business in need of better cash flow. With factoring, your business will have fast access to the capital owed to you through your invoices. Accounts receivable factoring for IT firms provides an invaluable level of support and gives the business owner complete control over cash flow.
As a client of United Capital Funding, here’s how it works:
- First, you fulfill the agreed-upon information technology (IT) needs laid out in your agreement with your customer.
- Then, generate an invoice for the total cost of the service provided and send copies to your customer and United Capital Funding.
- Our experts will verify the invoice, then wire a large percentage (typically 80%) of the invoice amount to your account, holding the remaining percentage (20%) until your customer pays the full invoice amount to our secure lockbox.
- Once your customer pays the full invoice amount to our secure lockbox, our team wires the remaining percentage (less our fees) to your account.
- Voila! You’ve successfully unlocked that capital.
Factoring is a steady, long-term solution for your invoice management. We allow you to choose which invoices you want to factor and you can access your invoices and reports through our secure online platform, all at no extra cost.
What are the fees?
You will typically only encounter two types of fees – a fee for the cost of the capital and a banking fee (ACH or wire transfer charge). Our fees are drastically lower than the industry average, according to Pepperdine Graziadio Business School’s 2019 Private Capital Markets Project. This keeps your total costs down and your invoice cycle efficient. Visit our benefits page for more information. We offer customized proposals according to your specific needs. To receive a proposal, please submit an online application.
Please note, factoring is not a loan. It is an advance on pending payment by your customer, which means there is no repayment on your part.
Three Ways to Get Started
Submit An Online Application
Submitting an application takes less than 10 minutes and there is no cost to apply.
Call (866) 647-2680
Call our offices! We are open Monday to Friday between 8:30 a.m. – 5:00 p.m. Eastern Time zone.
You guys do an outstanding job in terms of service and support for your clients. By merely requesting the opinion of clients continues to speak volumes of your level of satisfaction. Thanks for all the support you and your team have given to your organization.
Owner, Service Company, Tennessee
A leader in factoring for the information technology (IT) industry
Since 1997, our experts have helped the information technology (IT) businesses grow by providing a service that traditional lenders can’t. We make it easier for you to get the funding you need to enhance your business.
We can do this even if you are a startup, an 8(a) contractor, or are a company with a recent history of a less-than-profitable performance.