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?
How Does Factoring Work For My Company?
No matter if it’s a good time or a bad time for the economy, businesses may still need liquid capital to enhance its cash flow cycle and when you’re waiting on capital from your clients, you need that cash more than ever. Consider factoring your company’s invoices to access that capital and don’t worry if you haven’t heard of factoring before. If you’re wondering “what is factoring?” or “how does factoring work?” United Capital Funding is here to help.
From Mark Mandula: Thoughts on the COVID-19 Pandemic Part IV
As the COVID-19 pandemic continues at full strength in much of the United States, it is becoming clearer that the economic damage done by the virus will be widespread and significant. The first inkling of this unsettling fact appeared last week when an unprecedented surge in jobless claims was announced. From the prior weeks, data of 282,000 claims came the stunning news that the current weeks total was about 3.3 million. At that point, equity and other markets in the United States nearly came unglued and the optmisitic chatter was that this would be the highest claim that would occur in the COVID-19 period. Most economists and experts had predicted that the number of claims would be nowhere as high as the 3.2+ million that wa actually reported.
Loan Programs for Small Businesses Impacted by COVID-19
Small businesses are the backbone of the American economy. There is no debate that the current COVID-19 pandemic will cause significant economic harm to this critical part of our nations GDP. How important is it for small businesses in the United States to be vibrant and successful? Consider these facts about the magnitude of the role small businesses contribute to the United States economy (data from the Office of Advocacy, Small Business Administration).
The History of Factoring From A Trusted Factoring Company
So, you know about how the factoring industry operates today—but where did it all begin? Learn about the history of factoring from the specialists a United Capital Funding. We’re the factoring company you can trust with your capital.
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!
Let’s Recap On Factoring
We feel factoring is often the most necessary term to flesh out for our current and future clients. So many terms are interchangeable when someone means “factoring,” so we understand how it's confusing! But if you know what to look out for, it becomes rather easy.
- Accounts Receivable Factoring/Financing (Also known as AR Factoring!)
- Factoring Finance
- Invoice Factoring/Financing
- Selling Receivables
- Commercial Factoring/Financing
And while there are many terms for factoring the idea is still the same. With factoring, companies sell their invoices to a factoring company and get the majority of their money faster. When you don’t use factoring, you can wait for weeks or even months without a payment on your invoice. By getting your money fast, your business is open to growth that wasn’t possible before.
The ABC’s Of Factoring Finances
Every industry has its own terms and jargon that pop up in everyday use. Terms that, to the unknowing, would make absolutely no sense! And as a business owner, you might know little about financial terms, while your financial department is knowledgeable. But for the sake of being on the same page, why don’t we go through a quick glossary of terms for everyone’s sake?
- Accounts Receivables: When you charge a client for services, they are given an invoice, right? These outstanding invoices are referred to as “accounts receivables” in the finance industry and are copies of the bill that still require payment.
- B2B: Business to business. Companies who are B2B often create products and/or provide them to other businesses for sale.
- B2G: Business to government. These companies provide services or goods to government agencies. One example of a B2G is a tech company providing IT support to city hall.
- Collateral: This is just an easier way to refer to your invoices, contracts, and bills.
- Reserve: Remember how we said you get most of your money in about a week? The remaining amount is called the “reserve.” We hold onto that until your client pays their bill in full at our lockbox facility. Then we send the reserve to you, minus our fees.
And these are just the common terms you’ll see when you go through your process with UCF. If you do see any terms that you don’t quite understand—that’s alright! Feel free to talk with one of our professionals to better understand the process. As one of the best factoring finance companies around, we aim to help however we can.
Have A Question For Our Factoring Finance Company?
If you’re ready to begin the process with our firm, apply today! On the other hand, if you have a few questions for us before we start, please contact us. You can reach us at 866.647.2680, online, or by emailing us at firstname.lastname@example.org. We look forward to hearing from you! Let us know if we can help you with any terms you may not know.
Article Posted On: October 23, 2019