Selling Receivables vs. Loans: The True Winner
Life is a bunch of twists and turns. One moment your business could be on top of the world, and the next you’ve never been lower. Especially when you’re stuck waiting on your paycheck for weeks or months, paying the bills seems impossible. At this point, most people would consider a loan. Although, this isn’t the only option!
Choosing An Accounts Receivable Company
As a growing business (in the B2B or B2G realm), you know it can be difficult to expand with a slow source of income, but relying on payment for accounts receivables does not mean that you have to wait for your money.
Factoring Finance Saves Businesses?
Who would have thought you’d be struggling to pay your workers even though business is booming? It’s actually a common problem many have when their revenue comes from accounts receivables. Your client’s check is coming months from now, but your employees need their money now!
Florida-based commercial finance firm unveils innovative platform
Commercial finance firm, United Capital Funding, unveiled a new reporting platform this month to its clients. The reporting platform, Cadence, is the latest addition of cutting-edge features that mark the finance firm’s continued commitment to client-centric offerings.
Utilizing Commercial Factoring In B2B Companies
As a B2B, or a business providing a product and or service to other businesses, you rely on payments being made on time. But the reality is that sometimes you can be waiting for payment for who knows how long. This isn’t an ideal strategy for a growing company.
What Are Accounts Receivable Funding Companies?
When you’re managing your own small business, it seems there is no end to the amounts of expenses it requires. You know the phrase, “you have to spend money to make money,” but man! Sometimes it feels like there isn’t an end in sight. How do you get funding to take your company to the next step? You’ve heard of lenders and investors, but what about accounts receivable funding companies? They could be your business’s best option to take itself to the next level.
Types Of Funding
Small business owners have many different types of funding options. Most fall into one of two categories: equity or debt. Equity is giving someone a bit of ownership in exchange for some monetary support. Partners, angel investors, and venture capitalists are all examples of equity funding. With debt, you keep your ownership, but you’ll have to pay creditors back—often with interest. Creditors include lenders, small business loans, and banks. Depending on the agreement, crowdfunding or borrowed money can be either equity or debt funding.
You know all about your accounts receivables. They’re the outstanding invoices you’re waiting for your clients to pay. Business-to-business (B2B) and business-to-government (B2G) dealings can often take a while to get paid. It’s so frustrating because it’s YOUR money. You did the work already—you’re just waiting on getting paid for it. But did you know you can SELL your accounts receivables to gain access to your money now?
Accounts Receivables Funding Companies
Accounts receivables funding companies purchase your outstanding invoices. It starts with reaching out to get a quote on their services. The application process is much simpler than that of a bank or lender. They can pay you up to 80% of the accounts receivables value in a matter of days. After that, it’s the funding company’s responsibility to get that invoice paid. Once the customer pays the invoice, the funding company pays your balance, minus a small service fee. No loans, no interest, no headache!
How Use Accounts Receivable Funding
There are no restrictions on how your business can use those freed funds. Remember, money from selling accounts receivables was always your money to being with. Simply put, funding companies help you access it sooner. Once they purchase those invoices from you, they are no longer your worry! You’re free and funded to start your next project.
- Is there some new equipment you’ve been eyeing? Sell your accounts receivables and equip your business with new resources!
- Ready to revamp your website or start a marketing campaign to boost your sales even more? Funding companies can process your payment in a matter of days so you can begin advertising ASAP.
- Stockroom looking a little low? Increase your inventory, so you’ll be ready for the next surge in sales.
UC Funding for Your Accounts Receivables
Small businesses have long trusted our team at United Capital Funding to purchase their accounts receivables. We’ve seen every industry, every size, and every kind of invoice. To learn more about how UC Funding can help your business reach your goals, contact us. Call us at 877.894.8232 for a free consultation.
Article Posted On: December 05, 2018