A Business Case for Account Receivable Factoring by United Capital Funding
Accounts receivable factoring is a business tool used all around the world by many different companies. However, it is a relatively new practice in America, and common misconceptions often prevent businesses from pursuing this useful credit tool. So, what exactly is accounts receivable factoring?
Staffing With Factoring In 2020
It’s a new year and so it’s time to beef up your staff. You have your company right where you want it, but you need the talent to facilitate continued growth. Unfortunately for you, there are some outstanding invoices from clients still pending. So, what do you do? The answer is very simple. Utilize our staffing factoring services at United Capital Funding.
5 Common Financial Mistakes
Being in this business for so long, we’ve seen our fair share of financial slip-ups and mistakes. Of course, every business owner makes mistakes here and there, but some mistakes can be devastating if you’re not careful. Take charge to prevent financial disasters before they happen to your business. Get the help you need from our accounts receivable funding company.
Why Trust In United Capital For Your AR Factoring?
Deciding to get into factoring is one thing, but who to factor with is an entirely new decision! And, as with any company, you need to check out everything they offer. It’s almost like buying a new car—it’s an investment. Out of all the companies, why should you choose United Capital Funding to do your AR factoring—also known as accounts receivable? We know we offer more than other companies, but allow us to explain before you make your decision.
Payroll Factoring Done Correctly
How does a business owner turn unpaid invoices into working capital for their business? Well, the answer is called payroll factoring. Typically this financing tool advances 80% to 85% of the value of the invoices. Is this something that you feel could be beneficial to the success of your business? Then give our team at United Capital Funding a call today. Our experienced team will be happy to explain the ins and outs of the process and how we can help your business get to the next level.
What Is A Factoring Company?
There are many organizations out there claiming to help you better run your business. Get-rich-quick schemes and snake oil salesmen are everywhere. Your business is too important to risk with false claims or bad deals. But sometimes, you are in need of increasing your cash flow. You might feel like your only options are selling equipment, letting employees go, or taking out loans. Before you take any of those steps, learn more about what a factoring company can do for you.
The Factoring Company 4-1-1
First off, we’ll explain what a factoring company is. Factoring is when a business sells its accounts receivable to a third-party factoring company. The factoring company charges a small fee and takes over the payment collection entirely. Businesses often find this useful to meet immediate cash needs. Think of it this way: money tied up in accounts receivables and outstanding invoices is YOUR money, a factoring company just helps you access it quicker.
How does Factoring Work?
Factoring is not a loan, it’s a way to get your money sooner. It starts with contacting a factoring company to see if you qualify and get a quote for their services. Then, you literally sell your selected accounts receivable to them. They pay you 80-90% of the invoice in cash, within five days. The factoring company is then responsible for collecting the payments, you don’t have to worry about it anymore! Once the invoice is paid in full to the factoring company, they give you the remaining 10-20%, keeping a small fee for their service. There are no interest charges, no hidden fees, and no risk. Because it’s your money!
Who Uses Factoring Companies?
Businesses of all sizes benefit from factoring. Small businesses can sell their accounts receivables to free up much-needed capital. They then can use it to fund marketing, payroll, or new equipment during growth periods. There are some industries in general that find it especially beneficial. If a business’s billing cycle differs from its customers, factoring can fill in the gaps. This is perfect for government contractors and business-to-business (B2B) service providers. Staffing businesses and security guard companies can also benefit from payroll factoring for similar reasons.
UC Funding: Intelligent Working Capital
If you think selling your accounts receivable could be a good strategy to grow your business, contact us at United Capital Funding. Our fees tend to be significantly lower than other companies, and we can move quickly. Call us as now at 877.894.8232 to see if you qualify and we can give you an instant quote. You can also contact us online. Let us be a partner helping you to achieve your business goals.
Article Posted On: October 02, 2018