We know all the routes to take
to get you the best business loan
United Capital Source specializes in accounts receivable factoring services for equipment and furniture wholesalers. With this type of working capital loan, the business lender, or “factor,” purchases unpaid invoices for a discount price. Instead of being paid several months after an order is processed, you are paid by the business lender in just a few business days. It is now entirely up to the business lender to collect from your customer. When this happens, the business lender gives you the remainder from the first payment.
The funds can be used for just about anything. You can pay your vendors ahead of time to receive discounts, or capitalize on of off-season discounts on bulk purchases. Unforeseen expenses or temporary gaps in cash flow can be quickly alleviated. Having more cash on hand also allows you to work with whomever you want, as opposed to being so desperate for cash that you’ll accept potentially-hazardous terms.
The near future shouldn’t always be a concern
Unlike more traditional business loans, tight cash flow and a certain amount of money in your bank account are not required to access accounts receivable factoring. This is why many UCS clients sell unpaid invoices when business is slow. Arguably the biggest advantage of accounts receivable factoring, however, is predictability. When you know how much money will be flowing in and out of your business, you can cover planned expenses like tax payments and schedule long-term investments when it makes sense for your budget.
If accounts receivable factoring doesn’t sound right for you, we are happy to discuss other perfectly feasible options like short-term working capital loans or business lines of credit. Both can be crafted to have the same functions listed above, including inventory management. The latter option can allow you to regularly purchase inventory or pay bills that you otherwise wouldn’t be able to cover for another week or two. If you get an unexpectedly large invoice, a business line of credit can cover the resources required to fill the order on time. Apply now to see how much you qualify for!