What Services Does a Factoring Company Provide?
Written by US Funding on November 16, 2015
If you’re considering using a factoring company to access your company’s receivables faster than the trade terms you may have set up with your customers, you’re not alone. Many successful small businesses rely on a factoring company instead of taking out a bank loan or accruing high interest credit card debt. When you access funds through a factoring company, the money you are borrowing is already yours; at U.S. Funding, we provide cash for your Accounts Receivable. But that’s not all you get. A factoring company is not just another creditor. U.S. Funding provides a number of services that can help successful small businesses to grow.
Whether you run a fast-growing small business or a temporary staffing agency, it can be a challenge to keep up with payroll demands. A factoring company not only offers you the cash to meet payroll each month, but U.S. Funding can actually process your payroll for you, quickly and accurately. We will calculate withholding for each employee, as well as 401K contributions, benefits, and more.
Our payroll services also include printing and distributing employee paychecks or establishing and managing direct deposit accounts for your employees. We’ll also help you file payroll taxes and issue W-2 forms to your employees.
It makes sense to manage Accounts Receivable and payroll functions through the same company, that way you have to connect with only one source for questions related to your small business bookkeeping, AP, AR, and payroll. You can also save money this way. If you didn’t know a factoring company could provide payroll services, too, you may want to contact U.S. Funding today and inquire about our many services.
Tax Code Compliance
Payroll and corporate taxes tend to go hand-in-hand. Tax law is always changing, and it requires the expertise of a professional firm to keep up. U.S. Funding understands complex, industry-specific tax codes within a number of industries, including manufacturing. We can help make sure you are always in compliance, that your small business meets IRS deadlines, and pays the correct amount of taxes to avoid penalties and fines.
Accounts Receivable Bookkeeping Services and Collections
When you hire U.S. Funding, you turn over your accounts receivable to the factoring company. The factoring company then collects on these invoices. You enjoy the benefit of having professionals manage your accounts receivable, so your small business bookkeeper can focus on aspects like cash flow statements, revenue management, and balancing the books.
In addition, we will manage collections of invoices so you never have to worry about late payments. A factoring company is not the same as a collections company. U.S. Funding cannot purchase past due invoices. But we will make sure that all your current AR invoices are paid on time. We will pay you that money upfront, minus a small fee, even if your customers are on trade terms of Net-30, Net-60 or Net-90.
Your One-Stop Small Business Resource
Many successful small businesses have discovered that hiring a factoring company is an efficient way to solve cash flow problems. With our additional services that include tax code compliance, payroll, and bookkeeping, U.S. Funding can be your one-stop resource for better financial management, bookkeeping services, and improved cash flow.