While some businesses struggle to stay afloat in the choppy economy, United Capital Funding is profiting from the storm. The Florida-based company was formed in 1996 and specialises in factoring accounts receivables
The US$8m to US$10m that United Capital factors every 45 days ranks it among medium-size companies in the US$129bn factoring industry in the United States. About 5 percent of the receivables turn into bad debts, which United Capital absorbs.
United Capital is one of more than 10 factors in Florida’s Tampa Bay area. The state’s biggest factoring company is Capital Factors in Boca Raton. Other major players in the state include LSQ Funding Group in Orlando and Bibby Financial Services in Boynton Beach.
Factoring becomes more attractive to companies during slow times, when businesses that owe them money drag out payments. Often it's the biggest names in business that have the clout to take their time repaying suppliers.
