Factoring, also known as accounts receivable factoring, is a form of working capital financing for businesses selling goods and services to other businesses on credit. A business that factors its invoices has:
Access to instant cash for receivables enables a business to eliminate the time it takes their customer to process and pay their invoices. Factoring is financing that won‘t tie up personal assets or cause you to give up any ownership in your business.
- How does invoice factoring benefit my business?
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Bay View Funding's invoice factoring program helps businesses increase cash flow while reducing credit and collections headaches. We can help you:
- Generate daily cash flow as needed. You choose which invoices you want to factor-regularly or on occasion, when you need a burst of liquidity.
- Reduce your credit risk. We stand behind our credit decisions, taking the credit risk on most transactions with our non-recourse programs. Our extensive invoice factoring experience and credit information databases help determine credit levels for your customers, thus avoiding bad debts.
- Focus on growing your business. Spend your time and increased cash on hand where it's most valuable: finding new customers and managing day-to-day operations. Your Bay View Funding team will make collections calls and provide detailed reporting to keep you up-to-date on your factored invoices.
- Jump-start your cash flow quickly. Most businesses are able to factor their receivables within one week of accepting our proposal.
- What is Bay View Funding looking for in a client?
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Above all else, we are looking to provide cash flow invoice factoring to businesses with principled and hardworking operators who deliver goods or services to creditworthy customers. You may be in hyper-growth mode or you may be unfairly regarded as a credit risk by conventional lenders, but our concern is your existing invoices and the customers who owe you payment.
- Do I have to be an established business, operating a minimum number of years, to be approved?
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No. Bay View Funding is happy to work with businesses that do not have long track records. We will even work with start-ups so long as they have commercial accounts receivable.
- Does it matter where we're located?
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No. Bay View Funding is a nationwide accounts receivable financing invoice factoring company-we have provided working capital to businesses in all 50 states.
- How do we apply for invoice factoring services?
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Just call the Bay View Funding office nearest to your location. You will be asked to complete and fax a signed simple application along with the additional information required.
- How do you set your fees?
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Bay View Funding's fee structure is based on a combination of criteria:
- anticipated monthly invoice factoring volume
- customer creditworthiness
- number of factored customers
- number of invoices sent to customers
- average invoice amount
- accounts receivable turnover (average paying time)
- How long will it take to receive my first invoice factoring funding?
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Once you have returned your completed factoring documents and invoices to Bay View Funding, it should take as little as two days to fund, depending on the quantity of invoices and customers provided for funding.
- After that, how quickly will we typically receive the funds?
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Bay View Funding funds all eligible invoices submitted within 24 hours of receipt. We typically refund reserves on a weekly basis.
- How do I receive my money from my factored invoices?
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Bay View Funding can wire or ACH funds directly to your operating or fuel account. Alternatively, we can send a check using an overnight service or via US Postal Service.
- Do I have to factor all of my invoices?
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No. Invoice factoring is tailored to your needs-you can choose which invoices to factor.
- How long do I have to commit to factoring my invoices?
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Flexible terms are offered to meet your needs.
- Will Bay View Funding approve all of my customers for factoring?
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During the application process, we ask you to supply us with your customer list, complete with names and addresses. We perform credit approvals and establish credit limits on each one of your customers. By providing this valuable accounts receivable management service for your company, Bay View Funding will save you time and help you avoid slow paying or non-creditworthy customers.
- Who collects from my customer?
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Bay View Funding assumes this responsibility. Our courteous and professional staff is the best in the business, with an unparalleled commitment to maintaining excellent relationships with our clients' customers.
- How do we know the status of the factored invoices?
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Customers access our database through a secure 24/7 on-line Client Center. You will be able to see current aging, cash applications, reserves and just about anything else you might want to know about your factored invoices.
- What is the difference between recourse and non-recourse invoice factoring?
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When an invoice is factored on a non-recourse basis, the factor takes the credit risk of the customer, thereby protecting the client from credit loss. When an invoice is factored with recourse, it means that the client is ultimately responsible for payment if the customer does not pay.
- Do you offer purchase order financing or financing for work in progress?
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No. Bay View Funding only provides cash flow factoring of invoices for goods and services that have been satisfactorily delivered and/or performed and billed in arrears. We may, however, be able to refer you to a financing source for work in progress or purchase order funding.
- What is the difference between a notification and non-notification program?
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The main difference is that with a non-notification program, your customers don't know Bay View Funding is involved. In addition, we may or may not make collection calls to your customers.
