Bay View Funding Blog

Are you able to respond quickly to a change in demand? How about a major disruption to the distribution or manufacturing process?

On an operational level, how quickly can your company react to problems or opportunities in the short term, such as a late delivery, a customer needing extra items on a large order, or items that were due to be delivered by ground now need to get there overnight. On a larger scale, your company wants to start selling on the web, or a product is changing design or certain components, and therefore disrupting the production process. What would it take to change the direction of your supply chain?

A successful business is able to quickly respond to sudden alterations in demand. The need to be able to adapt to sudden change is vital in today’s rapidly advancing world. This has become harder in an economy that demands efficiency. The recession witnessed a drop in demand, which saw many companies trimming inventory and cutting costs in supply chain operations. However, a company with a weakened supply chain struggles to keep pace with economic recovery.

As a temporary staffing agency, you find the best people for the best positions – Concentrate on your exceptional skills, and allow us to help you with your working capital requirements!

Your temporary staff is your lifeblood, but connecting with the correct companies with which to do business is an absolutely imperative element to success. As a staffing organization, you are essentially providing an outsourced recruiting and screening service for many diverse industries, companies and for many different positions. The pressure is on!

Are you already factoring some of your invoices? Have you thought about how factoring more of your accounts receivables could help grow your business?

Generally speaking, the rates you receive from an invoice factoring company will vary according to a selection of criteria, which will alter slightly from factor to factor:

• Anticipated monthly invoice factoring volume
• Customer credit worthiness
• Number of factored customers
• Number of invoices sent to customers
• Average invoice amount
• Accounts receivable turnover (average paying time)

You may have heard the latest buzz doing the rounds, a financing tool, known as merchant cash advance, or among other titles, credit card factoring. What is it and how does it compare to invoice factoring?

Similar to accounts receivable financing, a merchant cash advance is not a loan, rather a cash advance, as the title would suggest. Unlike invoice factoring, money is not advanced as a result of invoices issued to customers; it is money advanced on future credit card receipts. Sales are projected and have not yet taken place.

While not a new concept, merchant cash advances have become a popular option for small business owners needing fast access to capital. The premiums for this service can be high – sometimes 30% or more on the money advanced – but there are plenty of businesses prepared to pay the price.

Factoring is a fast and efficient financing option, providing cash now for your invoices due to be paid later. When cash flow is crucial, waiting for a bank loan may not be an option that is fast enough!

There are many reasons to factor your accounts receivables and today I will focus on speed. Hurry up and wait is what can happen when you attempt to secure a loan from the bank. Answering many questions, and gathering paperwork relating to the finances of your company may still end in disappointment.

Have you offered your customers payment terms? Factoring your invoices will enable you to easily and promptly receive cash upon completion of the job rather than waiting up to 90 days for payment.