Bay View Funding Blog

With freight bill factoring, discounts are available at the pump. You can manage your expenses with an FTS fuel card.

It is a constant challenge to manage and control fuel costs for your fleet. Steady cash flow means less need to worry about fuel costs, and factoring your accounts receivable can certainly help with this, however if paying for fuel can become a little easier, this is an added tool that can work in your favor.

Why should you consider a discount fuel card on top of using freight bill factoring for your accounts receivables? And why is it such a benefit?

Thinking about accounts receivable financing?  We have compiled 5 frequently asked questions to help in the decision making process.

1.              How does invoice factoring benefit my business?

To coin a familiar phrase in business, ‘it’s all about cash flow’, and if your particular business is generating a regular amount of accounts receivables, a good invoice factoring company specializing in AR funding, can help increase cash flow while reducing credit and collections headaches. If your capital is available quickly, your cash flow is increased and you have access to immediate working capital.

10 Questions to Ease the Decision Making Process    

When you are looking for an accounts receivable financing company for your customers, consider more than just the deliverable.  Working capital matters, but reliability matters more!

As with any partnerships, there are ups and downs, and good relationships can be hard to find. Obviously, credibility with your customers is one of the most important elements of your business. There may be occasions when you would like to refer your customers to an accounts receivable financing company, or factor, but they all look the same! It is hard to differentiate, so what should you be looking for in a broker partner?

Have you always considered invoice factoring to be the last resort answer for cash flow problems?  A form of financing you would not consider unless you were about to fail? 

Accounts receivable factoring is an excellent funding source for large businesses wanting to receive quick payment on outstanding invoices, as well as new and rapidly growing businesses that are organized and understand their sales cycle.

It pays to be organized.  A well-run company seeking accounts receivable funding will be far more successful obtaining financing than those companies looking for factoring as a last resort answer to cash flow issues. Certain fundamental elements need to be in place, such as:

Federal spending is healthy which means excellent opportunities for government contractors.

So is the United States Government one of your best customers? If not, it may be time to consider the benefits.

Getting your foot in the door may seem daunting, but once you have made the decision to go after contracts with the U.S. Government, the procedure is well documented, and relatively simple to follow. Check out our earlier blog covering tips on the bid process, and useful links to help explain the process. 

So what is freight bill factoring? and why is reliability so important? 

In simple terms, factoring companies pay you money now for freight bills that your customers may not pay for up to 30 - 60 days. Factoring your accounts receivable helps you maintain a constant flow of cash. In a trucking environment that is by nature hectic, constants are critical! Regular, on time payments from your customers can often be a challenge.

• How quickly do your customers pay?

• Do you spend time chasing payments?

• Have you offered discounts but still spend time collecting?

• How many of your customers are 'solid' payers?

Helping Manufacturing Companies Grow

As a manufacturer, poor cash flow management can really become an issue at two critical times: 

• As you start out

• As you start to grow

In both scenarios, you are more than likely going to take on long, and short-term debt, to finance your fixed and working capital requirements. Financing for manufacturing companies comes in many forms, let’s look at the reasons manufacturing financing is necessary.