Bay View Funding Blog

When a business signs up with a factoring company, the factor may ask the client to sign a Tax Information Authorization or Form 8821, a form that gives the factoring company access to tax information for the years listed in the authorization. This often surprises businesses. With invoice factoring, a form of financing that relies more heavily on the creditworthiness of customers, it can be shocking to find out that your business needs to provides tax documents.

You put a lot into your company.

Blood. Sweat. Tears.

And more than a few sleepless nights, worrying about making ends meet.

You have decided that invoice factoring might be a good financial solution for your business. But every choice comes with challenges. So many different rates. And with so many factoring companies out there -

At some point, every business needs extra capital to fund growth. If you’re a mid-sized or large business, the amount you need may be a large number. Learn what your funding choices are and how you might use capital for business growth in 2018.

Startups can be some of the most innovative business ventures. Being innovative can also involve a lot of risk, and many startups suffer from time constraints, staffing to meet demands, and difficulty obtaining funding. Invoice factoring may be able to help with funding by optimizing cash flow without the long delay that generally follows the invoicing process. Using invoice factoring may help ensure that your startup won’t run out of funds, which could potentially halt operations and slow growth.

Most businesspeople have a rough idea of the moving parts of cash flow, but it’s vital for business leaders to understand how to gauge cash flow accurately. Several operational expenses can easily go unnoticed, such as inconsistent contracts with service technicians or similar expenses. For new business owners, these expenses quickly become overwhelming.

If you’re a business owner, there are two easy ways to turn your unpaid customer invoices into cash – invoice factoring and invoice financing. While these two terms are closely related, there are some important differences that may confuse you if you’re not familiar with them.

What Is Invoice Factoring?

Cash flow problems stemming from late payments can create a number of issues for small and growing businesses. With every hiccup, the trickle-down effect can make a large impact on your company’s future. To maintain a sustainable book of sales, meet payroll, and manage tax liabilities, every organization needs a strategy for managing cash flow. Here are some of the best tips to ensure your business will have a steady flow of money: