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.
Topics: Tax lien, Business Financing
There are many benefits to working with the federal government, such as guaranteed payment and no shortage of work, but it is not always easy to get started. So how should your trucking company go about obtaining government contracts?
Topics: Cash Flow Solution, Government Contract Financing, Transportation Factoring
Imagine this: You notice the ocean swell and churn as wave frequency, wind speeds, and rainfall steadily increase. The meteorological forecast is calling for a storm. Over the next couple of days, you prepare for the worst by boarding up windows, stocking up on food, and finalizing a potential evacuation plan. There might be a terrible storm, but it could just as easily blow over. What matters is whether you are prepared.
Topics: Alternative Financing, Working Capital, Business Financing
In order to structure a workable operating budget for your company, it is necessary to periodically generate an accounts receivable aging report. What is an accounts receivable aging report?
An accounts receivable aging report, simply put, shows the total balances owed by clients and the duration for which their invoices have been outstanding, broken down into categories, such as 30-60 days, 60 to 90 days, 90-120 days, etc.
Topics: Cash Flow Solution, Factoring Accounts Receivable, Financing Government Contractors
Many large businesses work with invoice factoring companies because factoring can provide them with funds they need quickly – in as little as 24 hours in some cases. When invoice factoring companies purchase invoices from a company’s accounts receivable, that business can get cash then rather than wait the typical 30-90 days for customers to pay to receive said cash. This constant flow of working capital can allow businesses to do things like hire more staff, expand offices, or purchase necessary equipment. In fact, the reason many businesses Here are some of the top large volume industries that benefit from invoice factoring:
Topics: Manufacturing and Distribution Financing, The Benefits of Invoice Factoring, Wholesale financing, Staffing Industry
Considering invoice factoring, but worried about the implications if a customer does not pay? Allow Bay View funding provide some clarification the process.
Firstly, to put your mind at ease before we go into details, an efficient invoice factoring company will thoroughly vet your customers for reliability to reduce the risks associated with non-payment. An invoice factoring company should always:
Topics: About Invoice Factoring
Companies from all different industries and of all sizes can benefit from using invoice factoring to grow their business.
Some business owners worry that using invoice factoring will hurt their relationships with customers; they assume that customers will think a business that uses invoice factoring isn’t doing well. However, in many cases, the opposite is true.
Topics: Business Growth, Accounts Receivable Management, Cash Advance, Financial goals, Invoice factoring
