Bay View Funding Blog

2014 has arrived! There is no time like the present to check the cash flow health of your business.

Often we work through our monthly financial obligations, holding off on important decisions until the money comes in. There are many opportunities to improve cash flow that we tend to overlook, putting off today what we can worry about tomorrow. Time to take control of unpredictable cash flow!

Take a moment to consider our questions concerning your financial relationship with your customers, your operating costs, and your business development. 

1.         Your financial relationship with your customers:

• Are you struggling to manage your financial obligations because of the terms you have set with your customers? Is waiting 30-90 days for payment causing a cash flow crunch?
• Are your customers delaying payment longer than their agreed terms? Are they responsive when you ask for payment?

When considering the many aspects of running a staffing company, the concern that frequently rises to the top is financing payroll.

Staffing companies have seen a greater demand for services over the last year as the economy recovers. In order to succeed and grow you must concentrate on providing excellent service to your existing customers, building a new client base, and getting quality assignments for your staff.

Your goal is to employ and retain the best employees, which means paying competitive salaries at regular intervals and always paying on time. This often involves funding payroll for your contractors prior to receiving payment from your clients.

2013 is coming to a close and it’s time to prepare for 2014. Take a moment to review the key trends in truck fleet management for the upcoming year.

In an extremely informative article, Mike Antich, Editor and Associate Publisher at Truckinginfo.com, shares the top trends in truck fleet management in 2014. Mr. Antich maintains that 2014 and 2015 will be pivotal years for truck fleet management, and fleet efficiencies; he examines trends in the following three areas: 

1.   Vehicle and Equipment 

Lighter-weight equipment specifications in fleet vehicles will lighten the load and continue to help increase fuel economy. Driver comfort, as well as driver safety will be ongoing priorities for vehicle manufacturers, which in turn will encourage a higher rate of driver satisfaction and productivity. In terms of safety, manufacturers are offering enhanced safety features on basic models, thereby increasing safety at all price points.Fleets are obviously impacted by DOT and CSA regulatory compliance, but safety vs. cost needs to be carefully managed. Some fleets are choosing to downsize to smaller GVW vehicles to manage costs while still maintaining safety.

We are in the middle of another seasonal peak, and the demand for temporary staffing is high. How do you keep your trusted employees happy?

The temporary staffing setting is obviously somewhat different from a regular work environment. Since your employees are working at different companies, the feeling of office unity will rarely be the same. You will always experience employees who are looking for permanent jobs and are using the temporary staffing environment as a stepping-stone, but what about the employees you rely upon to keep your company successful? 

Accounts receivable financing seems like a great option for your company, but what if you can also qualify for a line of credit from the bank?

Factoring your invoices is regularly suggested as a viable option when you cannot qualify for a line of credit from the bank. Why should a company consider factoring when they are able to secure bank funding? 

A bank line of credit will certainly help meet the cash flow needs of your business. If the credit history of your business is strong, and interest rates are low, you can most likely secure an excellent rate for your line of credit. Following the approval process, a sum of money is then available to tap into as and when your company needs it. The benefits:

Factoring accounts receivables has become a valuable option for businesses that simply cannot wait to be paid by slow paying customers, but is it really worth the cost?

Let’s take a quick look at cost. When you decide to factor, your factoring company will set a rate, which is dependent upon several things, some of which are:

• Sales volume
• Invoice size
• The creditworthiness of your customers
• The number of creditworthy customers
• The length of your contract with each customer
• The number of days the invoice is outstanding

How can I fulfill my large orders when cash flow is tight?

The dilemma for many manufacturers is the lack of available cash flow to buy raw materials in order to complete large orders. It is also an issue for distributors or wholesalers lacking funds to pay manufacturers to produce goods.

Lack of available funds can mean losing valuable business you know you are capable of completing. It could also seriously jeopardize future orders with existing customers. Purchase order funding and invoice factoring can both be alternative financing options worth considering.

So what is the difference?