Bay View Funding Blog

The speed with which your company is initially funded is in part down to you.

You frequently hear about how easy it is to factor your invoices, and it certainly can be, but promptly providing the correct information requested from your factor helps the process run smoothly and quickly. 

So you are seriously considering invoice factoring, and of course you want to be funded as quickly as possible. As we have mentioned before, an experienced factoring company wants the same for you, but will not compromise standards to push funds through quickly, which really works in your favor in the long run. Invoice factoring should never be considered a last minute answer!

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?

The simple answer is yes!

Efficiency is the driving force behind success. Our society has come to expect ‘instant’ results. We order products from the Internet, and companies like Zappo’s have set the bar high, and lead us to expect delivery of items we order the very next day. We feel disappointed if we have to wait too long to receive items we sometimes didn’t even know we wanted!