Bay View Funding Blog

Business is full of unexpected surprises, some of them expensive. Invoice factoring can help you turn unpaid receivables into workable capital for your company. If you have unpaid invoices, it is unwise to let them sit for too long. The faster you can collect (or receive payment from) them, the less damaging the burden from surprise expenditures can be.

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?

One of the most common reasons for stifled growth or even business failure is limited cash flow. A study by U.S. Bank showed that as many as 82 percent of startup and small business failures can be attributed to poor cash flow management.

As an entrepreneur, you may find yourself eventually looking for funding solutions.

When you are ready to expand your business or need help resolving cash flow issues, invoice factoring may be your best option. Upon deciding to use invoice factoring, the next crucial element is determining which company will work best for your business. The factoring company you choose will impact the entire experience you have with the service, from the application process to customer support. Here are some tips on how to choose the right factoring company.

Like many financial services, invoice factoring works best when used as part of an overall financial management strategy. When used appropriately, it may help jumpstart growth, pay down debt, and help businesses find a path to financial success. We’re here to help you understand exactly what invoice factoring is and when you should consider using it for your business.

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:

Almost a decade after the 2008 stock market crash, some lending institutions are still conservative with lending. Maintaining any size business requires a steady cash flow and many small to large-sized businesses have tight budgets. For many businesses struggling to make ends meet, the barrier may not be a lack of motivation – it could be a lack of capital.