Bay View Funding Blog

The Mid Atlantic Region of Bay View Funding has recently introduced three new specialist businesses to accounts receivable financing.

Cash flow should be simple, and there are many ways to go about finding a viable answer to your cash flow needs. We have discussed the many benefits of invoice factoring. Let’s take a look at another option that focuses on a specific financing requirement.

Have you heard of installment contract financing? It is a way of providing your customers with more options for payment so you can increase sales. If you can offer customers more ways to pay, chances are they are more likely to choose you as their business partner. Convenient monthly payment plans mean an easier way for your customers to pay, which leads to increased revenue for you, but how does this work?

Collection Agencies are not Invoice Factoring Companies but the Rules of Engagement are Equally Important.

It is often assumed that invoice factoring companies and collection agencies have a similar role. The fact is they really don’t. Factors collect money now on accounts receivables due in the future; collections agencies collect money now on accounts receivables that have gone into collection because, for whatever reason, your customer has not paid. However, there are some similar considerations, such as reliability, credibility and experience, when it comes to picking a factor or an agency to use for collections.

Factoring in the Change

Bay View Funding was obviously more than happy to help an oil pipeline contractor who was dissatisfied with the service his company was receiving from their existing accounts receivable financing company. But what prompted the need for change?

As we near the halfway point of 2014, it is a good time to take a look at some of the big challenges small businesses continue to face.

In an article addressing key issues small businesses will face in 2014, Angus Loten and Sarah E Needleman look at three big challenges for 2014 and beyond. In summary, they discuss the following:

Do you have customers who simply have not paid on their invoices? Collections could be an answer, but when should you resort to this, how does it work, and how does it differ from invoice factoring?

There is a common misconception that collections agencies and invoice factoring companies are similar. This could not be further from the truth. Both receive money from your customers, but there are some major differences.                                                                                                                           

Projecting cash flow is one of the most vital elements to a profitable business. If the cash flowing in to your business is not matched with the cash flowing out, chances are you will be looking at badly managed cash flow, and a potential crisis.