Bay View Funding Blog

As a temporary staffing agency, you find the best people for the best positions – Concentrate on your exceptional skills, and allow us to help you with your working capital requirements!

Your temporary staff is your lifeblood, but connecting with the correct companies with which to do business is an absolutely imperative element to success. As a staffing organization, you are essentially providing an outsourced recruiting and screening service for many diverse industries, companies and for many different positions. The pressure is on!

Opportunities in the oil and gas sector are set to increase in 2014 – find out how invoice factoring can help your business keep up.

Firstly, what is all the hype about?

According to a recent article in CNN Money, the US is set to overtake Russia as the biggest oil producer outside OPEC during 2014. The reason? There has been a huge investment in the production of shale gas in the US. This increased investment is partly due to new technologies, such as hydraulic fracking, that make the extraction of oil and gas from shale rock commercially viable.

The new processes involving shale oil and gas excavation are driving plenty of business for many companies involved in the oil and gas industry. The International Energy Agency estimates that the US will produce more than 11 billion barrels of oil and natural gas liquids per day in the second quarter of 2014.

Are you already factoring some of your invoices? Have you thought about how factoring more of your accounts receivables could help grow your business?

Generally speaking, the rates you receive from an invoice factoring company will vary according to a selection of criteria, which will alter slightly from factor to factor:

• Anticipated monthly invoice factoring volume
• Customer credit worthiness
• Number of factored customers
• Number of invoices sent to customers
• Average invoice amount
• Accounts receivable turnover (average paying time)

You may have heard the latest buzz doing the rounds, a financing tool, known as merchant cash advance, or among other titles, credit card factoring. What is it and how does it compare to invoice factoring?

Similar to accounts receivable financing, a merchant cash advance is not a loan, rather a cash advance, as the title would suggest. Unlike invoice factoring, money is not advanced as a result of invoices issued to customers; it is money advanced on future credit card receipts. Sales are projected and have not yet taken place.

While not a new concept, merchant cash advances have become a popular option for small business owners needing fast access to capital. The premiums for this service can be high – sometimes 30% or more on the money advanced – but there are plenty of businesses prepared to pay the price.

The month of February will see the employees of invoice factoring company Bay View Funding in a war involving pennies! However, in this ‘war’ everyone wins, with the proceeds going to the American Cancer Society.

The Penny War is becoming an annual tradition at Bay View Funding! This friendly rivalry between office mates is all about raising money for charity. Last year close to $1000 was raised for the American Cancer Society. There are high hopes that the amount raised will increase this year, considering the level of office competition. When they are not busy financing accounts receivables for their customers, employees will be putting their spare pennies to war!

Factoring is a fast and efficient financing option, providing cash now for your invoices due to be paid later. When cash flow is crucial, waiting for a bank loan may not be an option that is fast enough!

There are many reasons to factor your accounts receivables and today I will focus on speed. Hurry up and wait is what can happen when you attempt to secure a loan from the bank. Answering many questions, and gathering paperwork relating to the finances of your company may still end in disappointment.

Have you offered your customers payment terms? Factoring your invoices will enable you to easily and promptly receive cash upon completion of the job rather than waiting up to 90 days for payment.

How frustrated must you become before you resort to nasty letters and angry attitudes towards your late paying customers?

Large and experienced AR departments often have a solid policy in place to help with invoice collection from late paying customers. The staff has been carefully trained to remain calm. They have several arrows in their bow to deploy in a potentially inflammatory situation. Not so for small business owners, collecting on your invoices is just a small part of your many responsibilities; you are simply wearing too many hats! And this can be a drain on your time and your patience