Be Prepared – The Importance of Cash Flow Projection

Posted by Aaron Zahedani on Wed, May 14, 2014 @ 08:34 AM

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.

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Topics: Cash Flow Solution, Solving Cash Flow Problems, Factoring Accounts Receivable, About Invoice Factoring

Customer Relationships – The Bay View Funding Benefit

Posted by Gil Oliva on Fri, Apr 11, 2014 @ 07:45 AM

When it comes down to choosing an invoice factoring company, there are many questions that need to be addressed, and many concerns to overcome, before there is a mutual decision to move forward. For Bay View Funding, the relationships they forge with their customers, and their customer’s clients are of paramount importance.

There is a lot of talk about the initial decision to factor, and discussion about the process and all the documentation required. But one of the most frequent concerns is ‘How will you treat our customers?’ Do they have to know we are factoring their invoices? This concern is very real, simply because the answer is ‘yes’ they do need to know. Factoring with an experienced company can actually enhance your relationship with your customers.

The team at Bay View Funding does not want your decision to factor to be based upon your concern about how your customers will be treated. Excellent customer service is an integral part of our company philosophy. Professional and friendly service is on going and not just something to be considered on initial contact, in order to get business, or when the first set of invoices are funded.

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Topics: Factoring Accounts Receivable, About Invoice Factoring

How Invoice Factoring helped 3 Companies with Working Capital Challenges

Posted by Gil Oliva on Wed, Apr 09, 2014 @ 08:14 AM

Bay View Funding has successfully funded advances of over $450,000.00 to 3 high growth companies with working capital challenges in Philadelphia, Delaware, and New York.

While we like our blogs to be informational, we think it is helpful to illustrate the ways in which working capital can be managed with the help of invoice factoring. We are happy to share some recent success stories, and will do this from time to time to highlight the industry specific companies we are able to help.

Jerry Calabrese, Business Development Manager, for Bay View Funding in the Mid Atlantic Region, shared “It is always gratifying to enable high growth companies succeed using invoice factoring, a much overlooked, but extremely simple, effective source of financing. The 3 companies in question were experiencing different situations that were a perfect fit for accounts receivable funding. We were able to provide a simple solution to the challenges they were each facing.”

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Topics: About Invoice Factoring, Factoring Accounts Receivable, Financing Government Contractors

Why are Accounts Receivable Aging Reports so Important?

Posted by Gil Oliva on Fri, Apr 04, 2014 @ 07:53 AM

In order to structure a workable operating budget for your company, it is necessary to periodically generate an accounts receivable report showing the aging process for outstanding invoices for any goods and services supplied.

accounts receivable aging reportThis critical report allows you to carefully analyze the financial reliability of your customers. If one company is consistently late paying invoices, it should send out a warning flag that there is a possibility they are not succeeding in meeting their business goals. This could make them a potentially bad credit risk and therefore a bad account to work with.

To successfully meet monthly operating costs you need a steady revenue stream, and an accounts receivable aging report will show which companies are making regular, on-time payments. Without this information, it will be difficult to maintain a healthy cash flow if you are always worried about late payment on outstanding invoices.

Once you are able to assess which accounts constantly pay late, you can evaluate payment terms with your suppliers and make changes accordingly. For example if a customer consistently pays 5 days later than the payment terms agreed upon, and you have historically accepted the late payment, but your suppliers need payment earlier, you will eventually have problems making payments to your suppliers and jeopardize that relationship. This, in turn, could result in loss of customers, as suppliers lose faith in your company’s ability to pay bills in a timely fashion.

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Topics: Cash Flow Solution, Factoring Accounts Receivable, Financing Government Contractors

Working Capital Management the Invoice Factoring Way

Posted by Gil Oliva on Fri, Mar 21, 2014 @ 08:39 AM

It is helpful to revisit the fundamentals of invoice factoring periodically. We frequently refer to the invoice factoring procedure in many blogs, but often when concentrating on the benefits of accounts receivable financing as it relates to a specific topic. We have recently discussed the documentation and process involved, but let’s illustrate a little further.

When you decide to factor your company’s accounts receivables, you are essentially selling them to a factor at a discount in exchange for a cash advance. The factor must wait normally 30 but up to 90 days to collect the full value of the invoice from your customers.The discounted invoice amount is the factor’s fee for advancing cash on unpaid invoices. This amount may also be referred to as a rate.

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Topics: Cash Flow Solution, Factoring Accounts Receivable, About Invoice Factoring

Can Accounts Receivable Funding be Bad for Business?

Posted by Seth Herman on Wed, Feb 26, 2014 @ 08:06 AM

Warning! You are about to read a blog following a negative question! Can invoice factoring be bad for business? Read on.

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Topics: Factoring Accounts Receivable, Financing Government Contractors, About Invoice Factoring

Invoice Factoring or Bank Line of Credit?

Posted by Gil Oliva on Wed, Dec 18, 2013 @ 07:15 AM

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:

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Topics: Cash Flow, The Benefits of Invoice Factoring, Factoring Accounts Receivable, Financing Government Contractors, About Invoice Factoring

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