Bay View Funding Blog

From Initial Contact to Commitment – Invoice Factoring in 5 Simple Steps

The invoice factoring promise of an injection of money now for invoices due to be paid by your customer later could be just what your company needs to succeed. However, rather like applying for a mortgage, or filling out your tax return, the process may initially seem intimidating.

Any application that involves filling out paperwork, and a request for detailed documentation, certainly requires a level of commitment. Once you have investigated invoice factoring as an option, consider the complete invoice factoring cycle to help you decide if factoring really would be a great fit for your company.

The steps are simple, but it pays to be prepared:

In order to structure a workable operating budget for your company, it is necessary to periodically generate an accounts receivable aging report. What is an accounts receivable aging report?

An accounts receivable aging report, simply put, shows the total balances owed by clients and the duration for which their invoices have been outstanding, broken down into categories, such as 30-60 days, 60 to 90 days, 90-120 days, etc.

More and more women are entering the workforce in a variety of roles; some are starting their own businesses, while others are looking for support and encouragement as they climb the company ladder. There are many resources, from financial advice to mentoring programs available to help women succeed in business. 

When you are offering any type of credit to your customers, it is important to provide them with your credit and collections policy. This means that they are aware from the outset of financial expectations, and of the penalties should they pay late. 

Small businesses appear to be more reticent about borrowing money. Since the recession, they do not want to take on too much debt and risk the possibility of losing everything. However, loans are available, with the right help and guidance from the bank or other financial institutions. 

Demographics are shifting when it comes to trucking. The trucking industry has been working to bring a more diversified group of drivers to the field, and driving schools are beginning to notice a shift. 

There are many resources to help explain the process of invoice factoring. Here are our answers to three frequently asked questions.