Bay View Funding Blog

Invoice factoring is a great financial resource for businesses providing services, or delivering products to commercial accounts, in just about any industry.

Working with local organizations is beneficial to everyone, and Bay View Funding is enjoying collaborating with the Hispanic Chamber of Commerce in San Jose to help educate members about invoice factoring as an alternative, and effective source of accounts receivable funding.

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

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?

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.                                                                                                                           

Bay View Funding has helped 3 high growth companies, specializing in distribution, janitorial services, and oil field servicing, with their working capital challenges.

Accounts receivable funding continues to provide an excellent answer for companies who simply cannot obtain traditional forms of financing. Proving also, that there are many occasions when collaboration with the bank really can provide a successful outcome.

Liz Castillo, VP, and Regional Sales Manager, for Bay View Funding in the Southern Region, has had an exceptional month, funding in the wholesale, healthcare and oil field markets. Castillo commented that ‘Bay View Funding is in an excellent position to help specialist markets with invoice factoring, where traditional forms of financing have simply not been a viable option. Happily, on many occasions, we are able to work closely, and reciprocate business, with banks to find the right answer for each challenge”