Bay View Funding Blog

One of the most common reasons for stifled growth or even business failure is limited cash flow. A study by U.S. Bank showed that as many as 82 percent of startup and small business failures can be attributed to poor cash flow management.

As an entrepreneur, you may find yourself eventually looking for funding solutions.

When you are ready to expand your business or need help resolving cash flow issues, invoice factoring may be your best option. Upon deciding to use invoice factoring, the next crucial element is determining which company will work best for your business. The factoring company you choose will impact the entire experience you have with the service, from the application process to customer support. Here are some tips on how to choose the right factoring company.

Like many financial services, invoice factoring works best when used as part of an overall financial management strategy. When used appropriately, it may help jumpstart growth, pay down debt, and help businesses find a path to financial success. We’re here to help you understand exactly what invoice factoring is and when you should consider using it for your business.

Cash flow problems stemming from late payments can create a number of issues for small and growing businesses. With every hiccup, the trickle-down effect can make a large impact on your company’s future. To maintain a sustainable book of sales, meet payroll, and manage tax liabilities, every organization needs a strategy for managing cash flow. Here are some of the best tips to ensure your business will have a steady flow of money:

In general, cash flow management is one of the factors that determine the financial stability of any business. When customers delay or avoid paying invoices, any company could face cash flow difficulties. Invoice factoring enables businesses to sell outstanding invoices in return for working capital – the capital used daily in trading operations. For many, it can serve as a viable alternative to traditional bank loans and credit exhaustion.

According to Google Trends (see graph below), one of the hot trends in American business today is invoice factoring.

You see it online; even hear about it on television and the radio. But would it surprise you to learn that this way of creating cash flow for your business isn’t new? In fact, invoice factoring is over 2,000 years old!

Selecting the right factoring company for your business can seem overwhelming, but it doesn’t need to be that way. In fact, the process is quite simple.

When we were young, wise adults taught us (if we were lucky) about “wants” and “needs” when choosing how to handle our money. “Needs,” we learned, took priority over “wants.”