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?
Specialist industries, like those providing goods and services for oil and gas companies, who work with factors, should take the time to compare rates and levels of service regularly to make sure they are getting everything they need in a constantly shifting economic environment. Changing factoring companies is simpler than you think.
Often companies will do their initial research, and lock in with one factoring provider, but not regularly revisit the service they are receiving until something untoward prompts a second look. As business grows or changes, so do financial requirements. A good accounts receivable financing company will be vigilant, and make sure they remain current with their client’s changing financial needs. Often the initial considerations center around cost, time, and efficiency of service, but arranging regular meetings to make sure everything is running smoothly does not always happen.
The oil pipeline contractor had been working with the same invoice factoring company for 9 years. He felt ready to move to bank financing but was turned down. He felt sure of obtaining funding from the bank, so felt let down when it was not a tenable. Bay View Funding was able to step in and offer a better rate than his previous factoring company. This was a bonus, but the real advantage came in the level of service received. After successfully factoring with Bay View Funding, he was able to obtain a traditional line of credit from the bank. Collaboration between bank and factor is extremely important. We want our customers to become so successful that they progress quickly to bank funding, and will even suggest it when we feel it is the right financial decision moving forward
Keep lines of communication open with your factor, and revisit your contract regularly. Not all invoice factoring companies are the same and it literally pays to be vigilant.
If you are not yet factoring your invoices, and are unable to obtain bank financing, here is a quick reminder of the Bay View Funding advantage:
- Three decades of experience in accounts receivable financing
- Rates as low as ½%
- Cash in 24 hours once you are processed
- Generous terms of credit up to $5 Million
- Extensive knowledge in a wide range of industry solutions
- Passionate customer service and support
- Dedicated industry experts handling your accounts
If you are feeling dissatisfied with your current factor, don’t wait until it is too late, do your research and find a better solution.