Firstly, you may not even know what invoice factoring is, let alone how this alternative source of commercial financing actually works. Bay View Funding has developed a new online guide, which is also available as a download, explaining the whole process from what it is, to how it can help your cash flow.
Invoice factoring, also known as accounts receivable financing, is an effective form of business financing. It is a great business solution for companies who experience common commercial finance challenges such as outstanding invoices waiting to be paid. It is a powerful and practical way to strengthen your business cash flow and manage your finances, which in turn will help you to grow your business. So what does the guide cover?
- What is invoice factoring?
- How can invoice factoring help your cash flow?
- How does invoice factoring work?
- How do I qualify and get started?
- How much does it cost?
The guide presents you with several possible scenarios appertaining to your cash flow challenges, and explains how invoice factoring may be able to help. Slow payment of invoices is a common problem for many businesses and invoice factoring may be an answer for you when it comes to getting your invoices paid faster.
There is always the question of how to qualify and get started; any form of financing requires a certain amount of dedication and paperwork. This can often feel like a daunting task. The good news is that the qualification process for invoice factoring requires a good deal less time and energy than a traditional loan from the bank. Also, qualification is not dependent upon the credit history of your business. Mostly, the credit history of your customers is what comes into play.
The cost of financing is always a major consideration when deciding upon the best type of funding for your business. Although invoice factoring may appear to cost more than a traditional loan, it is very much dependent upon your financial circumstances. Consider the level of cash flow challenge your company is facing, and if factoring your accounts receivable provides a way of alleviating your cash flow shortage, and then the cost of financing may well outweigh the alternative. The rate you are offered is dependent upon several factors such as sales volume, invoice size and creditworthiness of your customers.
The guide goes on to answer many questions such as:
- What additional benefits should I look for from my factoring company?
- How can invoice factoring help my business grow?
- What questions should I ask?
- Do companies of all sizes and industries choose to factor?
It is always good to ask as many questions as possible. Bay View Funding offers funding up to $10M, with cash in as little as 24 hours once you qualify, and rates as low as 0.5%*.