Three Advantages Of Utilizing An Invoice Factoring Company
Since the credit crisis hit global financial markets
, many companies have seen their lending sources dry up, causing major strain on them to complete everyday tasks. The troubling news is, despite government effort, a new report suggests things arent improving.
According to a Wall Street Journal analysis of Treasury Department data, banks receiving the largest amount of TARP or Trouble Asset Relief Program funds refinanced 23% less in new loans in February 2009, a sharper than expected drop. The fall was sobering to experts considering the billions of dollars the government pumped into the financial sector in an attempt to revitalize the market.
For businesses who rely on loans to deal with cash flow issues, invoice factoring is the only solution. Invoice factoring is a process whereby a business sells its current, unpaid accounts receivable to the factoring provider. This gives the business cash, up front, to take care of operating expenses like covering payroll, buying supplies, and paying benefits and workers compensation. Invoice factoring allows businesses to attain the funds they need based on the amount of money they anticipate on receiving from clients.
Businesses of all sizes can utilize invoice factoring, but they can be most useful for small to mid-sized businesses or businesses that are relatively new. Most businesses in financial crisis look to bank loans for the funds they need. But businesses that are too new to have a financial-track record, weak balance sheet, history of financial problems, that are in turnaround mode, or undergoing big changes, are often unable to find a willing lender at any price.
So what are some of the other advantages of invoice factoring? First, it is a quick and easy process. After completing and returning factoring documents, it usually takes between two and five days to fund. Secondly, dealing with invoice factoring takes the worry out of your life. You no longer have to worry about delinquent payment from invoices you send out. Additionally, you dont have to worry about tracking down and hassling clients whose accounts are not up to date. Finally, not only will you receive on-time payments but you are also to keep your payments up to date for employees, suppliers, and other expenses.
Bay View Funding is a factoring company that solves cash flow and receivables management issues by creating a personalized invoice factoring program. They offer credit lines up to $2.5 million and advance rates up to 97 percent of face value of the invoice. They offer unique features like the secure 24/7 On-line Client Center, where businesses can monitor every aspect of a factored account.
Bay View Funding can take over your billing, collection and customer credit monitoring needs, leaving you with more time to grow your business. They have served thousands of successful companies, spanning a wide range of industries, who have entrusted them with their invoice financing needs. Their accounts receivable factoring service has helped manufacturing, distribution and service companies, including freight transporters, grow and prosper. Bay View Funding is strongly committed to providing businesses with convenient invoice factoring to solve their cash flow challenges.
by: Ava.hudson
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