Accounts Receivable Financing More Flexible Than Ever

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Author: Brian Reed

No matter how successful your business is, cash flow can still be a huge challenge. After all, it is impossible to pay rent with promises. In sectors where conventional bank loans aren't an option, accounts receivable financing can be a lifesaver for your business. Accounts receivable financing converts your existing invoices into cash in as little as 24 hours. Your receivables become liquid instantly and the cash can help your business operate and grow.

There are many different sectors that utilize accounts receivable financing including: staffing, transportation, machining, printing, food processing, technology, advertising, fulfillment, design, software, janitorial, security, nursing, apparel, custom brokers, electronics, furniture, pallets, giftware, pharmaceuticals, and government contractors. Funding companies offer their services to many of these sectors that some traditional lenders consider to be liabilities. Yet, by nature, certain industries have characteristics which are considered too unstable for a traditional lender. Some of these characteristics include companies which are debtors-in-possession, fast-growth companies, seasonal industries, spot sales, customer concentrations, undercapitalized business, leveraged buy-outs, selling terms to Net 90, tax liens, supplier payment requirements, and tri-party agreements.

When a business signs an agreement with an accounts receivable financing company, they have a great deal of flexibility in their options. First, the company only has to factor the invoices they wish to have factored. When an invoice is factored, the company can wire or ACH funds directly into an operating or fuel account, or send a check overnight via US Postal Service.

An invoice can be classified as a notification or non-notification program. With a non-notification program, your clients won't know that you have a factoring company involved. Additionally, an invoice can be factored on a recourse or non-recourse basis. The difference between a recourse and non-recourse is that on a non-recourse basis, the factor takes the credit risk of the customer, thereby protecting them from credit loss. When an invoice is factored with recourse, it means that the client is ultimately responsible for payment if the customer does not pay.

An accounts receivable financing company's fee structure is based on a combination of criteria, including: anticipated monthly invoice factoring volume, customer creditworthiness, the number of factored customers, the number of invoices sent to customers, average invoice amount, and accounts receivable turnover (average paying time). Bay View Funding has been strongly committed to providing businesses with convenient invoice factoring to solve their cash flow challenges. 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, and distribution and service companies, including freight transporters, to grow and prosper. When it comes to freight bill factoring, Bay View Funding has the experience and resources to help your business grow. Brian Reed. Accounts receivable financing - For expert information on accounts receivable financing and how we can help you get cash fast, contact Bay View Funding.