PO Financing

Besides factoring specific invoices (accounts receivable), there might be a need for some advance funding.  This is sometimes called Purchase Order financing.  For example your company might be working very hard to land a large order from a customer.  Let’s say your hard work pays off and you finally procure the order.  But now you have a problem.  You need to produce this large order and you need to purchase the goods to fulfill the order.  Your suppliers may not be willing to extend terms to your company for the purchase of the merchandise that you need to acquire in order to fulfill the order.  That’s when DSA Factors can come to the rescue.  Upon presentation of the purchase order, DSA Factors can lend your company enough money to cover either the full cost of the entire order or at least the portion of the cost of the merchandise that the supplier is demanding payment for.    Then once the merchandise is received and invoiced to the customer, DSA Factors will fund the value of the invoice to your customer and deduct the ‘advance’ that was already paid, and remit the balance of the funds to your company.   

Alternative Sources of Cash

Alternative sources of cash

Finding alternative sources of cash is part of building a successful business. Cash is often the best way to pay for operations without incurring heavy debt loads. Many times, businesses make sales to consumers on account. These accounts allow consumers to pay off their debts over a set period of time. Rather than wait for consumers to pay balances in full, companies can factor the receivables to another company. Factoring receivables allows a business to receive money upfront--albeit at a discount--for accounts in good standing.

Cash Flow

Factoring receivables allows companies to improve their cash flow. While selling goods or services on account can improve sales, it has the possibility of delaying cash flows. Companies must rely on their vendors and suppliers to sell economic resources on account. Purchasing resources on account is often why business owners sell consumer goods on account. However, companies with too many sales on account can limit their cash flow. Factoring receivables can provide a quick jumpstart to the cash flow process and allow companies to pay business expenses on time and not incur penalties.

Discover how factoring is a key to growing your business

To keep your business great and growing may mean preventing cash flow problems that can interfere with your business operations.

You can with the help of DSA Factors, the friendliest, most reliable factoring company in the United States.

You can get fast and painless cash by allowing DSA Factors to speed up payments of your accounts receivable.

The financial strength of your customers, not your personal FICO and/or business credit score, qualifies you for factoring your accounts receivable with DSA Factors. 

Instead of waiting as much as 90 days or more to get your money (whether you are awaiting your customers to pay, or awaiting a loan from a bank); DSA Factors can get you your cash in as little as 24 hours with no hassles.

No other factoring company can provide the value you get from DSA Factors.

·         Get cash for your invoices in as little as 24 hours.

·         Get an advance of up to 96% of the face amount of your invoices or accounts receivable.

·         Experience a fast and easy set-up process.

·         Enjoy low, money-saving fees.

·         Eliminate the worry or time involved in collecting on factored invoices

Why Invoice Factoring Is Better Than A Business Loan

Are you looking for a business loan? Many business owners who need financing start their financing search by looking for a business loan or a business line of credit. Although business loans and lines of credit are well known products, they are very hard to get. And in reality, few business owners actually manage to get them.

In certain instances, invoice factoring may be a better and easier to obtain alternative. There are three conditions that can determine whether factoring is a better alternative than a business loan:

Are your clients’ slow payments hurting you? Do they take up to 60 days to pay?

Are you turning away bigger sales because you lack working capital?

With the right financing, does your business have significant growth potential?

If you answered yes to these questions, then chances are that factoring your invoices will be better for you than more traditional business financing products. Invoice factoring provides you with financing based on your invoices, eliminating slow payment cycles and providing you with money to pay rent, meet payroll and expand your business.

Since factoring is tied to your sales potential, it does not have the arbitrary use limits that business loans have. The more your business grows, the more financing you qualify for. Period. This makes it an ideal product for businesses that have significant growth potential.

Factoring (or receivable factoring as it is also known) is easy to use. Once you have invoiced your customers you send a copy of the invoice to the factoring company. The factoring company, in turn, advances you up to 96% of your invoice and waits to be paid by your client. The factoring fee is much less than you may pay your sales representative. 

In effect, by financing your invoices you eliminate the slow payment problem. You accelerate your cash flow, enabling you to pay your obligations, take new opportunities and grow your company.

If you own a business that is growing and you need financing, be sure to consider invoice factoring. Call DSA Factors today to see how factoring can help your business. 

Factoring Facts

Factoring is basically invoice discounting for the purpose of speeding up cash flow.  It has become a legitimate way for growing businesses to obtain loan funding without the need to provide security over physical assets of the business or personal assets such as the home.

Financial institutions are recognizing the importance of offering small to mediums size enterprises an alternative means of funding that does not include security over fixed assets. However, even though they recognize this need, it still may not be something they can handle.   Factoring has become a major source of funding for businesses, since banks have been restructuring their service offerings to companies with limited access to funds based on accounts receivable.   

How factoring works

Factoring provides a fast prepayment for your invoices billed to your customers. It allows you, at a cost, to flexibly increase your working capital and improve cash flow by effectively selling your newly billed invoices to a factoring company.

Factoring is offered to companies selling to other businesses on credit terms. It is not normally available to retailers or to cash traders.

You need to receive credit approvals for your customers in advance of the funding.  Once you have shipped the merchandise, you bill the customer with a notification instructing them to pay the invoice directly to the factor.  The Factoring company does all the collection work and alleviates your need to make phone calls or send out past due notices.  This will allow your company to spend your efforts on growing your business instead of making collection calls. 

Factoring is easy as 1 – 2 – 3

Step 1 - Get the approval from DSA

Your company can call, fax, email, or use our interactive easy to use website to submit accounts to DSA that you have an order from for credit approval.  Our simple and straight forward decision making guidelines allow the vast majority of your approval requests to receive and answer within 30 minutes.

Step 2 - Submit Invoices and Related Documents to DSA 

Once your customer is  approved by DSA Factors, you simply send DSA your invoices and shipping documents that correspond to the shipped merchandise on the invoice(s).  DSA will supply you with an assignment stamp that you will place on the invoices instructing the customers to send their payments to DSA’s P.O. Box address.  (You also will still send the invoices to your customers with the assignment stamp on them.) 

Step 3 - Get Paid for your invoices

That's it! Now that you are set up, DSA Factors will either mail, Wire or ACH the money directly into your account.  We always pay you the same day we receive your invoices.

What your company can accomplish by using the services of DSA Factors

DSA Factors will  provide to you access to see your customers accounts receivable status at any time on our interactive website 24 hours a day.  DSA does all the collection work and processes the payments from your customers.  You no longer need to make collection calls. 

Over the years DSA Factors has built relationships with over 60,000 companies nationwide. This is why we likely have a large percentage of your customers in our data base and we have built relationships with them so that we can allow these companies a generous credit line. 

So how do our collectors help you? Rest assured it’s not by yelling at your customers. It’s actually the exact opposite. Simply put, at DSA Factors we treat your customers with respect just as you would treat them if you were calling them.  Most customers will pay their bills without too many phone calls and letters.  There will always be some difficult collections and of course we need to put more pressure on them to pay their bills.  We consider collections as a sales tool.  The quicker we get your customers to pay us in the allotted terms, the better chance we will have the ability to approve them for a new order. 

By using the services at DSA Factors, it gives your company the chance to expand your business  at any pace you want, since DSA can allow you to have the cash flow that you will need to grow.  You have no worries about whether a customer pays theirs bills and you will always know that your cash flow will be adequate to cover your expenses.  

Who Can Benefit From Using DSA Factors

Factoring can be applied to all sorts of businesses.  Today, virtually any company providing goods and services on an ongoing basis is a factoring candidate. DSA Factors has many nontraditional clients that have benefited from its factoring service. Besides companies in the transportation and trucking business which many of them use factoring services, we have clients in the advertising “media” business that use our services to improve their cash flow.  They buy media time at a discount and resell it to all types of companies, retailers, doctors, home builders, virtually anyone that advertises on the radio and TV.  Other companies we factor for are talent agencies, who need to pay the talent right away while awaiting payment from their customer.  A few years ago, we had a start-up company that we were reluctant to get started with and they finally convinced us to give it a shot, they sold office chairs to office supply companies. Soon they were selling a large office store over $100,000.00 of office chairs per month. Then the next thing they knew they landed a large multi-million dollar order with one of the large warehouse clubs.  The company had only modest capital, but possessed excellent contacts in the industry, coupled with lots of ambition. With the help of DSA’s service and cash-flow assistance, it has grown into a substantial supplier of office furniture in the country.  One of the principals of the company reminded us on many occasions that he believes factoring was the only way to fuel the company's growth.

Certainly a company does not have to do many millions of dollars worth of business to reap the benefits of factoring. Even clients with sales volume less than $1 million need factoring services. At this modest sales level, the company obviously cannot afford to take a bad debt or hire internal credit, bookkeeping and collection expertise. Most importantly, the principal can direct energy to more productive areas that will help the company grow.

Factors, specifically DSA are now considered the premier receivable management entities. With numerous years of experience, extensive databases and state-of-the-art computer equipment and programs, factors like  DSA can offer their services to a greater variety of companies in various fields of different sizes. With increasing emphasis on growth and productivity, there are constant pressures to improve gross margins and computerization. Today, it is important for a company to have the benefit of a factor to help take it into the 21st century.