Friday, June 8, 2012
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.