Showing posts with label trucking. Show all posts
Showing posts with label trucking. Show all posts

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. 

Tuesday, November 29, 2011

DSA Factors is Ready to Help a Rebounding American Furniture Industry

According to the Boston Consulting Group (BCG) recent report titled "Made in America, Again: Why Manufacturing Will Return to the U.S.", we can expect to start seeing furniture manufacturing returning to the United States.  In fact BCG believes that furniture is just one of seven "tipping-point" industries that will start moving manufacturing jobs from China back to the US.  The list of industries includes the automotive, electrical equipment and appliances, furniture, plastics and rubber, machinery, fabricated metal products, and the computer and electronics industries.  These industries account for approximately $2 trillion in sales annually and account for 70% of all Chinese imports.  Additionally this can lead to the creation of 2 to 3 million jobs in the United States.

According to BCG, Chinese wages have been rising at 15-20% per year, while the Yuan RMB has been appreciating against the US Dollar.  The once enormous labor gap cost will shrink to less than 40% by 2015.  As a result the industries mentioned above which have a relatively low labor cost, compared to high costs of shipping, materials, security, delivery responsiveness, and quality control, will begin to move manufacturing of products back to the US for sales throughout the Americas and Europe.  The Chinese will not be closing their factories as they will still have a competitive advantage in Asian markets, but their competitive advantage will disappear in North America and most likely in Europe as well.

BCG does mention that Mexico will still have a much lower labor cost than either China or the US, and some manufacturing jobs will almost certainly go to Mexico.  However the vast majority of manufacturing should be coming back to the US due to our larger skilled workforce and for logistical and security reasons in these tipping-point industries.  The clothing and textile industries, however, most likely won't be returning due to their high percentage of labor costs which will allow the Chinese to keep their competitive advantage.

These changes are already becoming apparent.  From 2001 to 2004 Chinese imports grew by about 20% per year.  However, there have been dramatic decreases in recent years with imports flattening out and even declining in 2009, not just for Chinese imports but for imports from all low-cost nations.

At DSA Factors we are proud to support the American manufacturing industry and are ready to help out anyone, big or small, who is bringing manufacturing back to the US.  We are located in Chicago and have been serving the furniture, trucking, staffing, and many other industries since 1986.  We have helped many companies to grow over the years and will work with you to grow your business.

Wednesday, November 23, 2011

Using Factoring to Survive the Cash Flow Crunch

Companies facing a cash flow squeeze have the option of selling their invoices or accounts receivable to factoring companies as a quick and reliable way of receiving the funds necessary to run their business.  The way a factor works is they check the credit-worthiness of your customers and assuming they have good credit will purchase your accounts receivable for that customer at a small discount.  As a result you will receive immediate cash instead of waiting for 30 or 60 days to collect.

At DSA Factors we can offer to pay you up to 96% for your invoices, and you can receive that money the very same day with a wire transfer or the next day via an ACH.

Many businesses use factors when they are first starting out because they may not have established a long enough credit history to get a loan from a bank, while a factoring company is more concerned with the credit-worthiness of their customers.  However many older, well established companies also use factoring because of the many advantages it offers.  Not only is it much easier to work with a factoring company than get a loan from a bank, but the factoring company also provides valuable services such as doing all of your collections and even insuring your receivables.  Additionally a factoring company is more willing to work with you than a bank as their success is directly tied to your own success.  At DSA Factors you will always be able to talk with one of our principals as well as be able to access a variety of information about your accounts 24/7 from our online tools.

Factoring can work for pretty much any industry, and some industries are almost entirely reliant on factors to meet their cash flow needs.  At DSA Factors we specialize in factoring for the furniture, trucking, and staffing industries.  However we have a wide range of clients that sell everything from office supplies to clothing as well, and we are able to work with any industry to meet their financing needs.  We can also work with any size account, whether you are selling tens of thousands of dollars worth of merchandise to a Target or Sam's Club, or just a few hundred dollars worth to mom and pop stores.