How does factoring insure my receivables?
Factoring isn't just a way of improving your cash flow and eliminating the need for collections, it also acts as a form of insurance for your receivables. At DSA Factors we offer Non-Recourse factoring. We offer immediate payment for your receivables and that money is yours. That means that even if an account doesn't pay, you still keep the money we gave you for your invoice so long as there are no merchandise disputes.
How do we do this? Well its simple, before an order is placed you need to get an approval for the account. This means that we check the accounts credit ratings and payment history to make sure that they are an honest company and pay their bills. You will no longer need to look up credit ratings or even subscribe to credit agencies or check credit references before selling your products to someone.
DSA offers online automatic approvals to our clients, all you need to do is login to our web site and enter the account and order information. Most accounts are automatically approved and you will receive an instant notification that the account has been approved. With accounts that we can not automatically approve, we will review the accounts at our office and get an answer to you within 24 hours. When we receive a request for credit we don't look for reasons to turn down the account, but rather we look for reasons why we should approve the account. So even if we can't automatically approve an account, most likely we will be able to approve it still.
Unlike other factoring companies, when DSA extends a line of credit to one of your accounts, you don't need to share that line of credit with other clients of ours which may sell to that account as well. So you will not be turned down because we are already factoring invoices on that account with another client. Each account gets a separate line of credit with each one of our clients.
