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.
