Factoring 101 Blog - Acounts Receivable Factoring and Other Industry News

How To Factor an Invoice Posts

Want to know how factoring works? The Factoring 101 Blog has got you covered! Check out all of our posts on how to factor an invoice in one convenient location.

You can also visit our How To Factor page which will walk you through the entire process of factoring an invoice.

How to Submit an Invoice for Factoring

It's been a while since our last how to video, but we have now released our third video in our How To Factor series. This video walks you through the process of submitting an invoice factoring, picking up where the last two videos left off. As an added bonus, both Ben and Howard appear in the video, so you will now understand why they pursued a career in factoring instead of in Hollywood! As always, if you have any questions about submitting an invoice, you can always give us a call and we'll be happy to walk you through the process.

We hope you enjoy the video, and if you have any ideas for future videos please let us know.

How to Request an Online Credit Approval for New Accounts

The second video in our online factoring tutorial is here. In this video we show you how to submit a new account for credit approval from our web page. The process is very straight forward, but as a family owned business we pride ourselves on our excellent customer service. So if you have any questions, or want us to walk you through the approval process over the phone, please don't hesitate to give us a call at 773-248-9000 and we will be more than happy to talk to you.

We hope you enjoy this video and the entire factoring tutorial video series. Our next video will most likely be on how to submit an invoice for factoring. Stay tuned, and as always, if you have any ideas for future tutorial videos, please let us know. Thanks!

How to Request an Online Credit Approval

We have just published our first factoring tutorial video. Our plan is to create an entire series of factoring tutorials that our new clients can use as a reference. While much of this is nothing new for our long-time clients, for those of you new to DSA Factors or are considering factoring with us, these videos will walk you through the entire factoring process, from start to finish, and hopefully answer all of your questions. For our clients who have been with us for many years now, hang in there, we hope to create some videos featuring are online reporting tools that might teach you something you didn't know before!

The first video we are publishing is how to request an online approval (for an existing account with DSA Factors). Of course, as a family owned business we pride ourselves on our excellent customer service. So if you have any questions, or want us to walk you through the approval process over the phone, please don't hesitate to give us a call at 773-248-9000 and we will be more than happy to talk to you.

We hope you enjoy this video and the entire upcoming video series. If you have any ideas for future tutorial videos, please let us know. Thanks!

How Does My Business Qualify for Accounts Receivable Factoring?

Unlike applying for a loan or line of credit with bank, accounts receivable factoring is very simple to qualify for. If your business bills other businesses for either a product or a service, and you offer them payment terms, then you qualify for accounts receivable factoring. Best of all, with accounts receivable factoring, credit decisions are based on your customers' good credit rather than your own, and you don't take on any new debt.

Accounts receivable factoring is available to a large variety of industries. All manufacturers and importers qualify, whether you sell furniture, bedding, rugs, wall decor, giftware, housewares, kitchenware, toys, electronics, food, apparel, hardware, or anything else, accounts receivable factoring can work with your business to provide you with the working capital you need to grow. Service providers can also qualify for accounts receivable factoring, this includes marketing, staffing, IT, consultants, or anyone else who provides a service for other businesses.

Startup businesses, rapidly expanding businesses, well established businesses, and even foreign businesses that are entering the North American market all qualify for accounts receivable factoring. It doesn't matter how long you've been in business for or what type of credit your company has, with account receivable factoring we look at the credit worthiness of your customers to make credit decisions.

Furthermore, with accounts receivable factoring there are no credit limits. As your receivables grow so does the amount of funding you receive. So regardless of how long you've been in business or any credit problems you may have had in the past, with accounts receivable factoring the sky is the limit.

Sound to good to be true? Give DSA Factors a call today at 773-248-9000 and find out just how easy it is to qualify for accounts receivable factoring. All it takes is one call, and we can be funding you in as little as 24 hours!

How To Factor An Invoice

So you've heard about accounts receivable factoring. You know with factoring you can improve your cash flow without taking on any new debt. However, you've never factored an invoice before and you aren't sure how to do it. Luckily for you, factoring an invoice is incredibly simple and shouldn't take you much more time than a minute or two. Here is a step by step walk through of how to factor an invoice.

Request an Approval

Once you receive a purchase order, simply logon to DSA's web site and request an approval. If it is a customer that you have factored with us before requesting an approval is very easy, all you need is their account number and the value of the purchase order. For a new account that we have not factored for you before, we just need some basic information about your customer. Just provide us with your customer's name, address, phone number, and the amount of the order. If you have a fax, e-mail, and contact name we appreciate that as well. For existing accounts, you may receive an automatic approval directly on the web page, but if you don't we will do our best to respond to your request within half an hour. There is no need to ask your customer to apply for credit or provide credit references, we will take care of everything for you.

Ship and Invoice

Once you have received an approval it is time to ship the merchandise to your customer and invoice them for it. We will provide you with a stamp to stamp the invoice with which states that the invoice is payable to DSA Factors. Alternatively, if you do everything electronically and don't wish to stamp and scan invoices, you can type the wording of our stamp directly onto your invoices.

Send DSA a Copy of the Invoice and Shipping Documents

The same day that you ship and invoice your customers you can e-mail copies of the invoice along with the shipping documents (bill of lading or FedEx / UPS tracking number) to DSA. If we receive everything before our banking deadline we will process the invoices and fund you that same day. If it arrives after our banking deadline then you will be funded the following business day.

Let Us Manage Your Accounts Receivable

At this point there is nothing left for you to do. We will manage your accounts receivable for you. That means that we will send out account statements to your customers, forward them copies of invoices upon request, and make collection calls should an account become past due.

Sign Up for Invoice Factoring with DSA

If factoring an invoice sounds simple enough, signing up with DSA Factors is just as simple. Just give us a call at 773-248-9000 and either Ben, Max, or Howard will be able to answer any questions you may have and get you signed up for accounts receivable factoring. You can start receiving funding in as little as 24 hours.

How Accounts Receivable Factoring Works

Accounts Receivable Factoring is a simple and fast way of improving your company's cash flow. When you get an order you submit it for approval, DSA Factors will provide you with a quick response. Once approved you ship and invoice your customer, and DSA Factors will fund you for your receivables that same day. After that DSA Factors handles all of your collection work and insures your receivables. Get started factoring today by calling DSA Factors at 773-248-9000 and we can be funding you in as little as 24 hours.

Factoring is easy as 1 - 2 - 3

How to factor your accounts receivable

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.

The Bank Alternative Especially Since Banks Aren't Lending

Properly financing the growth of a business can be challenging. It is inevitable for both new smaller companies and more established larger companies to come to a point where more working capital is required because of previous growth or to assist in new growth. When business financing such as loans and credit are inadequate, when sales on credit or net terms have caused a cash flow shortage, or when new growth requires more available cash on-hand to facilitate it, additional financing is necessary to a company's survival. The solution for this financing dilemma is through Accounts Receivable Factoring with DSA Factors.

Accounts Receivable Factoring is Really Very Simple

Accounts Receivable Factoring is a financing method used by many businesses. In-effect it is a means of short-term borrowing using outstanding invoices or receivables as collateral. This allows companies of all sizes to obtain the working capital they otherwise might not have been able to receive.

The credit line for the receivables is decided based on the financial strength of the end-customer who will owe the money on the products or services purchased, not by the seller of the receivables.

Account receivables factoring is not a loan, so there are no payments and no debt is incurred.

Any business which generates sales through open credit terms to credit-worthy accounts is eligible for this type of financing.

Each company that buys from you and would like credit terms (you must offer terms to be competitive) is submitted to DSA Factors to determine if they are eligible for financing.

The process is simple:

  1. A company delivers its goods or provides its services to clients and issues an invoice.
  2. The company then sells its invoice to a factoring company such as DSA Factors, and in exchange the company is given up to 90% of the invoice's amount in cash within 24 hours.
  3. Then the factoring company handles the collections and gets paid for the invoice when it becomes due.? Certainly it is quite common that the bill is paid past the due date, and if you are working with DSA, there is no additional fee to the supplier that sold the invoice to the factor.

Utilizing Account Receivable Factoring with DSA Factors delivers more predictable cash flow to businesses, and since factoring receivables is directly tied to sales, as sales increase and the company grows, the receivables factoring line can quite easily grow right along with it.

Contact Us Today

DSA Factors - Money to Make Your Company Grow!

PO Box 577520
Chicago, IL 60657

 773-248-9000

 773-248-9005

 info@dsafactors.com

 

Contact Us Online!

DSA Factors
International Factoring Association


All product and company names are trademarks™ or registered® trademarks of their respective holders.
Use of them does not imply any affiliation with or endorsement by them.