DSA Factors

What is Fintech Factoring?

Fintech - Financial Technology

There are many forms of financing out there, but Fintech also incorporates technology into the mix. That means that you are able to manage your financing easily using online tools that work quickly and efficiently. With financial technology obtaining financing for your business is quick and easy, with credit decisions made in minutes, and funding available in hours.

Factoring - Improved Cash Flow

With accounts receivable factoring you get funded the same day you invoice your customers, giving you the working capital you need to grow your business. No longer do you need to wait 30 days or more to get paid when you offer payment terms to your customers, and you can use the funding you receive to pay off your suppliers, make payroll, pay the rent, attend trade shows, or do anything else you need to grow your business.

What Makes DSA Factors Fintech?

Improved Cash Flow & A/R Management

With accounts receivable factoring you get funded the same day you invoice your customers. No longer do you need to wait 30 days or more to get paid when you offer payment terms to your customers. We also handle all of your credit checking, collection work, and insure your receivables. Best of all, accounts receivable factoring is not a loan so you aren't taking on any new debt.

While getting funded the same day you invoice will greatly improve your cash flow, sometimes it isn't enough when you receive a large purchase order and need to order another container of merchandise. With purchase order financing you can get a short term loan you can use to pay off your suppliers in order to fulfill a large purchase order. We can even break the loan up into two parts, the first to pay a deposit to the factory, and second to release the container, in order to minimize the amount of interest you need to pay on the loan.

Online Tools and Reports

DSA Factors allows you to manage your accounts receivable online. When you get an order, simply login to our web page and submit the company for approval. All we need is your customer's name, address, phone and the amount of the order. If it is a customer you have previously factored with us, just enter their account number and the amount of the order. If you don't know an account number, just search for it on our site. Oftentimes you will get an instant approval on our web site, but if we can't approve them instantly we will try to get back to you within 30 minutes with a credit decision on the account.

In addition to giving you credit approvals online, we also give you a variety of online reports. From our web page you have access to a real-time aging statement of your accounts, detailed transmittal sheets for every payment we ever sent you, the ability to pull account statements, view sales reports, and view open or used approvals.

Why Factor With DSA?

DSA Factors may not be as integrated into your software as other fintech companies, but we work just as quickly and at a fraction of the price. In fact, we actually offer a lot of services that the other fintech companies do not offer. While it may take you five minutes longer to obtain funding from DSA, the other services we provide you will save you hours, and might even allow you to reduce your payroll.

Since DSA Factors doesn't integrate with your bank account, accounting software, or anything else, you can rest assured that when you work with us your login and passwords will be completely safe since we do not have them. We also offer you a level of privacy that the other fintech companies don't provide since we don't have access to all of your financial information at any given time.

Furthermore, DSA Factors is a family owned and operated company. Whenever you call you will always be able to speak with one of our principals, whether it is Howard, Ben, or Max Tolsky. After all, we are a small business just like you. It is unlikely you will get a chance to speak with a principal at one of the other fintech firms who have founders and investors such as Elon Musk, Jeff Bezos, or Ashton Kutcher.

By continuously monitoring the credit of your customers, you can avoid having to subscribe to expensive credit rating agencies, or risk getting phony credit references. We also manage all of your collections so you no longer have to make phone calls or send out account statements. Plus we offer you credit insurance with our non-recourse factoring program, meaning that you will never have to worry about bad debt ever again.

We also offer purchase order financing to our clients. With PO financing, we provide you with a short term loan so that you can pay your suppliers in order to procure merchandise to fulfill a large purchase order. This is funding available to you in addition to the funding you receive by factoring your invoices.

With our low flat-rate fees you know exactly how much you are going to pay for funding up front, at DSA Factors we don't charge you interest if your customers pay an invoice late. We offer same day funding and instant online credit approvals. We have no minimum volume requirements, no credit limits, and no long term commitments. Plus we have over 30 years experience in accounts receivable factoring and over 60 years experience in finance.

Want to learn more? Give us a call right now at 773-248-9000, or chat with us here on our web page, and one of our principals will be more than happy to speak with you about how we can help grow your business.

The DSA Factors Advantage

When it comes to financing your business with a Fintech company, it is important to look at the benefits and costs associated with doing so. Often times by working with a traditional factoring company, such as DSA Factors, you receive many additional benefits than you would not receive by working with a strictly Fintech company, and your costs are also minimized. Below is a comparison between DSA Factors and some of the more popular Fintech companies.

Click inside each box to expand and learn more.

AR Factoring with DSA Factors

PayPal Working Capital

BlueVine

Fundbox

OnDeck

Kabbage

At DSA Factors, there is a lot that goes into our factoring rate including credit insurance, continuing credit checks on your accounts, and handling collections. While are factoring fee is very similar to a credit card processing fee, only 1% of our fee is used to cover the advance we give you on your invoices. In fact, if you don't need an advance we will give you a 1% discount on our service. So assuming that most net 30 day invoices get paid in 45 days, the APR on the advance is 8%.
Computing PayPal's APR is a little tricky as it based entirely on your sales volume with them and the amount you are borrowing. If you have $1,000,000 in annual PayPal sales and borrow 8.3% of your annual PayPal sales (or one month of sales), the fee is between 3.7-12.3% based on your payment plan, and needs to be paid back within 360 to 540 days. This gives a modest APR of 11.2-13.5%. However, you also need to pay payment processing fees to PayPal for all payments received which is 2.9% plus an additional 30 cents per transaction on 100% of your sales. So ignoring the $0.30 transaction fees, your actual APR would include processing fees on $1,000,000 worth of payments per year and come out to 46-48%.
BlueVine charges a flat rate factoring fee of 10-15% regardless of the terms of the invoice. However, they do not provide credit insurance, continuing credit checks, or handle collections, the only service they are providing you with is the advance. Let's say that you only factor net 90 day invoices with them in order to get the best APR, your APR would still be 40-60%. For a line of credit, they offer interest rates of 0.6-1.2% per week, giving an APR of between 31-62%.
Fundbox may charge you anywhere from 4.6-12% over the course of a 12 week loan, and double that for a 24 week loan. However, interest is based on the original amount of the loan, not the principal balance, so the APR is between 62-161%. The APR can be reduced however if you pay off the loan early.
OnDeck states their average rate for a term loan is 38% plus a 2.5-4% origination fee, and for a line of credit the average APR is 29.99%. Of course these are only averages. Since their lowest APR on a 3-month loan is 16%, and their lowest APR on a line of credit is 14%, it is possible that their APR's can be 50% or more. If you try to pay off a loan early to avoid paying interest, OnDeck still requires you to pay 75% of the remaining unpaid interest, meaning that you're APR will skyrocket if you want to pay early.
Kabbage offers interest rates of between 1.5-10% based on a variety of factors, but that is a monthly interest rate that is based on the original loan amount, not principal balance, and fluctuates over the course of your loan. This translates to an actual APR between 32-108%. Although if you want to pay off a loan early your APR could be as high as 120%.
DSA offers online instant credit approvals on your accounts, real-time aging statements, the ability to view detailed transmittal sheets of every payment we ever sent you, account statements, sales reports, and more. We also allow your customers to make payments online.
PayPal Working Capital is completely integrated within PayPal, and all aspects of the loan from funding to repayment are done through PayPal.
BlueVine integrates with accounting software such as QuickBooks. They also have you give them access to your bank account. You can then submit invoices for funding via their web page or your accounting software. You can draw on a line of credit from their web page.
Fundbox integrates with your accounting software and allows you to submit invoices online for funding.
OnDeck allows you to apply online and manage your loan or line of credit from their web page.
Kabbage has you give them access to your bank account and other accounts such as Amazon, PayPal, and Etsy. They then make you an offer online, and you can pull from your line of credit online. Kabbage automatically makes withdrawals from your bank account each month to pay off the loan.
DSA Factors can be funding you the same day we receive your application, or within 24 hours of your initial contact with us. Invoices are funded the same day we receive them. For credit approvals, if the web site can't give you an instant approval, we try to get back to you within 30 minutes on all approval requests. If something is urgent you can even give us a call and we will give you an answer over the phone.
PayPal Working Capital claims that approval takes minutes and they will fund you immediately after you are approved and agree to the terms of the loan.
BlueVine processes applications within 24 hours. Initial funding is then available within 24 hours. They allow for immediate funding on invoices you submit for factoring, or you can pull from your line of credit at any time from their web page.
Fundbox can approve you for funding in just a few hours. Invoices can be submitted for immediate funding online.
OnDeck claims that you can apply for a loan in ten minutes and receive a decision in a few minutes after that. Initial funding is in 24 hours.
Kabbage claims that after filling out their online application and giving them access to your bank account and online retailer accounts, that you will be made an offer instantly and can borrow funds immediately.
DSA Factors is a fourth generation, family owned and operated business. Whenever you call you can always speak with a principal, whether it is Howard, Ben or Max Tolsky.
PayPal is a publicly traded company on the NASDAQ stock exchange. It was formerly a subsidiary of eBay.
BlueVine is privately held and funded by venture capitalists.
Fundbox is privately held and funded by venture capitalists.
OnDeck is a publicly traded company on the New York Stock Exchange.
Kabbage is privately held and funded by venture capitalists.
DSA Factors was founded in 1964 and offered consumer finance for Richard's Furniture customers at that time. We have been offering accounts receivable factoring since 1986.
PayPal was founded in 1998. The PayPal Working Capital program was launched in 2013. Their loans are issued by WebBank.
BlueVine was founded in 2014.
Fundbox was founded in 2013 and started offering loans in 2014.
OnDeck was founded in 2007. Their loans are issued by banks, including Celtic Bank.
Kabbage was founded in 2009 and started offering loans in 2011. Their loans are issued by Celtic Bank.
With DSA Factors if you are currently offering terms, you can eliminate expensive subscriptions to credit rating agencies and accounts receivable payroll. If you were accepting credit cards for payment, you eliminate credit card processing fees. You also eliminate all bad debt with non-recourse factoring as our service provides you with credit insurance.
With PayPal Working Capital, you still do business as usual. Not only can you not eliminate any expenses, but you are required to process all payments through PayPal and pay their payment processing fees.
With BlueVine, you still do business as usual. The only service they offer you is if you factor with them then they will process payments for you. But it is doubtful that you will be able to eliminate any expenses.
With Fundbox, you still do business as usual, you cannot eliminate any expenses.
With OnDeck, you still do business as usual, you cannot eliminate any expenses.
With Kabbage, you still do business as usual, you cannot eliminate any expenses.
With DSA Factors we allow you to choose which customers you want to factor invoices for. We don't require you to give us all of your business, and we have a very popular spot factoring program. At DSA Factors we have no credit limit so we can factor all of your invoices regardless of how much volume you have.
PayPal doesn't factor invoices; they also don't require that you use PayPal to process your payments. However, if you don't process payments through PayPal then you will have to payback PayPal manually and you won't qualify for another loan with PayPal in the future.
BlueVine allows you to choose which invoices you want to factor, but they also assign you a credit limit and won't advance you any funds over that limit.
Fundbox doesn't actually factor, but they will give you a loan based on receivables. You can choose which invoices you want to pull against, but they assign you a credit limit and won't advance you funds over that limit.
OnDeck doesn't factor invoices; they are giving you a loan. The loan is based on a variety of factors including your business's and your personal credit.
Kabbage doesn't factor invoices; they are giving you a loan. The loan is based on sales volume with select online retailers along with other online sources who you can provide them access to. So they are only able to look at your invoices with a small set of online retailers to determine a credit limit and interest rate.
DSA Factors will handle all of the credit checking for all of your accounts.
While your customers are required to make payments through the PayPal service, PayPal is only giving you a loan and are not concerned with your customer base.
Even though BlueVine claims to offer factoring and is funding you for your receivables, they offer recourse factoring and have no interest in your customers' financial strength. For this reason they do not provide any credit checks on your accounts. The funds they provide you with are based on your financial ability to pay back BlueVine in the event that your customers do not pay them.
While Fundbox will only fund you if you submit invoices to them through your accounting software, they are not factoring the invoices; the invoices are simply used as collateral on the loan they gave you. So Fundbox does not do any credit checking for you, and the automatic weekly repayments of the loan begin whether or not you have received payment from your customer.
OnDeck is only giving you a loan. They are not concerned with your customer base.
Kabbage is only giving you a loan. While they base the loan on a select group of online retailers and other online sources, they are not concerned with your customer base.
DSA Factors will handle all of your collection work. You no longer need to worry about making collection calls. DSA Factors also has greater leverage than you do in collecting, as we most likely factor for several other vendors who also sell to your customers.
Your customers must make payments through PayPal, but PayPal does not help with collections.
Your customers are required to make payments to a BlueVine drop box or bank account; however BlueVine does not help you collect. They may ask you to send out a letter of assignment to your customers, but even if you do, they still won't help you collect.
Fundbox is only giving you a loan based on receivables, they do not offer accounts receivable management.
OnDeck is only giving you a loan, they do not offer accounts receivable management.
Kabbage is only giving you a loan, they do not offer accounts receivable management.
DSA Factors is proud to offer non-recourse factoring to our wholesale clients, meaning that you're receivables are insured.
PayPal is simply giving you a loan based on previous sales. They do not offer credit insurance.
BlueVine does not insure your receivables, they only offer recourse factoring. If a customer doesn't send payment to them you are responsible for repaying BlueVine.
Fundbox may use your receivables as collateral on your loan, but they do not offer credit insurance.
OnDeck is only giving you a loan. They do not offer credit insurance.
Kabbage is only giving you a loan. They do not offer credit insurance.
DSA Factors has always been willing to work with startup businesses. We are proud that we have been able to help a large number of startups grow into much larger companies.
PayPal Working Capital requires you to have had a PayPal Premier or Business account for 3 months. You must have $20,000 in annual sales with a Premier account, or $15,000 with a Business account.
BlueVine requires a minimum of 3 months in business and revenues of $10,000 per month for factoring. For a line of credit you must have been in business for 6 months and have revenues of $10,000 per month.
Fundbox needs to connect to your accounting software to determine a credit limit for you and determine what your interest rate will be. As a startup business, if they are willing to approve you, you can expect a low credit limit and high interest rate.
OnDeck requires a minimum of one year in business and $100,000 in annual revenue. However, their average customer has been in business 7 years and has more than $450,000 in annual revenue.
Kabbage requires you to be in business for at least one year and have over $50,000 in annual revenue.
DSA Factors offers purchase order financing to our clients. With purchase order financing you can get a short term loan to pay your suppliers in order to fulfill a large purchase order.
PayPal loans are based strictly on your previous sales experience with PayPal. If you receive a larger than normal PO, or a PO from a company who does not pay you via PayPal, PayPal will not increase your credit limit.
BlueVine only provides funding based on accounts receivable. They cannot fund you on a purchase order. They also offer a line of credit program, but the credit limit is based on previous sales volumes.
Fundbox only provides loans based on accounts receivable. They will not provide you with additional funding based on a large purchase order.
OnDeck offers loans based on business performance, business credit, and personal credit. They do not base loans off of purchase orders.
Kabbage makes credit decisions based on your previous sales volume with select online retail sites. Should you get a larger than normal PO, or a PO from a retailer who they cannot work with, Kabbage will not increase your credit limit.
With DSA Factors we will continually fund you for all of your receivables, and there is no credit limit. We also can provide you with purchase order financing for multiple PO's at the same time.
If you already have a loan with PayPal Working Capital you must pay it off and wait three business days before you can apply for another loan. You can not have two loans out at the same time.
BlueVine will continually fund you for your receivables so long as you don't exceed your credit limit at any given time.
Fundbox will continually fund you for your receivables so long as you don't exceed your credit limit at any given time.
OnDeck allows you to continually pull against your line of credit so long as you don't exceed your credit limit.
Kabbage allows you to continually pull against your line of credit so long as you don't exceed your credit limit.
With DSA Factors we are extending a line of credit to your customers, so decisions are made based on your customer's ability to pay, not your own.
PayPal Working Capital does not base decisions on your credit, but rather on your sales history with PayPal.
BlueVine looks at a variety of factors including your business's credit as well as your personal credit. They require a personal guarantee to factor your receivables.
Fundbox requires you to give them access to your bank account or accounting software. Approval is based on what they find.
OnDeck looks at both your company's performance and credit, as well as your personal credit when making a decision about a loan. Your personal credit score must be at least 500, but most of their customers have a score of at least 660.
Kabbage may or may not pull a credit report, but they do have access to your bank account and sales records from companies such as Amazon and PayPal. If they can see your bank account, they probably have a pretty good idea about your financial strength.
DSA Factors will fund you for all of your receivables regardless of how large they are. We also offer purchase order financing.
PayPal funds you the lesser of 18% of your annual sales on PayPal or $97,000. The $97,000 limit may be raised to $125,000 for your third loan with PayPal.
BlueVine offers $20,000 to $2,000,000 in factoring based on your company's credit. They offer $5000 to $100,000 for a line of credit.
Fundbox has a $25,000 credit limit.
OnDeck offers loans from $5000 to $500,000, and lines of credit up to $100,000.
Kabbage offers up to $150,000 line of credit with a $2000 minimum loan.
The funds DSA provides you with are yours to keep.
PayPal is offering you a loan, so you are taking on new debt.
If your customers don't pay BlueVine for invoices they factor, they will require you to pay them back after 90 days. With their line of credit program they are giving you a loan, so you are taking on new debt.
Fundbox is offering you a loan, so you are taking on new debt.
OnDeck is offering you a loan, so you are taking on new debt.
Kabbage is offering you a loan, so you are taking on new debt.
DSA Factors will never you charge you any interest. We are not giving you a loan, and our flat rate factoring program means you pay the same rate regardless of how long it takes your customers to pay us.
PayPal Working Capital charges a fee, which can be viewed as interest, on the loan. The fee may be fairly small and does not change regardless of how long it takes you to pay off the loan.
BlueVine does not charge you interest for invoice factoring, they instead charge a flat rate fee of 10-15%. For a line of credit they charge between 0.6-1.2% per week.
Fundbox does charge you interest, anywhere from 4.6-12% for a 12 week loan, and double that for a 24 week loan. Unlike a mortgage, weekly interest is based on the total amount of the loan and not the remaining principal on the loan.
OnDeck is giving you a loan and charging you interest. While they say that they don't have an early payment penalty, you are still responsible for paying 75% of the unpaid interest even if you pay off the loan early.
Kabbage charges you a variable interest rate which is much higher at the start of the loan than at the end of the loan and is based on the original loan amount and not the principal balance.
DSA has no minimum volume requirements, you are not required to factor all of your accounts, and you will never be charged for invoices you don't factor. We will also factor invoices of any size, including invoices less than $100. Some of our Micro Factoring clients factor as little as $500 per month.
PayPal has no minimum loan amount, but they do require that you process at least $15,000 annually using PayPal.
BlueVine has no minimum volume requirements, you are not required to factor all of your accounts, and you will never be charged for invoices you don't factor.
Fundbox doesn't have any minimums that you must meet over a period of time, but in order to receive funding invoices must be for at least $100.
OnDeck requires you to borrow at least $5000 on a loan, and to pull $5000 on a line of credit if you want to avoid paying $20 per month fees.
Kabbage requires you to borrow at least $2000.
DSA Factors has no long term commitments, you may stop factoring at any time and there is no penalty for doing so. We also have no term to our contract so you can factor for as long as you want and never have to worry about renewals.
PayPal Working Capital loans have a term of 540 days and you are required to pay back 10% of the loan every 90 days. PayPal states they do not have any prepayment penalties, although you are still required to pay all of the interest on the loan.
BlueVine does not have any long term commitments, you may stop factoring at any time and there is no penalty for doing so. You will need to pay them for any unpaid invoices if you choose to stop factoring. On a line of credit there are no early payment penalties.
Fundbox loans are for a period of either 12 or 24 weeks. They do not have an early payment penalty and will waive any unpaid interest if the loan is repaid early.
OnDeck has steep prepayment penalties. If you pay off a loan early, you are still required to pay 75% of the remaining unpaid interest on the loan.
Kabbage states they have no prepayment penalties, although they charge you a higher interest rate at the start of the loan. You could pay as much as ten times more interest at the start of the loan than you pay at the end, meaning your APR could be as a high as 120% if you prepay.
DSA does not charge you anything for payment processing.
PayPal charges payment processing fees of 2.9% plus $0.30 per transaction.
BlueVine does not charge you anything for payment processing.
Fundbox does not process payments for you. You will need to process payments yourself and pay any associated fees for doing so.
OnDeck does not process payments for you. You will need to process payments yourself and pay any associated fees for doing so.
Kabbage does not process payments for you. You will need to process payments yourself and pay any associated fees for doing so.
DSA Factors would never automatically deduct from your bank account or do anything without your authorization. Furthermore, we are not giving you a loan; there is nothing to pay back. As a result no money will be withdrawn from your bank account.
PayPal automatically deducts a portion of your sales that are paid for through the PayPal service. If your PayPal sales do not meet the minimum repayment requirements, you will be required to pay PayPal the difference, although they will not automatically withdraw funds from your bank account.
BlueVine will make weekly automatic withdrawals from your bank account on a line of credit. If an invoice you factor with BlueVine isn't paid by your customer, you will need to manually repay them.
Fundbox makes weekly automatic withdrawals from your bank account to pay off the loan.
OnDeck makes either fixed daily or weekly automatic withdrawals from your bank account to pay off the loan.
Kabbage makes monthly automatic withdrawals from your bank account to pay off the loan.
DSA Factors will factor invoices with net 30, 45, 60, or 90 day terms. We will also factor invoices with extended terms in seasonal industries such as casual furniture and gardening products. Our flat rate fee program means that we will not charge you any interest, even if your customers pay us late.
PayPal Working Capital loans have a term of 540 days, with required payment amounts every 90 days.
Factored invoices need to be paid back within 90 days. If your customer doesn't pay for an invoice after 90 days, then you will be responsible for paying it back. On a line of credit you have up to 6 months to pay it off.
Fundbox loans are only for 12 or 24 weeks.
OnDeck loans have a term of 3 to 36 months. Lines of credit need to paid off over a period of 6 months. While they say they don't have any early payment penalties, you will still be required to pay 75% of the unpaid interest on the loan if you wish to pay the loan off early.
Kabbage offers 6 and 12 month loans.
DSA Factors has a simple two page application with basic information about your business, information on where and how to send funding, and a signed two page factoring agreement.
PayPal Working Capital doesn't require any additional information than they already have in your PayPal Premier or Business account.
BlueVine requires you to give them access to your accounting software such as QuickBooks
Fundbox requires you to give them access to your bank account and accounting software.
OnDeck requires your business TIN, credit card statements, bank statements, as well as the business owners' SSN and driver's licenses.
You need to provide Kabbage with access to your bank account, accounting software such as QuickBooks, payment processors such as PayPal and Stripe, and accounts with online retailers such as Amazon, Etsy, and EBay.

Click inside each box to expand and learn more.

AR Factoring with DSA Factors

PayPal Working Capital

BlueVine

Fundbox

OnDeck

Kabbage

How do we do all this at such a low price? Easy, at DSA Factors we don't receive millions of dollars from venture capitalists or IPO's. Instead we earned our money through hard work and dedication, just like you do. We also don't spend millions of dollars on advertising or computer software, and that money we aren't spending means that we can offer you financing at a much lower cost with better service than the larger fintech companies. If you really want to work with a company that understands small business, shouldn't they also be a small business themselves?

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

 

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DSA Factors
International Factoring Association