Besides factoring specific invoices (accounts receivable), there might be a need for some advance funding. This is sometimes called Purchase Order Financing. For example your company might be working very hard to land a large order from a customer. Let’s say your hard work pays off and you finally procure the order. But now you have a problem. You need to produce this large order and you need to purchase the goods to fulfill the order. Your suppliers may not be willing to extend terms to your company for the purchase of the merchandise that you need to acquire in order to fulfill the order. That’s when DSA Factors can come to the rescue.
Upon presentation of the purchase order, DSA Factors can lend your company enough money to cover either the full cost of the entire order or at least the portion of the cost of the merchandise that the supplier is demanding payment for. Then once the merchandise is received and invoiced to the customer, DSA Factors will fund the value of the invoice to your customer and deduct the ‘advance’ that was already paid, and remit the balance of the funds to your company.