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.