Purchase Order Financing vs Accounts Receivable Factoring

Purchase Order Financing vs Accounts Receivable FactoringThere are many different financing options available to businesses that could use improved cash flow. Two of the more popular options are purchase order financing and accounts receivable factoring. Often times PO financing and factoring are considered alternative financing options, as the process is much faster and easier to obtain than a traditional SBA loan from a bank. While these two methods are related, have similar benefits, and often times can even work together, they still are very different forms of financing.

Improved Cash Flow

While both purchase order financing and accounts receivable factoring are great ways of improving your cash flow, the main difference is when you receive the improved cash flow. With PO financing, you receive funding to pay your suppliers with once they provide you with a purchase order.  With factoring you get funded once you invoice your customers.

Since the money is out longer, and isn’t backed up by a receivable yet, PO financing is typically more expensive than factoring. However, for very large purchase orders, traditional accounts receivable factoring may not be able to provide you with enough cash flow to pay your suppliers so that you can fulfill the purchase order. In these situations purchase order financing may be necessary. As a general rule, accounts receivable factoring is a better way to maintain healthy cash flow for your business, while purchase order financing should be used for extremely large purchase orders.

Debt vs No Debt

Another big difference between purchase order financing and accounts receivable factoring is whether or not you are taking on new debt. In the case of factoring you are not taking on any new debt, instead you are selling your receivables at a discount in order to get improved cash flow. With PO financing, you are taking on new debt.  PO financing provides you with a loan based on a purchase order.  This loan can get paid off if you factor the resulting receivable, or once your customer pays you for the resulting receivable. However, it is still a loan that uses the purchase order, and resulting receivable, as collateral. As a result, you are taking on new debt with purchase order financing.

Credit Limits

Since accounts receivable factoring and purchase order financing are both alternative forms of lending, they don’t come with the strict credit limits that a traditional loan from a bank would assign you based on your company’s credit. Accounts receivable factoring is probably the only form of financing that does not come with any credit limit. With factoring there is no limit to how much your factoring company can advance you. Since factoring is an ongoing relationship, as your receivables grow so does the advance you receive. Factoring is based on your customers’ ability to pay, not your own. With purchase order financing, it is typically looked at on a case by case basis and the amount of the advance is limited to a certain percent of the purchase order’s value. So similar to factoring, the larger the PO, the larger the loan. However, you will not receive one hundred percent of the purchase order value.

Credit Insurance

Whether or not you receive credit insurance is another difference between purchase order financing and accounts receivable factoring. If your factoring company offers non-recourse factoring, then that means that you receive credit insurance when you factor an invoice. With purchase order financing, since there is no receivable yet, you are not receiving credit insurance. That said, if your customer you are looking for PO financing on is not credit worthy, then their purchase order may not qualify for PO financing. On the other hand, once a purchase order is fulfilled and invoiced, by factoring the invoice you will receive credit insurance on it.

Accounts Receivable Outsourcing

When you factor an invoice, you are doing much more than just receiving an advance and getting credit insurance, you are also outsourcing your accounts receivable. Your factoring company will perform all of the credit checking as well as collection work. This can result in significant cost savings as you will not need to subscribe to expensive credit agencies and also may allow you to avoid hiring extra employees to manage your accounts receivable. With purchase order financing, most likely the company providing you the funding will still run credit checks on your customer, they do not manage your accounts receivable for you. You are still responsible for sending out account statements and making collection calls.

Should I Use Purchase Order Financing or Accounts Receivable Factoring?

There is no clear cut answer to this question, it depends on your needs. For most small to medium sized businesses accounts receivable factoring is not only more cost effective but also provides you with additional service such as credit insurance and accounts receivable outsourcing. However, while factoring allows you to maintain healthy cash flow, it may not provide you with enough cash flow if you need to pay your suppliers to fulfill a larger purchase order. In these situations purchase order financing may be necessary.

At DSA Factors we actually recommend using accounts receivable factoring to maintain healthy cash flow and reduce costs. The cash flow you receive from factoring may provide you with enough funds to avoid needing purchase order financing. However, you may still use purchase order financing from time to time as needed.  As a result we offer our factoring clients the ability to obtain PO financing when needed.

While there are companies that only provide purchase order financing, they often times may take a week to a month or more to provide you with funding. Typically they only work with foreign suppliers and finished products that are being shipped directly to your customers from overseas. Their interest rates tend to be variable and often times higher than what a factoring company might offer you on a similar loan.

By factoring your invoices and having your factoring company provide you with purchase order financing as necessary, you will most likely receive a better rate and a quicker response when you need purchase order financing. At DSA Factors we make PO financing decisions in a matter of minutes, and can fund you the same day you call us about a PO. We also don’t require you to work with foreign suppliers, we don’t require you to be purchasing finished products, and you can ship to your customers yourself. Because you are shipping to your customers yourself, if the order isn’t for a full container, you will be able to fill up the container with additional merchandise for smaller PO’s or just for inventory. Since we will also be factoring the resulting invoice for you, we can also offer you a lower interest rate on the loan you receive and reduce the time that the loan is out for. Plus you get all the benefits that come with factoring, credit insurance and accounts receivable outsourcing.

Another benefit to working with an accounts receivable factoring company is that by factoring invoices on a regular basis, you are developing a healthy working relationship with a financial partner. In the future, as your company’s needs change, your factoring company may be able to offer you additional services to facilitate growth. By securing purchase order financing through a PO financing company, it is typically a one-time deal, and you don’t get the opportunity to develop a working relationship with them.

To learn more about how accounts receivable factoring and purchase order financing can be used together to help grow your business, give DSA Factors a call at 773-248-9000. We are a family owned and operated business that works with clients nationwide. Whenever you call DSA, you will always be able to speak with a principal, whether it is Ben, Max, or Howard Tolsky. With over 30 years experience offering factoring and PO financing to our clients, we have money to make your company grow!

Financing a Startup Business with Accounts Receivable Factoring

Finance your startup business with accounts receivable factoringOften times for a new startup business, it can be difficult to obtain financing. SBA loans are usually out of the question as banks will want to see a track record and will require collateral that a startup business most likely wouldn’t have. Venture capital is an option, but is usually reserved for tech companies that have a huge potential for growth, plus often times it requires you to give up ownership of your business. However, accounts receivable factoring is a great way for a startup to finance their business without having to give up any ownership or taking on new debt.

What is Accounts Receivable Factoring?

Accounts receivable factoring is a type of financing where you sell your receivables to a factoring company for a discount. For startups the main benefit is that you get funded the same day you invoice your customers rather than having to wait 30 days or longer for them to pay you for goods or services that you have already provided them. As a result you have healthy cash flow so that you can take on more orders as well as larger orders without having to worry about how you will pay your suppliers. Since you are selling your receivables to your factoring company, the funds they provide you with are yours to keep, there is no need to repay your factoring company as your customers will be paying them once their invoices become due. As a result accounts receivable factoring is one of the few financing options available that doesn’t require you to take on any new debt.

Additional Benefits of Accounts Receivable Factoring

While improved cash flow may be the main reason a startup business would use accounts receivable factoring, it isn’t the only one. Since your factoring company is relying on your customers to pay their invoices in order to get repaid, your factoring company will also handle all of the credit checking for you. For a startup business the last thing you want to do is spend several thousand dollars subscribing to a credit agency so that you can determine whether or not an order you receive is from a credit worthy company. Your factoring company will also handle all of your collection work so there is no need for you to spend time making collection calls and no need to purchase accounts receivable management software. Finally, with non-recourse factoring, your receivables are insured against non-payment for financial reasons. So if one of your customers goes bankrupt or out-of-business you still get to keep the funds that your factoring company gave you.

How Does My Startup Business Qualify for Accounts Receivable Factoring?

Unlike a traditional bank loan, accounts receivable factoring is not a loan, your factoring is instead extending a line of credit to your customers. As a result, your factoring company isn’t too concerned with your company’s credit or your personal credit, but rather with your customer’s good credit. So as long as you are selling to reputable businesses you qualify for accounts receivable factoring.

How Much Funding Can My Startup Business Receive with Accounts Receivable Factoring?

With accounts receivable factoring there is no limit to how much funding you can receive. The amount you are funded is tied directly to how much you have in receivables. So as your receivables grow so does the amount of funding you receive. While your factoring company will assign credit limits to your customers, since you are not receiving a line of credit there is no limit to how much you can get funded.

So What’s the Catch?

Obviously there are fees associated with accounts receivable factoring and these fees can vary based on which factoring company you choose to factor with. At DSA Factors we offer a flat rate factoring fee, meaning that we do not charge you interest if your customers do not pay their invoices on time. The factoring fee we charge is very similar to a payment processing fee that you would pay to take a credit card. So if you can afford to take a credit card, you can afford to offer your customers net 30 payment terms with accounts receivable factoring. While every factoring company charges a factoring fee on each invoice they purchase, these rates do vary and you may be subject to other fees as well. At DSA Factors we do not have any annual fees, there are no fees for setting up new accounts, we have no minimum volume requirements, and we have no long term commitment. Please read our article on how to find the lowest rate for accounts receivable factoring to learn more about what types of fees you can expect to pay for factoring.

What if I Need Additional Help Financing a Large Purchase Order?

Sometimes waiting until you invoice to get funded isn’t enough, especially if you need to pay your factory for a container before they will release it. In situations like this your factoring company may offer you purchase order financing. Purchase order financing is a short term loan that allows you to pay for a container in order to fulfill a large order. Even though you may not qualify for a business loan, since you have developed a relationship with your factoring company, and you will be factoring an invoice as a result of the purchase order, your factoring company may be willing to give you a short term loan to finance the purchase order.

So How Do I Get Started With Accounts Receivable Factoring?

Factoring is a fast and easy process where credit decisions are made in minutes, not months. Getting started is easy, give DSA Factors a call today at 773-248-9000. With just one call you can be well on your way to getting the financing your startup business needs to succeed. We can be funding you for your invoices in as little as 24 hours.

Traditional Factoring vs Fintech

Accounts Receivable Factoring vs FintechThere has been a lot of talk in the news about fintech (financial technology) lately.  Certainly there is a lot to be said about alternative approaches to financing over more traditional methods offered by the banks. However, accounts receivable factoring has always been an alternative financing method over what the banks offer, and has a long track record of success. In fact, many of the fintech companies even offer factoring programs, but they tend to be bare bones versions of factoring that only offer some of the benefits gained by factoring, and oftentimes even charge higher rates than traditional factoring companies.

The factoring industry has been around for a long time. It was well established in Europe when the original colonists brought it over to America. In fact, the king and queen of Spain offered a form of factoring to Christopher Columbus when he wanted to set sail for the “New World”. While this may seem antiquated in our modern technology driven world, the fact is that most factoring companies do take advantage of modern technologies, offering most of the benefits of fintech, but with much more experience, a proven track record of helping to grow small to medium sized businesses, and much lower rates.

To see the difference, the chart below compares traditional factoring with DSA Factors to similar programs with PayPal Working Capital, Bluevine, and Fundbox, three of the more popular fintech companies offering similar programs to invoice factoring.

 DSA FactorsPayPal Working CapitalBlueVineFundbox
DSA FactorsPayPal Working CapitalBlueVineFundbox
Take on New DebtNo, the funds DSA provides you with are yours to keep.Yes, PayPal is offering you a loan, so you are taking on new debt.Maybe, if your customers don't pay BlueVine, they will require you to pay them back after 90 days.Yes, Fundbox is offering you a loan, so you are taking on new debt.
Credit LimitNo, with DSA Factors we will fund you for all of your receivables.Yes, the lesser of 18% of your annual sales on PayPal or $97,000.Yes, $20,000 to $500,000 based on your company's credit.Yes, $25,000.
Based on Your CreditNo, since DSA is giving your customers a line of credit, credit decisions are made based on your customer's good credit.No, the loan amount is based on your annual sales volume with PayPal.Yes, BlueVine will assign you a credit limit based on your credit worthiness.Yes, Fundbox determines your credit limit based on your credit worthiness.
Charges You InterestNo, DSA offers a flat rate factoring fee.Yes, the interest is charged to you up front when you get a loan, regardless of how long it takes to pay the loan off.No, BlueVine also offers a flat rate program, but at 10-15% their rates are at least triple or quadruple the rate that DSA offers.Yes, based on the size of the loan, Fundbox may charge you anywhere from 5-12% over the course of a 84 day loan.
Term LimitNo, DSA Factors has no problem working with extended terms.Yes, PayPal requires you to pay back 10% of the loan every 90 days, with the full amount due in 540 days.Yes, if payment has not been received after 90 days, you are required to pay back BlueVine.Yes, you must pay off the loan in 12 weekly installments.
Collections OutsourcingYes, DSA Factors handles all of your collection work.No, your customers must make payments through PayPal, but PayPal does not help with collections.No, your customers are required to make payments to a BlueVine drop box or bank account, however BlueVine does not help you collect.No, Fundbox does not handle collections for you, it is strictly a loan that you need to pay back.
Insure Your ReceivablesYes, with DSA's non-recourse factoring your invoices are insured against non-payment.No, PayPal only does payment processing for you.No, if an invoice has not been paid after 90 days of being funded for it, you are required to pay back BlueVine.No, Fundbox is strictly a loan that must be paid back in 12 weekly installments.
Choose Which Invoices You FactorYes, DSA Factors does not require you to factor all of your receivables.No, a percentage of all payments made through PayPal will be applied towards your loan.Yes, you can choose which invoices you want to get funded on.Yes, however there is a $100 minimum in order to get funded for an invoice.
Minimum Volume RequirementNo, at DSA Factors you are not required to factor a certain amount, and there are no annual fees.Yes, PayPal requires you to pay back 10% of the loan every 90 days if you aren't doing enough volume.No, BlueVine does not require you to fund a minimum amount each year.No, Fundbox does not require you to draw a minimum amount each year, however, they will not fund you if an invoice is worth less than $100.
Long Term CommitmentNo, with DSA Factors you can stop factoring at any time, but since many of our clients have been with us for over 20 years, we don't think that you will want to stop.No, once your loan with PayPal is paid off you can start looking for alternative sources of financing.No, BlueVine allows you to stop drawing on your line of credit at any time, but you will need to pay them back for any invoices that they have not received payment on.No, once you have paid off your loan with Fundbox, you are free to pursue other financing options.
Charge Payment Processing FeesNo, DSA will never charge you for processing a payment.Yes, you are required to accept payments through PayPal and pay their payment processing fees.No, although BlueVine will funnel all payments into their account without your customers knowing that BlueVine is receiving the payment.N/A, Fundbox does not process payments.
Available TechnologyDSA offers its clients an online portal where they can get automatic approvals, view agers, remittance reports, and other reports in real time. Your customers may also go online to make payments.With PayPal you get a loan online and customers make payments online.BlueVine requires the use of Quickbooks or similar software to get funded.Fundbox requires the use of Quickbooks or similar software to get funded.
Good Old Fashioned ServiceAs a family owned and operated business, you can call DSA at any time and speak with a principal who can come up with creative solutions to help grow your business.PayPal doesn't even list a phone number on their web site.BlueVine may have a phone number, but it is doubtful that you will be able to speak to anyone who can actually help you.Fundbox may have a phone number, but it is doubtful that you will be able to speak to anyone who can actually help you.

As you can see, traditional accounts receivable factoring with DSA Factors offers all of the benefits that the fintech companies offer, along with many more.  You still get an online portal where you can efficiently do business and your customers can make online payments, but you also can pick up a phone and speak with one of our principals at any time.  As a result, we can come up with creative solutions for your business that might not fit into a fintech company’s software, such as purchase order financing.  So if you are looking for ways to finance your business, go with a time-tested method that works, accounts receivable factoring.  Give DSA Factors a call today at 773-248-9000 and we can be funding you in as little as 24 hours.

How to Find the Lowest Rate for Accounts Receivable Factoring

Finding the Lowest Factoring Rate
If one number is all that mattered, then every business would work with the same factoring company that gives the lowest rate. However, a lot goes into a factoring rate and it’s important that you understand exactly what that rate means.

There are a lot of different accounts receivable factoring companies out there, and for most businesses looking to factor, the biggest concern is how much factoring will cost them. While a low factoring rate is very important, it is also important to make sure that when you get two different rates that you are comparing apples to apples. It isn’t only looking at services such as advance rates, approval rates, or recourse vs non-recourse, but also looking at fees and interest charges. So while you could call five, ten, fifteen, or even twenty factoring companies to find out their rates, it might not be so clear-cut as to which company is the cheapest and provides the best service. This article will show you how to find the best factoring company for your business.

Adjustable Rate Factoring vs Flat Rate Factoring

Adjustable Rate Factoring

There are two different types of rates that a factoring company may charge you. The most popular type of factoring these days is adjustable rate factoring. With adjustable rate factoring the factoring company will offer what seems like an impossibly low rate, they may advertise anything from .5% to 1% as a base rate for factoring your invoices. However, they will then charge you interest from the day they advance you the money until payment is received and then they will add an additional 10 days for payment to clear the bank.  The way that this interest is computed can vary, but it is most common for factoring companies to use blocks.  A block may be a period of 10, 15, or 30 days.  For each block that passes, the factoring company will charge you an additional fee.  For example, if a factoring company offers a .5% base rate and uses 15 day blocks and charges 1% for each block, this how you would be charged for factoring an invoice.  Lets say the invoice is purchased on July 1st, then you will be charged the base rate of .5% for factoring on that day, in addition you will also be charged 1% for the first 15 day block.  On July 15th if payment has not been received yet and cleared the bank, then another 1% will be charged for the 2nd 15 day block. Lets say payment is received August 10th, you will be charged another 1% on July 30th, and on August 14th, since the factoring company is still waiting for the funds to clear the bank, you will be charged a final 1%.  As a result, your overall costs for factoring the invoice will be 4.5%.

Flat Rate Factoring

With a flat rate factoring program your factoring fee is much easier to compute. If you are offered a rate of 4% then that is exactly how much money you will pay for factoring the invoice, regardless of how long it takes your customer to pay your factoring company. While the base rate may appear much higher with flat rate factoring, the actual rate you pay to factor an invoice is typically lower, especially if your customers don’t pay their invoices early.

Service Differences

While the overall rate may be the main reason why you choose to go with an adjustable rate or flat rate for your accounts receivable factoring, it is also important to consider the service that goes along with these two different rate structures. With an adjustable rate, the longer it takes your factoring company to get paid, the more money they make. As a result, an adjustable rate factoring company has little motivation to collect from your accounts until they start to become seriously past due. With a flat rate factoring program, your factoring company is very motivated to collect from your accounts when the invoices become due. This motivation to collect doesn’t just affect how much you pay for factoring, but can also affect if future orders from your customers get approved. If a customer is past due on your invoices, then they won’t get approved until they catch up. As a result a factoring company with an adjustable rate may not be able to get you approvals in a timely fashion causing your customers to become upset.

The Advance – Improved Cash Flow

Perhaps the most important reason why companies want to factor their invoices is because of the advance that provides them with the improved cash flow they need. When choosing a factoring company, the most important question should be if they provide an advance and how long it takes. Most factoring companies should be able to provide you with an advance on your receivables within 24 hours, or even the same day. A factoring company who is offering you rates to good to be true may not be providing you with an advance. After that you need to look at the rate of advance. All factoring companies hold back money in reserve, but some companies hold back more than others. However, rather than advertise how much they hold back, factoring companies prefer to advertise how much they advance. So if a factoring company holds back 10%, then they have an advance rate of 90%. Advance rates can vary anywhere from 75%-90%, so it is important to make sure that you are getting a high advance rate.

Recourse vs Non-Recourse Factoring

Another benefit of factoring is the insurance that it provides on your receivables. A company that offers non-recourse factoring will insure your receivables against non-payment for financial reasons, meaning for example, that you will not be on the hook if a customer of yours goes bankrupt. However, if your factoring company only offers recourse factoring then they are not providing you with any insurance, and you will be have to pay them back if one of your customers files for bankruptcy.

Approval Rate and Credit Limits

Because a factoring company may be insuring your receivables, they are also assuming some risk. How much risk they are willing to take can vary. As a result it is important that you choose a factoring company with a high approval rate. It is also important to learn about how your factoring company assigns credit limits. It is important that your factoring company assigns your customers a credit limit based strictly on your business with them. Some factoring companies assign a single credit limit to a business that applies across all of their clients, as a result, if another client has orders that reach that credit limit, your orders will get turned down until that other client’s invoices are paid off.

Hidden Fees and Commitments

Of course the last thing you want is to get a bill from your factoring company asking you to pay a bunch of hidden fees. Many factoring companies may charge you fees for day-to-day operations such as running a credit report. Other companies may charge you annual fees or fees for not meeting minimum volume requirements. While some companies may lock you into a long-term contract and will charge you fees if you choose to stop factoring or want to change factoring companies. Another thing to consider is whether you are required to factor all of your accounts. Some factoring companies will require you to factor all of your accounts, including ones that pay on credit card, meaning that you will be forced to pay factoring fees even on accounts that you don’t factor. It is important that you look at these fees as they of course affect the overall rate that you are paying to factor your receivables.

Service and Benefits

Finally, the last thing you need to look at it is the service and benefits that your factoring company can provide you with. When it comes to service, many larger factoring companies will treat you simply as a number and assign you to an account manager who may not be able to make difficult decisions. Often times these larger factoring companies are owned by banks or are headquartered overseas, meaning that it may take them a long time to make simple credit decisions. With smaller factoring companies, and especially family owned companies, you will always be able to speak with one the companies principals, and quick turn-around times on credit decisions or anything else are another advantage that they offer. Of course, sometimes you need a little bit more than just factoring, so it is important to look at some of the other benefits factoring companies may offer.

Purchase Order Financing

Sometimes when you get a large order from a major retailer you may need a little extra help fulfilling the order. As an importer you may need to pay the overseas factory to start production, and certainly they will want payment in full before a container is released. As a manufacturer you may need funds to purchase additional materials so that you can start production. Whatever the case may be, some factoring companies offer purchase order financing, which is basically a short term loan based on the purchase order so that you have no problem getting the order fulfilled. Even if you don’t need purchase order financing right now, it is important to choose a factoring company that offers it to their clients as you never know if you one day may need it.

Small Business Loans

Some factoring companies may even offer their clients small business loans in addition to factoring services. If you might need a loan from time to time, whether you need to pay to attend a trade show, or you are developing a new product line, it is nice to know that your factoring company may be able to help you out. Since you will have established a working relationship with your factoring company, they will be much more likely to offer you a loan than a bank, and will also make a decision much quicker.

Choosing the Right Factoring Company

As you can see, there is a lot that goes into choosing the right factoring company for your business. At DSA Factors we offer low, competitive, flat rate factoring fees with the personalized service that you would come to expect from any family owned and operated business. Our clients receive non-recourse factoring with a 90% advance rate. Furthermore, we have an approval rate of over 95% and most companies get approved instantly when submitted on our web page. We have no hidden fees, no minimum volume requirements, and no long term commitments. We also offer purchase order financing to our clients and have offered small business loans to clients who we have developed a working relationship with. DSA Factors is well known throughout the factoring industry as one of the best companies to work with, earlier this year we were named by Factoring Club as the Best Micro Factoring Company for 2016. If you are looking for a factoring company to help grow your business, give DSA Factors a call at 773-248-9000, and find out just how easy factoring can be.

Factoring Your Receivables at a High Advance Rate

High Advance RateWhen you are looking for a factor, one of the most important things to consider is how much you get advanced.  Many factoring companies will advertise 70% or even 80% advance on your receivables.  At DSA Factors we offer you 90%-100% advance on your receivables.

Of course, if you are new factoring, you might ask why not advance at 100%?  It’s simple, all factoring companies take reserve, this protects them against credits your accounts may take for damaged merchandise or any other problems they may have.  It is very common for factoring companies to take 20% or more in reserves.  In fact, there are some factoring companies that won’t even pay you until they get paid from your accounts.

At DSA Factors we know that it is important for you to get all of your money as soon as possible.  For that reason we only take 10% in reserves when you first start factoring with us.  So lets say your first batch of invoices is worth $5000, we advance you $4500 and hold onto $500.  We then receive payments of $3000 and you submit your next batch of invoices for $5000.  At this point your overall balance is $7000, so we will need to keep $700 in reserve.  That means that we will advance you $4800 and only hold back $200, that’s a 96% advance on your invoices!  If you continue with a similar pattern, soon we will be advancing you 100% on your invoices.  See the table below for a clearer picture of how this works:

DateInvoices SubmittedPayments ReceivedOverall BalanceAdvanceHold BackReserveAdvance Rate
June 1$5,000.00$0.00$5,000.00$4,500.00$500.00$500.0090%
June 15$5,000.00$3,000.00$7,000.00$4,800.00$200.00$700.0096%
June 25$3,000.00$4,000.00$6,000.00$3,000.00$0.00$700.00100%
July 5$6,000.00$5,000.00$7,000.00$6,000.00$0.00$700.00100%

 

As you can see, it doesn’t take very long to build up your reserves to a level where you can get advanced 100% on your receivables.  Furthermore, those reserves belong to you, so should business ever slow down you could request we send your reserves back to you, and then build them back up once business starts to pick up again.
It is important when selecting a factoring company you pay close attention to how much money they will advance you.  After all, one of the benefits of factoring is improving your cash flow, and if your factoring company is holding back more than they should be, then they aren’t doing their jobs.
If your factoring company is advancing you at anything less than 90-100%, give DSA Factors a call today at 773-248-9000.  Its time start getting PAID for your receivables!