How Accounts Receivable Factoring Fits Into the Fintech World

Accounts Receivable Factoring in many ways predates Fintech in the field of financial technology.It may seem strange that accounts receivable factoring, a form of financing that dates back further than the Silk Road, could fit into the modern world of Fintech, an industry that is less than a decade old. However, like any business that has survived since antiquity, accounts receivable factoring has constantly evolved with changing times and in many ways pioneered the path for the new Fintech industry. While you would be hard pressed to find an a true factoring company that only exists in the online realm, you would be just as hard pressed to find a traditional factoring company that doesn’t offer a large variety of online tools.

In the same way that online banking and ATM machines have made it so many Millennials never had to write a check or step inside a bank branch location, accounts receivable factoring can now provide your business with the financing that you need without needing to walk away from your computer. In fact, here at DSA Factors we’ve been offering online tools to our clients for over a decade now. So in many ways, we were a Fintech company before Fintech even existed. But unlike Fintech, we haven’t stripped down our factoring program to only offer the services and benefits that a web page can provide. Plus we are still happy to work with clients who prefer doing things the old fashioned way, via phone, mail, and fax.

Online Credit Approvals

For years now, offering online approvals has been a standard service that accounts receivable factoring companies have offered. What this means is that when you get a purchase order, you just login to your factoring company’s portal and request an approval. Often times the computer is able to make an actual credit decision on the spot and offer you an instant online approval. Of course, as in any business, there is a limit to what can be completely automated, so in the case where the computer can’t approve an order, it gets sent to your factoring company’s office for review. When this happens at DSA Factors, we do our best to get back to you with a credit decision within 30 minutes, and will e-mail the credit decision to you.

Real-time Aging Statements

Most factoring companies will provide their clients with aging statements each week so that they know where their accounts stand. At DSA Factors we take this one step farther. At any time our clients are able to login to our portal and view a real-time aging statement.

View Transmittal Sheets

Just like how banks and credit card companies allow you to view statements online, at DSA Factors we give our clients to view transmittal sheets from our online portal. And unlike banks or credit cards that may limit you to only one or two years of statements, here at DSA Factors you can go back as far as you want to that very first payment we sent you when you first started factoring.

Access to a Variety of Online Reports

In addition to aging statements and transmittal sheets, at DSA Factors we offer our clients a variety on online reporting options. This includes being able to pull account statements for any customer. Viewing all open or used approvals. Pulling sales reports that show you how much volume each of your customers gave you over a specified period of time. Plus, if there is a report that you would like to see on the portal, all you need to do is give us a call and we will do our best to create it for you. As a family owned business, we pride ourselves on the quality service we provide our clients with, and that extends to the online services we provide as well.

Allow Customers to Pay Online

At DSA Factors we don’t just extend online benefits to our clients, but also to their customers. At any time your customers may login into our portal with a login and password we provide at the bottom of every account statement we send them so that they can view a real-time statement and make payments online. After all, don’t your customers deserve access to the same online conveniences as you.

Why Choose Accounts Receivable Factoring Over Fintech?

If the online services that we offer at DSA Factors doesn’t seem like enough, keep in mind that we offer one huge benefit that no Fintech company is able to offer. At any time you are able to pick up a phone, give us a call, and one of our principals will be able to talk to you and help you come up with a solution that works for you. That isn’t something that you will get from a large Fintech company, that is something that you can only get from a family owned accounts receivable factoring company. And the value of being able to speak with someone who can actually help you and cares about your business, is much greater than the inconvenience of being limited to only the functions that a web page is able to handle.

If you want to improve your cash flow, outsource you accounts receivable, get credit insurance, and have the convenience of being able to work online, but still want the personalized service that you deserve, give us a call today at 773-248-9000. Or if you want to go “Fintech”, feel free to send us an e-mail at info@dsafactors.com or chat with us right now on this web page.

Smartphones in a Smart Home

Smart HomeThere is no doubt that technology has changed the way we communicate and the way we shop, but smart technologies are starting to become a major part of the way we live as more and more household products become connected with smart technologies. In the same way that smartphones have had an impact on how we stay connected, soon our furniture and appliances will be connected as well.

Nearly three quarters of American adults own a smartphone, and over two thirds of US households have high speed internet connections according to Pew Research Center.  The iPhone alone has more than 75 million users in the US.

While the number of smartphone users and internet users may not come as too much of a surprise, you might be surprised by just how many of the products we find in our home are now connected to our smartphones.  The most popular item in the house connected to the smartphone is the TV.  Whether you are using the smartphone as a remote to change the channel, to record a show at home when you are at work, or to stream video off the internet, TVs offer far and away the most smart features of any product in the home.  65% of households with TVs have at least one TV that is connected to the internet.

After TVs, home security systems come next in connectivity, allowing you to monitor your home from your office, a ballgame, or even when your on vacation thousands of miles away.  Next comes audio systems which may use bluetooth technology to play music from your phone or stream music from Pandora or other popular apps.

The other most popular connected products are garage doors, indoor lights, thermostats, locks on doors, outside lights, detectors (such as smoke or carbon monoxide), and kitchen appliances.

The reasoning behind owning connected devices varies.  When it comes to TV and audio, certainly convenience plays a major factor in why consumers would want a connected product.  For home security and smoke detectors it less about convenience and more about safety.  In the case of a connected thermostat the goal might be cost savings.  But of course the most important thing to look at regardless of what product you are considering connecting is that it’s just fun!

According to HGTV, almost half of all consumers find it extremely important to have products in their home that utilize smart technologies, and over half of all homeowners would consider making their home a smart home in order to increase its value and make it more appealing to potential buyers.  It should also come as no surprise that Millennials are 10 times more likely to make a smart home improvement than any other generation.

Despite the popularity of being connected, the furniture industry has lagged behind in integrating smart technologies into their products.  However, by offering smart technologies furniture companies have a lot to gain.  Over half of consumers under the age of 50, and nearly 3 in 10 consumers over the age of 50, would be interested in a couch that offers a smartphone docking station so that they can charge their phones while watching TV.  Over a third of consumers regardless of age would appreciate a couch that has integrated reading lights.  For those under the age of 50, one third would like a couch with integrated speakers, and a little more than a quarter would like bluetooth connectivity so that they can control motion features from their smartphone or tablet.

There is no doubt that technology is changing how we live our lives.  While many companies have been focusing a lot on eCommerce and social media, it is also important that they look beyond marketing and expand technology into the products themselves.

Whether you are looking to integrate smart technologies into your current products, or you are a new start-up that just invented pants with a smartphone controlled fly, it is important that you have the funds to not only develop your product, but to keep up with increased sales volume.  While many companies look for SBA loans or investors, with accounts receivable factoring you can get the cash flow you need without taking on any new debt or giving up any portion of your company.  Call DSA Factors today at 773-248-9000 and find out just how easy it can be to get the funds you need to grow your business.

Targeting Millennials, America’s Largest Generation of Consumers

Nursery with CribMillennials, those born between 1981 and 2000, have become the largest living generation in the US with 75.3 million people, surpassing the Baby Boomers who now number 74.9 million according to Kids Today.  There are 53.5 million Millennials in the workforce compared with 52.7 million Gen Xers and 45 million Baby Boomers.

As the Millennial population continues to grow, it is important to understand them so that you can market to them appropriately.  There are two major factors that need to be looked at when dealing with Millennials.  First, Millennials are waiting longer to get married and have babies than previous generations.  In the last ten years birth rates for mothers between the ages of 20-24 have dropped by 20.6% and ages 25-29 have dropped by 9%.  However, birth rates of mothers between 35-39 have increased by 13%.

Since Millennials are waiting longer to have kids, this means that they most likely will have more money to spend once they do have kids.  They also tend to be better educated as they’ve had more time to get their bachelor’s or even master’s degrees.  This is resulting in consumers who are willing to pay more for a product if they can get more out of it.  Very often these consumers might just being willing to pay more for a higher quality product, but they also may be willing to pay a little bit more for a product that can grow with their families.

An excellent example of a product that can grow with a family are convertible cribs.  75% of moms under the age of 30 have either bought or plan to buy a convertible crib, compared to 71% of moms age 30-34 and only 62% of moms age 35-39.  Of those who have bought or plan to buy a convertible crib, 71% of them are willing to pay more for a convertible crib than a standard crib, with 34% willing to spend as much as $100-$200 more for a convertible crib.

The other important factor is the internet.  61% of Millennials will rate products and services on the web, while only 46% of the older generations will do this.  In fact 35% of mothers under the age of 35 purchase their children’s furniture online.  Of the 65% who still purchase their furniture at brick and mortar locations, most of them will do their research online before going into a store, with many of them buying exactly the product that they chose online.

For this reason it is very important for both manufacturers and retailers to provide lots of details about their product line on their web page.  But a static web page with features and specifications isn’t enough.  Companies need to offer dynamic web pages that allow for questions, reviews, and link to social media.  Over two thirds of Millennials that use social media rely on friend’s posts to influence which products they will purchase.  If your company only offers a static web page, it may be difficult to sell to this young generation of educated consumers with large incomes.

As this younger generation is quickly becoming America’s largest group of consumers, it is important that you target your products and marketing towards them.  You need to offer high quality, adaptable products, and take advantage of the internet not only for online sales, but also for marketing via social medias.  This is a big change from traditional sales methods you may have used in the past.  If you find yourself short on time to adjust your products and marketing to your customer’s needs, let DSA Factors help.  We can manage your receivables and collections while eliminating the need for you to run credit checks, allowing you to focus on more important issues such as product line, marketing, and sales, while at the same time improving your cash flow.  Give us a call at 773-248-9000 and ask about our accounts receivable factoring program today!