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.

Furniture Buying Trends

Shopping for FurnitureA lot goes into buying new furniture for the home, after all, furniture is something that has a major impact on the look and comfort of your home and is something that you expect to last for many years. As a result, buying furniture requires a lot of research and a lot of shopping, it isn’t like picking up a gallon of milk at a convenience store. On average consumers will spend 3-4 weeks researching furniture, and purchase from a wide variety of retailers. Typically consumers will spend a lot more time researching upholstery than they do case goods, and they are much less likely to purchase upholstery from an online source.

Consumer Research Patterns

Upholstery

When it comes to upholstery, just over a third of consumers will make a purchase in 2 weeks or less.  A quarter of consumers spend 3-4 weeks researching options.  One fifth of consumers will take 5-9 weeks to make a decision, and another fifth require 10 weeks or more.  This research is done both online and in stores.  Six in ten consumers will visit stores while looking for a new sofa or chair, and three quarters of consumers will do their research online.  However, given how important it is to do research online, 45% of consumers say that they will never purchase a couch from a web site.

Case Goods

Case goods have a slightly shorter research period with nearly half of all consumers making a decision in 2 weeks or less.  Nearly a quarter of consumers will spend 3-4 weeks doing research, while three in ten consumers will spend 5 weeks or more.  Those shopping for a new dining room set or bedroom set not only do their research faster, but also do less research than those shopping for a new couch.  About seven in ten will do their research online, and just over half will do their shopping in stores.  Consumers shopping for case goods are also less averse to buying online with only 21% saying they would never purchase a bedroom set or dining room set from an online source.

Where Consumers Purchase their Furniture

Of course, at the end of the research process, consumers will eventually purchase a new piece of furniture for their home, and just like with the research, who they buy it from depends on if they are shopping for upholstery or case goods.

Upholstery

For upholstery the most popular retailers to buy from are lifestyle furniture stores, such as RH, IKEA, Crate and Barrel, and Pottery Barn, as well as traditional furniture stores.  Both lifestyle and traditional furniture stores receive business from nearly three in ten consumers.  Just over two in ten will purchase a used couch or chair, which can come from any source including second-hand stores and garage sales.  Only 7% of consumers will wind up buying a couch from an online retailer.

Case Goods

For case goods the most popular option is used furniture.  Nearly four in ten consumers will buy something used, and again from a wide variety of sources such as second-hand stores, flea markets, thrift shops, antique shops, as well as from garage sales both online and on the street, and auctions.  Another three in ten consumers prefer lifestyle furniture stores when purchasing a new bedroom set or dinette set.  Only 12% of consumers will make their purchase at a traditional furniture store.  While consumers may be less averse to purchasing case goods online than they are with upholstery, still only 7% of consumers will make their purchase from an online retailer.

What’s Next for the Furniture Industry?

Purchasing furniture is clearly a major decision for most consumers, and they may put just as much time and effort into buying furniture as they would put into buying a car or even a house.  As a result, it is important that manufacturers make sure that their product is visible to consumers while they are doing their research. In the same way that you wouldn’t buy a car without doing a test drive, or buy a house without getting a tour, consumers won’t buy new furniture without sitting down on it first. While online sales may not account for much volume, an online presence is still very important if you are trying to sell your product.

Car manufacturers and dealerships all offer excellent online sources for viewing features, options, and pricing for consumers buying a car. There are also a handful of web sites that connect to MLS for those looking to move to a new home, plus realtors tend to have excellent online tools as well.  However, when it comes to furniture, there typically isn’t much to look at on the web beyond customer reviews on Amazon.

With online research becoming increasingly important, if you do not have an excellent web page that features your product lines, combined with SEO to make your web page show up in Google searches, you are potentially missing out on a lot of sales.  Give DSA Factors a call today at 773-248-9000 to find out how we can help you grow your business.  While we may not be able to develop a web page for you, we can provide you with the cash flow you need through accounts receivable factoring to grow your business.  The funds you receive from us are yours to keep and can be spent in any way you want, from developing an online presence to attending trade shows to a new marketing campaign, or anything else. Call us today and find out just how easy accounts receivable factoring can be.

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!

Is your web site mobile friendly?

Mobilegeddon

As of April 21st Google made a major change where sites that are not considered mobile friendly will be ranked lower on searches made on mobile devices.  It is important that businesses understand these changes and make sure that their site is mobile friendly.

What does this mean?

First of all, it is important to understand exactly what these changes mean.  If your site is not mobile friendly, it will not effect search results made from desktops, laptops, or tablets.  It will only effect searches made from mobile devices such as an iPhone, Android phone, or iTouch.
It will also only effect generic, non-branded queries.  For example if ABC Furniture Store does not have a mobile friendly site and you search “furniture store” from your smartphone, ABC Furniture Store probably won’t appear in the results.  However, if you search “ABC Furniture” on your phone, ABC Furniture Store should still appear at or near the top of the results.
This change also will only effect individual sites that are deemed not mobile friendly.  For example if your home page is mobile friendly and your “Contact Us” page is not mobile friendly, then your home page will still appear in search results on smartphones, but your “Contact Us” page will appear much lower down.  Therefore even if you can’t make your entire web site mobile friendly, it would be a good idea to make at least your home page mobile friendly.
Finally, just because you didn’t update your page by April 21st doesn’t mean that Google will never show your page on a search from a phone ever again.  Google is constantly crawling the web, so once you update your web site to make it mobile friendly, Google will see it, and you will reappear on searches made from smart phones.
So how do I know if my web site is mobile friendly?
Google uses its algorithms to determine whether or not your site is mobile friendly.  There are three main things that Google looks at:
  1. Are touch elements too close?
A touch element would a link or anything else that you would normally click on while viewing a site on a computer.  On a phone since you don’t have a mouse, you need to touch these objects.  If you have two links really close together it makes it difficult for a phone user to touch the correct link.  Its very important that you make links large enough or far enough away from other links so that visitors to your site can easily touch them.
  1. Is your viewport configured?
This might be the trickiest thing to understand because what is a viewport?  Its quite simple, the viewport is simply the size of the screen you are viewing the page on.  On a tablet or computer you have a large screen so you can fit a wider web site design onto it.  However on a phone you have a very narrow screen, if your site uses a wide design then it will not fit very well onto a phone.  So you need to make sure that your mobile site uses a narrow, stream-lined design.
  1. Do you use a small font size?
This should be the easiest thing to fix.  Obviously using a small font size makes it very difficult to read your site.  Combine this with the small screens that we have on a phone and its nearly impossible to read your site.  So quite simply all you have to is use large or normal sized fonts.
To find out if Google considers your site mobile friendly you can submit it to Google’s Mobile Friendly Test.
How can this effect my business?
If most people visiting your business’s site are using a desktop computer, then this will have very little impact on your business.  However, if many people access your site from their phones then this could have a very large impact on your business.
Not only will your site appear much lower on Google searches made from a phone, but more importantly, visitors will have a very hard time reading and navigating your site from their phones.  As a result, even if they find your site, they will be less likely to read or stay on your site.
If you are at a trade show, most people you meet will be looking at your web site on their phone.  So make sure they are impressed with what they see.  A clean, easy-to-read design will leave them with a much better impression of your business.
If you have sales reps who use their phones to show your product, it is very important that your website looks good on a phone.  It can be very hard to make a sale if it is very hard to show your product.
So Google implementing these new rules can actually be a very good thing, especially if you do not have a mobile friendly site.  This might just give you the motivation to create a mobile friendly site.  And with a new mobile friendly site you might start getting a lot of new business from people who primarily use their smartphones to surf the web.
If your new mobile web site is leading to higher sales volumes and you don’t have enough working capital to keep up with it, give DSA Factors a call today at 773-248-9000.  With accounts receivable factoring you will have the improved cash flow you need to grow your business and take on more and larger orders.