Factoring your accounts receivables, or invoices, is an easy and effective way of improving your cash flow without taking on any new debt. When you work with a factoring company, such as DSA, you are able to offer customers terms without having to wait to get paid. Unlike getting a loan from a bank, factoring is not a loan but rather a sales transaction. You sell the factoring company your receivables and receive instant cash for them; it is then the responsibility of the factoring company to collect the payments when they are due. So the factoring company doesn’t just help increase your cash flow, but also takes care of collections, allowing you to focus on what you do best. Your customers will always be treated with respect by the factoring company, as the factoring company’s success is entirely dependent on your success. Factoring can be extremely beneficial to any business, from small start-ups to larger well established companies.
Welcome to Factoring 101, a blog intended to teach you everything you need to know about factoring your accounts receivable. In this blog we will be discussing what factoring is, the benefits of factoring, and keeping you up to date on the latest news on factoring and related industries.