Your SlideShare is downloading. ×
0
Click to edit Master title style
• Click to edit Master text styles
– Second level
• Third level
– Fourth level
» Fifth le...
Complete Guide to Invoice Factoring
Unlock
Working
Capital
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.36...
Complete Guide to Invoice Factoring
Factoring
Invoices
Enables you to focus on
growing your
business
rather than chasing i...
Complete Guide to Invoice Factoring
What is
invoice
factoring?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.85...
Complete Guide to Invoice Factoring
Invoice factoring
is a business finance tool
that can give your
organization immediate...
Complete Guide to Invoice Factoring
How does it
work?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
Complete Guide to Invoice Factoring
1. Complete delivery of goods or provision of services to a customer and
generate an i...
Complete Guide to Invoice Factoring
Why factor
invoices?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
Complete Guide to Invoice Factoring
Customers with extended terms, who are slow-paying or
sometimes take 30 days or more t...
Complete Guide to Invoice Factoring
Your cash flow isn’t keeping up with operational needs or isn’t
letting you grow as qu...
Complete Guide to Invoice Factoring
What are the
benefits of
factoring
invoices?
www.DBSquaredInc.com ■ DB Squared Busines...
Complete Guide to Invoice Factoring
Create a competitive advantage by offering more appealing credit terms
to your custome...
Complete Guide to Invoice Factoring
Why work
with a non-
recourse
factor?
www.DBSquaredInc.com ■ DB Squared Business Finan...
Complete Guide to Invoice Factoring
Benefits of Non-Recourse Factoring
As a non-recourse factor, we assume the credit
risk...
Complete Guide to Invoice Factoring
Hidden
Costs+
What sets the
best factoring
companies
apart?
www.DBSquaredInc.com ■ DB ...
Complete Guide to Invoice Factoring
Hidden Costs of Invoice Factoring
When comparing factoring proposals,
remember to look...
Complete Guide to Invoice Factoring
Long term contracts with stiff penalties and lots of paperwork
to jump through for ear...
Complete Guide to Invoice Factoring
Traits that set the top invoices factoring companies apart:
• Clients retain control
•...
Complete Guide to Invoice Factoring
Checklist for comparing factoring proposals:
• What is your fee structure?
• What are ...
Complete Guide to Invoice Factoring
Why Factor with DB Squared?
Our goal is to help you get from where you are
today to wh...
Complete Guide to Invoice Factoring
We are in business to help your business succeed. We
evaluate each application by look...
Upcoming SlideShare
Loading in...5
×

Guide to Invoice Factoring (a.k.a. Accounts Receivable Financing)

191

Published on

Top invoice factoring company DB Squared describes the invoice factoring process (how invoice factoring works) and explains how it can help a business grow and become more profitable. For more information visit dbsquaredinc.com.

Published in: Business
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
191
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
6
Comments
0
Likes
2
Embeds 0
No embeds

No notes for slide

Transcript of "Guide to Invoice Factoring (a.k.a. Accounts Receivable Financing)"

  1. 1. Click to edit Master title style • Click to edit Master text styles – Second level • Third level – Fourth level » Fifth level 1 DB Squared Inc. Business Finance 866.855.3640 www.dbsquaredinc.comComplete Guide to Invoice Factoring —What is invoice factoring? —Benefits of factoring invoices —Hidden costs of invoice factoring —Questions to ask a factoring company —What types of businesses should consider factoring?
  2. 2. Complete Guide to Invoice Factoring Unlock Working Capital www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  3. 3. Complete Guide to Invoice Factoring Factoring Invoices Enables you to focus on growing your business rather than chasing invoices or performing collections. www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  4. 4. Complete Guide to Invoice Factoring What is invoice factoring? www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  5. 5. Complete Guide to Invoice Factoring Invoice factoring is a business finance tool that can give your organization immediate access to money owed to your business by your customers, without waiting 30, 60, 90 days – or even longer – for the invoices to be paid. www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  6. 6. Complete Guide to Invoice Factoring How does it work? www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  7. 7. Complete Guide to Invoice Factoring 1. Complete delivery of goods or provision of services to a customer and generate an invoice. 2. Sell the invoice to DB Squared for a fee (from 1% to 6%). 3. Receive an advance of 80% to 98% of the face value of the invoice from DB Squared on the same day. 4. We collect the full payment from your customer. 5. We return the reserve amount to you. www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640 The invoice factoring process:
  8. 8. Complete Guide to Invoice Factoring Why factor invoices? www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  9. 9. Complete Guide to Invoice Factoring Customers with extended terms, who are slow-paying or sometimes take 30 days or more to pay. Desire to offer longer payment terms to customers as a competitive advantage. Need for immediate access to working capital to take advantage of new business opportunities, take on new business, serve larger clients or accommodate big orders. Need to improve cash flow to meet operating expenses or pay vendors or suppliers more quickly. Desire to reinvest in their business more quickly. Factoring could be the right tool for your business if any of these reasons apply: www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  10. 10. Complete Guide to Invoice Factoring Your cash flow isn’t keeping up with operational needs or isn’t letting you grow as quickly as you desire. You are tired of waiting on payments from all or some of your customers. You want stronger customers, or need money in order to take on bigger customer accounts or larger orders. Your company is fairly new, so it is not yet eligible for a line of credit or other types of financing. Limited resources means you can benefit from expedited cash flow and lower costs for invoicing, accounting and collections. Factoring could be the right tool for your business if any of these reasons apply: www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  11. 11. Complete Guide to Invoice Factoring What are the benefits of factoring invoices? www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  12. 12. Complete Guide to Invoice Factoring Create a competitive advantage by offering more appealing credit terms to your customers. Factoring gives you access to working capital, which you can use to: Replenish cash flow more quickly in order to more easily manage day to day expenses. Leverage improved purchasing power to negotiate better terms or to receive volume discounts from your suppliers. Pursue bigger clients and new business opportunities. Reduce time and expenses for accounting and collections. Reduce or eliminate financial risk from bad debt. Expand or grow your business more quickly. www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  13. 13. Complete Guide to Invoice Factoring Why work with a non- recourse factor? www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  14. 14. Complete Guide to Invoice Factoring Benefits of Non-Recourse Factoring As a non-recourse factor, we assume the credit risk for factored invoices. If one of your customers is unable to pay for credit reasons, we absorb the loss – not your business! By contrast, recourse factors usually require you to repurchase invoices that remain unpaid as well as cover any legal or collections costs incurred.
  15. 15. Complete Guide to Invoice Factoring Hidden Costs+ What sets the best factoring companies apart? www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  16. 16. Complete Guide to Invoice Factoring Hidden Costs of Invoice Factoring When comparing factoring proposals, remember to look for additional costs or add- on fees — not just at the discount rate you are being offered. These fees and charges may seem small, but when you do the math you can clearly see that they quickly eat into your profits. www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  17. 17. Complete Guide to Invoice Factoring Long term contracts with stiff penalties and lots of paperwork to jump through for early release. Penalties or rate hikes that may be assessed if monthly minimum requirements (number, percentage or dollar amount) are not met. Add-on or administrative fees for: proposals, quotes, credit checks, due diligence, notification, schedules or processing invoices. Introductory rates, fees or other favorable conditions that expire . Lost customers due to poor customer service. Recourse factoring buy-back stipulations or assessment of collections or legal fees. Hidden fees that could negatively impact your revenues while factoring: www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  18. 18. Complete Guide to Invoice Factoring Traits that set the top invoices factoring companies apart: • Clients retain control • No monthly minimums • No long term contracts • No hidden fees • No schedule processing or notification fees • Professional customer service • Competitive factoring fees • High advance rates • No termination penalties or fees • No auto-renewal windows • Non-recourse factoring • Same and next day funding options • No-cost, no-obligation quotes • Free credit checks, no due diligence fees • No surprises! www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  19. 19. Complete Guide to Invoice Factoring Checklist for comparing factoring proposals: • What is your fee structure? • What are your terms? • How long does it take to get set up? • How quickly will I receive funding on factored invoices? • How do you evaluate debtors? • Can I retain control of my invoicing? • Do you have monthly minimum requirements? • Will I have to sign a long term contract? • Is there a penalty for early termination? • Is there an auto-renewal window? • Do you charge for processing invoices or schedules for payment? • Can I get free credit checks on my customers? • Are you a non-recourse factor? • Do you have the capital to grow with me? www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  20. 20. Complete Guide to Invoice Factoring Why Factor with DB Squared? Our goal is to help you get from where you are today to where you want to be tomorrow. To do this, we offer financial tools including: • Invoice factoring • Business cash advances • Merchant cash advances • Equipment leasing, including commercial truck and trailer leasing • Construction financing including factoring, equipment financing and purchase order financing www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  21. 21. Complete Guide to Invoice Factoring We are in business to help your business succeed. We evaluate each application by looking at the big picture, not just a credit score or an asset list. This personalized approach, coupled with one of our flexible business financing products, can help take your business to the next level. We would be happy to provide you with a no-cost, no-obligation quote for invoice factoring, even if you are already working with another factoring company. Work with a leader in invoice factoring! www.DBSquaredInc.com Apply at dbsquaredinc.com/apply Contact us at 866.855.3640 or info@dbsquaredinc.com www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×