Accounts Receivable Factoring, also known as invoice factoring, is an easy way for any business that is actively generating accounts receivable to get immediate cash. The funds received from the factoring of an invoice can be used for any business purpose, such as payroll, hiring new employees, new equipment, vehicles, product development or marketing.
How Invoice Factoring Works
The diagram below shows how Accounts Receivable Financing works along with a simple explanation:
Step 1 – DBR buys an invoice for goods or services that have been delivered.
Step 2 – Up to 80% of the invoice amount is funded on the same day the invoice is purchased.
Step 3 – When DBR receives payment for the invoice, the 20% reserve less DBR’s fees is rebated.
Setting up a new factoring account with DBR is quick and easy. Here is what we need:
1. Your company must have been in business for at least 1 year and must be generating accounts receivable.
2. We need a signed application containing information about your business and its owners. When we receive this information, we will quote fees and a Factoring Agreement will be put in place.
3. We need copies of the invoices you wish to factor and your written assignment of payments for those invoices to DBR.
4. When everything is in place, DBR will provide you with same day funding.
If everything goes smoothly, we can set up a new factoring account and provide funding within 3-4 days.
Accounts Receivable Factoring Company
Diversified Business Resources, Inc. has provided accounts receivable factoring services for Southern California businesses for over 28 years.
No matter what credit problems you may have had in the past, it is rare that something in your past will prevent DBR from finding a way to quickly get you the funding you need through accounts receivable factoring.
Business experts always say: “The one thing that makes the difference between a successful company and a company that is struggling is having access to adequate business capital.”
The first step to get your business set up for invoice factoring is submission of an application so we can quickly qualify your business and tell you how much funding we can provide. Click the link below to submit an application for the money you need now.
AR Factoring converts your invoices into immediate cash.
AR Factoring does not increase your debt.
AR Factoring improves your cash flow.
AR Factoring is based on the credit of your customers.