Turning Receivables Into Cash Since 1998
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Factoring

Is Factoring the right cash flow solution for your company?

We understand small business and specialize in funding companies with 15k or less a month in receivable. For companies doing 15k and up we have a network of lenders that provide AR Factoring and ABL lines of credit. Large or small we can get your cash flow needs taken care of either way.

Discover how AR factoring can supply your company the working capital it needs to meet all your day to day business obligations.

We understand the pressures of running a small business and as the saying goes cash is king. AR Factoring is not the solution for every business however we want to help business owners fully understand this financial tool and together answer that question.

Unfortunately many CPA’s, Bankers, Attorneys and advisors are not fully knowledgeable about AR Factoring and may give the wrong advice swaying a business owner that desperately needs funding away from the opportunity to secure funding with Factoring when they would qualify and actually survive and thrive because of it.

We would love to speak with you and answer any questions you have and help you determine if this financial tool is the right choice for your company. We want you to have all the information possible so you can run your business with confidence and have the capital you need to take your company as far as you can. Fill out the form below for a free no obligation and confidential consultation.

Factoring: Converting Accounts Receivables Into Capital

Keeping the cash flowing is a challenge for all businesses. Does your company face cash flow challenges because of slow paying customers? Have you been forced to decline new opportunities because of cash flow issues?

As every business owner knows, sales alone do not measure the profitability of a company. For example, sales may be increasing but a company may have to wait weeks or even months for payment. During that time, your company cannot purchase materials for more orders, meet payroll, or basic operating expenses. The solutions may be Accounts Receivable Funding (also known as “Factoring”) provided through Diversified Funding Services, Inc. Accounts Receivable Factoring is quickly becoming a popular choice for its flexibility and rapid injection of needed capital.

Why Accounts Receivable Factoring is a Popular Choice in Today’s Business World

Take a look at the Profit Comparison Chart to see how factoring accounts receivables can improve your bottom line!

Profit Comparison Currently With Factoring
Annual Sales $1,000,000 $2,000,000
20% Gross Profit $200,000 $400,000
Overhead $60,000 $80,000
Cost of Factoring N/A $60,000
Net Profit $140,000 $260,000
Net Additional Income $120,000

Accounts Receivable Factoring has been in existence for several decades. Today, virutally any-size business that extends credit to other businesses for goods or services can enjoy the many benefits of Accounts Receivable Factoring.

Simply stated, Accounts Receivable Factoring is the exchange of creditworthy commercial accounts receivable for an immediate injection of working capital. When an invoice is generated, it may be purchased with an advance of anywhere between 75% – 90% of the net invoice amount. When your customer pays the invoice, you will receive the reserve portion minus a nominal servicing fee.

Why Accounts Receivable Factoring Makes Financial Sense

Accounts Receivable Factoring offers many Advantages:

  • Initial Funding is typically available between 5 – 7 business days upon receipt of completed formal agreements, and then all future advances are funded within 24 hours.
  • Accounts Receivable Factoring does not create a financial liability on your company’s balance sheet and generally no other collateral(outside of the receivables) is required.The amount of funding available to you is only limited by the credit worthiness of your customers instead of your financial history.
  • Accounts Receivable Factoring allows quick access to working capital,instead of waiting 30, 60 or 90 days to receive payment from your customers, money is immediately available on demand.

Here is our “Top 10 List” of reasons you should consider alternative funding solutions:

  1. Unlimited capital. The only financing source that grows with your sales, that we know of, is factoring. Factoring your accounts receivables allows you to constantly have the ability to meet increasing demand, therefore, as sales increase, more money becomes immediately available to you.
  2. No debt incurred. Factoring is not a loan, therefore you are not incurring any debt. This can make a very attractive balance sheet, which makes it easier to obtain other financing or to ultimately sell the company.
  3. Elimination of bad debt. The risk of bad debt is fully assumed by any non-recourse factor, thus eliminating this expense from your income statement.
  4. Offer credit terms to your customers. Factoring your accounts receivables allows your business to be more competitive by offering credit terms to potential and current customers without the risk of a negative cash flow impact.
  5. Leverage off your customers’ credit. A company doesn’t need to be credit worthy to factor its invoices. In fact, it’s not necessary to be in business for three years, or to be profitable, or to meet any other conventional lender qualifications in order to factor accounts receivables. Simply have a credit-worthy customer, and you can qualify for a factoring arrangement.
  6. Establish good credit for your business. Paying your company’s bills in a timely manner is no challenge with improved cash flow. Factoring accounts receivables makes cash immediately available to keep cash flow steady.
  7. Invoice processing service. You can greatly reduce your cost of processing invoices. Our factoring services handle most of the work. Mailing invoices (addressing envelopes, stuffing them, paying for postage), posting invoices to a computer system, depositing checks, entering payments on the computer and producing regular reports can be delegated to the factor.
  8. Professional collections. A good factoring company can handle collections more professionally and more productively than you can internally. This could translate into further cost savings for your business.
  9. Factoring is fast and easy. Generally, no tax returns, personal financial statements, business plan, projections, etc. are necessary to process a factoring application. Usually, within about one week of receipt of signed contracts, your factoring account is established. Thereafter, accepted invoices are converted to cash within 24 hours. Bureaucracy prohibits banks from processing that fast.
  10. No loss of business equity.  Ownership percentages are unchanged with a factoring arrangement (unlike most venture capital arrangements).

Even More Benefits of Factoring:

  • Meet seasonal demands
  • Improve creditworthiness
  • Regulate cash flow
  • Take early pay discounts
  • Meet payroll
  • Cash available “On Demand”
  • Your “credit line” grows with your business
  • No tax returns, audits or financials needed
  • No restrictions on use of funds
  • No other collateral needed
  • No debt created
  • Quick & easy qualification process
  • Minimal paperwork
  • Supplier discount advantages
  • Volume discount advantages
  • Eliminate early payment discounts to customers
  • Detailed management reports
  • Invoices are paid faster
  • Focus business growth efforts
  • No geographical limits
  • Credit screening
  • Credit monitoring
  • Early-warning detection of customer service problems
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Increase Working Capital & Cash Flow.

Diversified Funding Services was founded in 1998 by Mark Little with the mission to provide businesses the opportunity to obtain critically needed cash flow for their companies with Account Receivables financing, traditionally known as Factoring.

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Diversified Funding Services, Inc
125 Habersham Drive / Suite C
Fayetteville, GA 30214
Toll Free: (888) 603-0055
Phone: (770) 603-0055
Fax: (770) 603-9823