Flexible Financing Programs
Depending on your needs, you may choose a traditional invoice factoring program where we advance the same percentage to you on each eligible invoice you submit or you can choose an AR financing program where we set up a line against your invoices with a small administrative fee.
We’ll help you decide which is right for you.
More Value Added Services from DTF!
Credit checks and monitoring we can save your company time by making sure you are working with quality customers. Use our services to confirm we will purchase the invoices and other information about your customer and alerting you to brokers, shippers, or other firms that do not pay promptly.
Invoice creation, mailing and account maintenance reduce the delay between completion of your services and billing for those services. This reduces the time it takes to receive payment on your invoices and increases your cash flow.
Online Reports and Check View Systems allow you to monitor your accounts 24 hours a day. There is no need to wade through faxed paper reports of your account collection activity. Online reports are built with advanced security to protect your information and privacy.
Collections we will handle following up on payment from your customers, faxing missing paperwork, etc., so you can focus on making money. We are not a hard core collection firm, but just by having an organized approach to getting invoices paid, we will collect on invoices faster. Quicker collection means lower fees to you.
Cash Application DTF receives your payments and applies them to your invoices making the funds immediately available. This will assist your back office in monitoring your accounts receivable.
Have questions? Check out our FAQs!
How does AR Financing Work?
Upon successful and satisfactory completion of your services and/or delivery of your products, submit your invoice information, bills of lading, and other supporting documents to DTF, either by mail or through electronic means (e-mail or FTP). We will verify the acceptance of the products or services and advance you a predetermined percentage on each invoice by the following business day. Upon payment to DTF by your customer, we will rebate back to you the remaining portion of the invoice less any service fee.
Why use a factoring company instead of a bank?
There are advantages of both. For companies who are growing fast, need flexibility or don't have the strongest balance sheets, factoring can be a great fit. One advantage of factoring is that available funds mirrors a companies sales; and generally, expenses. As a company has more sales and invoices, there is more to borrow against. That gives more flexibility than a static line of credit. Another advantage is that factoring provides outsourced services for the company they are funding. We provide credit management so you know who to provide credit, we will do light collection work, and we will apply cash to your invoices as it is received.
Is there a difference between factoring and AR financing?
Really, no. However many shops use the terms to distinguish between a invoice by invoice program versus using all submitted invoices to create a pool of collateral from which to advance a line of credit. This is sometimes called a Net Funds Employed program. You will generally pay a small administration fee for each invoice you submit as the factor will take care of collections and cash application on each invoice. However, the second component of the fees will be simple interest on the funds you actually borrow, just like a line of credit. This can be a great structure for a fleet that does not need a maximum advance all of the time.
What is the advantage of financing equipment with my factoring company?
At DTF, we like to provide equipment finance for our factoring clients. We can provide a little more flexibility in payments, down payment, rate, equipment types because we see our client's cash flow on a daily basis. We can structure an arrangement to fit your needs.