Accounts Receivable Financing (Factoring)

DIcentral is the first EDI portal vendor in the country to provide convenient, easy access to customers needing from $5,000 to $3+ million in accounts receivable financing per month. DIcentral customers tend to be rapidly growing and feel the strain in working capital as their average accounts receivable collections can range from 30-60 days.

Financing your accounts receivable allows you to reduce your outstanding accounts receivable from 45 or more days to one day, which provides you with a steady, reliable stream of cash.

ediFN

Today the practice of purchasing invoices based on unpaid receivables is a flourishing business.

In fact, thousands of small business owners would not be in business today were it not for this type of financing. That need has led to the development of an all-new product from DIcentral -- ediFN, a financing network designed to help DIcentral’s small business customers grow.

Many small businesses have difficulty getting conventional loans because small companies have little if any collateral to pledge to a loan. Through factoring, financial institutions can buy your existing and future uncollected receivables. Put simply, factoring companies “buy” money owed to you. You get your cash, and the factoring institution handles the collection of your receivables.

How much does factoring cost?

Your final financing cost will depend on the overall financial health of your company, the credit quality of its account debtors (customers), how long the average accounts receivable collection cycle is, and how much a company finances per month. After a brief evaluation of your unique circumstances, it’s usually possible to provide a close approximation of cost for management evaluation.

The application process

The process of initially evaluating your accounts receivable financing needs and opportunities simply requires a short interview with one of DIcentral’s finance sources. You are matched with a finance source who can provide the best balance of financing volume, low cost, and accounts receivable advance rate.

After a brief telephone conversation with one of DIcentral’s financing sources, a proposal can be generated quickly. Once a company has accepted a financing proposal, first funding can often occur within one to three weeks.

DIcentral protects your privacy and will not provide any information to any third party unless authorized to do so by you.

Each of the financing sources will maintain complete privacy of any prospective customer’s financial and proprietary information and will not release it to any third party (including DIcentral) unless authorized to do so by its prospective or current customer.

All of your eligible accounts receivable may be financed under this program, not just the accounts that are handled through EDI. You always have the choice not to finance invoices as well.

ediFN partners can often finance clients with IRS or tax issues. Our network can help you prearrange valuable “in bankruptcy” financing if you’re considering filing for bankruptcy.

Benefits of using accounts receivable financing

Accounts receivable financing particularly works well for seasonal businesses and businesses that focus on large project work requiring an initial large working capital balance to begin working on the project.

Fast growing businesses often discover that lost opportunity costs can be very high when they are not able to take advantage of new profitable sales opportunities because of cash flow. Access to a strong accounts receivable financing line of credit can solve this problem.

For more information on Accounts/Receivable Financing :

 

 
 

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To find out more details or answer specific questions, email sales@dicentral.com or call (281) 480-1121.

 


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