Live Chat
How Invoice Factoring WorksUse invoice factoring to access up to 98% of an invoice amount and put it to work to grow your business - without waiting for your customer to pay.

How the Process of Factoring Invoices Works

Factoring Fees as Low as 1% — Advances to 98%

Companies in the business of factoring invoices have been part of the fabric of the economy in western civilization for hundreds of years. While the process of factoring invoices might vary from one factoring company to another, the basic process of factoring invoices with DB Squared works like this:
invoice factoring process

The Process of Factoring Invoices with Us

Your business sells products or services to another business or entity; for each order fulfilled, an accounts receivable invoice is generated.

Rather than managing the invoice yourself, and waiting weeks or even months for your customer to make payment, you decide to sell the invoice to an invoice factor – a company that factors (or buys) the invoice at a discount.

If this is your first time factoring invoices with us, you would apply and request a proposal. Once approved as a factoring client, the customers whose invoices you want to factor are notified and agree to make payment directly to DB Squared.

You receive immediate access* to up to 98% of the full amount of each invoice you sell us – money that could otherwise be tied up for weeks or even months as a receivable. The remainder is placed in reserve, pending payment of the invoice by your customer.

Once payment is received by DB Squared and the amount of the invoice is satisfied, the reserve amount less invoice discount (which usually ranges from 1-6%, per the proposal we agree upon) is forwarded to you as well.

*Same day and next day funding available for our regular factoring clients
how invoice factoring works

Who Should Consider Factoring Invoices?

The need for consistent cash flow is the most common reason companies consider factoring invoices.

For instance, you might need immediate access to working capital tied up in your receivables in order to keep your business growing, take on new business, expand your product or service capabilities, cover operating expenses, or to maintain cash flow consistent with the financial needs of your business.

Businesses considering factoring invoices in order to reinvest in their business more quickly often cite one or more of these reasons:
  • Customers (which could be other businesses, government agencies or other types of entities) with terms extending out beyond 30 days or more
  • Customers that routinely take longer than 30 days to pay
  • Need for immediate access to working capital to take advantage of new business opportunities
  • Need for immediate access to working capital in order to take on a big account or order
  • Need for more consistent cash flow to meet operating expenses
  • Negotiating power with their own vendors and suppliers
  • Capital expenditures such as equipment purchases, repairs, renovation or expansion

 
what is receivable financing

The Benefits of Factoring Invoices with DB Squared

Work with a team whose combined experience factoring invoices exceeds 100 years!
  • We are a non recourse factor (find out more about recourse vs. non recourse invoice factoring)
  • We focus on long term relationships with our clients, and that includes the care with which we approach and manage the process of invoicing and collecting payments from your customers
  • No hidden fees and no surprises; your proposal will outline any and all fees that apply, as well as the percentage of invoice total that will be advanced, held in reserve and discounted
  • No application, proposal, due diligence, processing, notification or funding fees*
  • Same day funding options available for established clients who factor invoices with us
  • We are proud members of the International Factoring Association.

*Small, flat rate wire transfer fees apply to same day funding only
 
  request receivables financing proposal
the invoice factoring process

Factoring Invoices with a Non Recourse Factoring Company

DB Squared is a Non-Recourse Factoring Company
There are two types of factors that businesses considering factoring invoices could choose. One is a non-recourse factor like DB Squared. Non-recourse factoring is less common in today’s economy because non-recourse factors like DB Squared assume the credit risk for the invoices we purchase.

Find out more about factoring invoices with recourse vs. non recourse factoring companies


Same Day Funding! 

Once approved, our clients appreciate our same day funding options, low fee and high advance rates - up to 98% of the amount of a factored invoice. 

Factoring Quick Quote

Request a free, no obligation quote or get more information about receivables financing:
 











Subscribe to updates?:


 Security code



DB Squared Inc.

Business Finance

866.855.3640
253.344.5960

Fax 206.835.7994

Email info @ dbsquaredinc.com


SITE MAPLOCATIONSCLIENT LOGIN

Recent Updates

 

Follow Us

 
 
Subscribe

* Email
* First Name
* = Required Field