Top invoice factoring company DB Squared describes the invoice factoring process (how invoice factoring works) and explains how it can help a business grow and become more profitable. For more information visit dbsquaredinc.com.

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DB Squared Inc.
Business Finance
866.855.3640
www.dbsquaredinc.comComplete Guide to Invoice Factoring
—What is invoice factoring?
—Benefits of factoring invoices
—Hidden costs of invoice factoring
—Questions to ask a factoring company
—What types of businesses should consider factoring?

2. Complete Guide to Invoice Factoring
Unlock
Working
Capital
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

3. Complete Guide to Invoice Factoring
Factoring
Invoices
Enables you to focus on
growing your
business
rather than chasing invoices
or performing collections.
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

4. Complete Guide to Invoice Factoring
What is
invoice
factoring?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

5. Complete Guide to Invoice Factoring
Invoice factoring
is a business finance tool
that can give your
organization immediate
access to money owed to
your business by your
customers, without waiting
30, 60, 90 days – or even
longer – for the invoices to
be paid.
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

6. Complete Guide to Invoice Factoring
How does it
work?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

7. Complete Guide to Invoice Factoring
1. Complete delivery of goods or provision of services to a customer and
generate an invoice.
2. Sell the invoice to DB Squared for a fee (from 1% to 6%).
3. Receive an advance of 80% to 98% of the face value of the invoice
from DB Squared on the same day.
4. We collect the full payment from your customer.
5. We return the reserve amount to you.
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640
The invoice factoring process:

8. Complete Guide to Invoice Factoring
Why factor
invoices?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

9. Complete Guide to Invoice Factoring
Customers with extended terms, who are slow-paying or
sometimes take 30 days or more to pay.
Desire to offer longer payment terms to customers as a
competitive advantage.
Need for immediate access to working capital to take
advantage of new business opportunities, take on new business, serve
larger clients or accommodate big orders.
Need to improve cash flow to meet operating expenses or pay
vendors or suppliers more quickly.
Desire to reinvest in their business more quickly.
Factoring could
be the right tool
for your
business if any
of these
reasons apply:
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

10. Complete Guide to Invoice Factoring
Your cash flow isn’t keeping up with operational needs or isn’t
letting you grow as quickly as you desire.
You are tired of waiting on payments from all or some of your customers.
You want stronger customers, or need money in order to take
on bigger customer accounts or larger orders.
Your company is fairly new, so it is not yet eligible for a line of
credit or other types of financing.
Limited resources means you can benefit from expedited cash
flow and lower costs for invoicing, accounting and collections.
Factoring could
be the right tool
for your
business if any
of these
reasons apply:
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

11. Complete Guide to Invoice Factoring
What are the
benefits of
factoring
invoices?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

12. Complete Guide to Invoice Factoring
Create a competitive advantage by offering more appealing credit terms
to your customers.
Factoring
gives you
access to
working
capital,
which you
can use to:
Replenish cash flow more quickly in order to more easily manage day to
day expenses.
Leverage improved purchasing power to negotiate better terms or to
receive volume discounts from your suppliers.
Pursue bigger clients and new business opportunities.
Reduce time and expenses for accounting and collections.
Reduce or eliminate financial risk from bad debt.
Expand or grow your business more quickly.
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

13. Complete Guide to Invoice Factoring
Why work
with a non-
recourse
factor?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

14. Complete Guide to Invoice Factoring
Benefits of Non-Recourse Factoring
As a non-recourse factor, we assume the credit
risk for factored invoices. If one of your
customers is unable to pay for credit reasons,
we absorb the loss – not your business!
By contrast, recourse factors usually require
you to repurchase invoices that remain unpaid
as well as cover any legal or collections costs
incurred.

15. Complete Guide to Invoice Factoring
Hidden
Costs+
What sets the
best factoring
companies
apart?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

16. Complete Guide to Invoice Factoring
Hidden Costs of Invoice Factoring
When comparing factoring proposals,
remember to look for additional costs or add-
on fees — not just at the discount rate you
are being offered.
These fees and charges may seem small, but
when you do the math you can clearly see
that they quickly eat into your profits.
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

17. Complete Guide to Invoice Factoring
Long term contracts with stiff penalties and lots of paperwork
to jump through for early release.
Penalties or rate hikes that may be assessed if monthly minimum
requirements (number, percentage or dollar amount) are not met.
Add-on or administrative fees for: proposals, quotes, credit checks,
due diligence, notification, schedules or processing invoices.
Introductory rates, fees or other favorable conditions that expire .
Lost customers due to poor customer service.
Recourse factoring buy-back stipulations or assessment of collections or
legal fees.
Hidden fees
that could
negatively
impact your
revenues
while
factoring:
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

18. Complete Guide to Invoice Factoring
Traits that set the top invoices factoring companies apart:
• Clients retain control
• No monthly minimums
• No long term contracts
• No hidden fees
• No schedule processing or notification fees
• Professional customer service
• Competitive factoring fees
• High advance rates
• No termination penalties or fees
• No auto-renewal windows
• Non-recourse factoring
• Same and next day funding options
• No-cost, no-obligation quotes
• Free credit checks, no due diligence
fees
• No surprises!
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

19. Complete Guide to Invoice Factoring
Checklist for comparing factoring proposals:
• What is your fee structure?
• What are your terms?
• How long does it take to get set up?
• How quickly will I receive funding on factored
invoices?
• How do you evaluate debtors?
• Can I retain control of my invoicing?
• Do you have monthly minimum requirements?
• Will I have to sign a long term contract?
• Is there a penalty for early termination?
• Is there an auto-renewal window?
• Do you charge for processing invoices or
schedules for payment?
• Can I get free credit checks on my
customers?
• Are you a non-recourse factor?
• Do you have the capital to grow with me?
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

20. Complete Guide to Invoice Factoring
Why Factor with DB Squared?
Our goal is to help you get from where you are
today to where you want to be tomorrow.
To do this, we offer financial tools including:
• Invoice factoring
• Business cash advances
• Merchant cash advances
• Equipment leasing, including commercial truck and trailer
leasing
• Construction financing including factoring, equipment
financing and purchase order financing
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640

21. Complete Guide to Invoice Factoring
We are in business to help your business succeed. We
evaluate each application by looking at the big picture, not
just a credit score or an asset list. This personalized
approach, coupled with one of our flexible business
financing products, can help take your business to the next
level. We would be happy to provide you with a no-cost,
no-obligation quote for invoice factoring, even if you are
already working with another factoring company.
Work with a leader in invoice factoring!
www.DBSquaredInc.com
Apply at dbsquaredinc.com/apply
Contact us at 866.855.3640
or info@dbsquaredinc.com
www.DBSquaredInc.com ■ DB Squared Business Finance ■ 866.855.3640