
Frequently Asked Questions
Q: What
are the benefits of Account Receivables Funding?
There are several reasons to
sell your receivables, they include:
-
Get Cash Quickly-
Generate cash flows now to pay for immediate
expenses.
-
Avoid the Effects of
Inflation- Time erodes the buying power of money, and getting the cash
owed to you now will allow you to collect the full value of your earnings.
-
Avoid Losing Interest
Yield- Rather than earning a lower interest rate on the current income
stream you own, you can sell your note for less than face value and earn a
higher interest rate from other investments.
-
Lower Your Risk-
Receive your money upfront to avoid the risk of delinquency.
Q: How
long will it take to receive my cash?
Once a client provides all of the appropriate
information, a typical cash flow financing transaction takes less than 14
business days to process.
Q: How
much do your services cost?
Our service fees are paid
directly by the factoring agent who purchases your receivables or notes. Your
overall factoring costs will vary and are based on both the type of cash flow
financing and the fees charged by the funder. DGN will strive to find the most
cost-effective buyer for your receivables. Please fill out one of our online
applications or contact us for a specific quote on your company’s cash flows.
Q: My
credit isn’t great, can I still qualify for Accounts Receivable Funding?
In assessing your eligibility
to factor accounts, DGN will examine the credit quality of your customers. Your
company's creditworthiness will not necessarily become part of a decision to
approve or deny your account. Instead, DGN Funding will focus on evaluating your
clients to determine whether and how quickly they will pay their invoices.
Q: How
does Accounts Receivable Funding compare to a bank loan?
In many situations, Accounts
Receivable Funding is more appropriate than bank financing because it provides
continuing cash flow without the requirement of periodic payments or interim
payoffs. Accounts Receivable Funding, sometimes called Factoring, gives a
business increased access to cash as sales and receivables increase and offers a
dependable, continuing method of generating cash flows without the necessity of
making separate loan applications. Additionally, a client’s ability to raise
cash by Accounts Receivable Funding is based on the total Accounts Receivable,
rather than on the traditional measures of financial strength and stability used
by banks.
Q: I am
interested in Equipment Leases, would DGN be able to facilitate this
transaction?
Yes, DGN Funding is not
limited to the income stream specialties indicated on the website. Please
contact DGN Funding Services for complete information about the various ways we
can generate cash flow for your business.
Q: Will
receivables funding affect the status of current or future bank loans?
Generally, no. Receivables Funding only takes a security interest in your
accounts receivable. Your assets are unaffected and available as collateral for
other lenders and should not affect future loans. However, receivables funding
may not be available in situations where banks have already taken a security
interest in your accounts receivable. Please contact DGN Funding for specific
information about your cash flow financing options.
1-877-865-7906
inquiries@dgnfunding.com
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