South Dakota factoring companies buy your accounts receivable and advance you a percentage of the money. You receive the balance when the customer pays the invoice minus a fee. If your business has grown so much that your accounts receivable are much larger than your cash on hand, now’s the time to look for factoring companies. South Dakota receivables factoring companies will buy your receivables and you’ll pocket much needed cash that you can then reinvest in your business.

You can also use a South Dakota factoring company if you want to expand your business. Rather than taking a loan and going into debt, sell your invoices to a SD factoring company to help your business grow. You can use the cash you receive to buy more inventory, hire more people or upgrade your equipment.

If you run a South Dakota-based business, consider the following when looking for South Dakota receivables financing:

1. Check out local South Dakota factoring companies.

2. Find an online factoring company to handle your South Dakota receivables factoring.

3. Select a nationwide factoring company that has factoring companies in South Dakota.

Action Steps
The best contacts and resources to help you get it done

Check local South Dakota invoice factoring companies to receive the personal touch

Use local factoring companies in SD. They will provide more personalized service for your South Dakota invoice factoring business than national companies.

I recommend: Pierre Factors provides cash in 24 hours, advances up to 90% of your receivables and has no hidden fees. They are located in Pierre, SD.

Look for reliable online factoring companies that can handle your South Dakota A/R factoring

When looking at online factoring companies you need to look at the history and the ease of approval by the factoring company. Also, take into consideration the rates the company charges for handling your South Dakota accounts receivable (A/R or AR) financing.

I recommend: Alliance One has account executives who have been in the finance business for more than 30 years. It specializes in factoring to small and mid-size businesses. Crestmark Commercial Capital Lending, LLC has been in business since 1991 and provides SD factoring to every size business. Capital Plus, founded in 1990, offers South Dakota receivables factoring to any business. It offers up to 85% advanced rates, helps you build your credit and gives you much needed cash when you need it.

Find a national company that can handle your South Dakota receivables financing

Even though local South Dakota business factoring companies are likely to provide more personalized service, there are some excellent national companies that can handle your South Dakota A/R financing.

I recommend: Commercial Capital LLC has representatives in every state and offers factoring to small and mid-size businesses. It has rates as low as 1.5% and advances as high as 90%. ONAN Commercial Lending is a division of ONAN Capital Holdings, Inc and provides financing to small and medium sized businesses nationwide. Rexford Funding is a nationwide company that has account executives who have been in the finance business for more than 30 years. It is committed to bringing South Dakota invoice factoring to small businesses. LSQ Funding Group, founded in 1996, works exclusively with small to mid-size businesses. They have representatives in South Dakota.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Getting a loan in South Dakota is difficult for new businesses. Factoring companies in South Dakota offer you an alternative since factoring is not a loan, and your customers' ability to pay is the basis of your approval.
• •  Make sure you understand the terms of the factoring company in South Dakota that you decide to engage. The amount of the advance on your accounts receivable can vary from 65% to 97%, and the fees vary from 1% to 5% of your receivables.