DSA Factors stepping up furniture factoring activity
Seeks to fill void left by GE Capital’s cutback
By Furniture Today Staff -- Furniture Today, May 21, 2008
CHICAGO — Finance company DSA Factors is looking to step in where GE Capital Solutions is stepping away.
The small Chicago-based factoring company said it is “in talks with several GE accounts to replace the giant mega-corporation” in its capacity financing industry receivables.
Earlier this month, GE Capital said its Commercial Distribution Finance division was reducing its unsecured inventory financing exposure to the furniture industry, citing “current economic and market conditions.”
GE declined additional comment on how much of a cutback it was talking about and how many companies are affected, but said it was no longer offering new credit lines under the program and was “evaluating all existing customers,” giving them “reasonable time frames to find other lenders.
Sources have told Furniture/Today that GE was giving furniture companies 60 days to find alternative financing, a move expected to put some retailers in at least a short-term cash flow bind considering the negative approach lenders are taking on furniture inventory valuations these days.
“We are in a good position to expand rapidly and to fill the void created by the retrenchment of so many other banks and financial institutions,” said Richard Peck, DSA’s founder and CEO.
DSA has noted in the past that its size limits it to working with suppliers doing $1 million to $15 million a year. But its latest news release, DSA frames itself as David to GE’s Goliath.
DSA also announced that it has secured its first contract with a Chinese upholstery manufacturer — Malss Noble, owned and operated by Zhong Rui. In addition to U.S. clients, DSA also has clients in Canada, Mexico and Italy.
-
GE Capital halts inventory financing program
May 1, 2008 -
Credit worries on rise in industry
May 5, 2008 -
GE cuts unsecured finance program to industry
May 4, 2008 -
Buying groups gain from credit crunch
Jul 20, 2008
Merinos Home Furnishings opening display room, Boyles addition
HOM Furniture adds flooring to six Twin Cities stores
Ernest Warsaw, founder of Sheffield Corp., dies at 91
‘Mega vessels' likely to boost capacity, stabilize freight rates
21 companies from Turkey, Taiwan and China to exhibit at Showtime
Featured Company
-
Wright Labels
Bill and Tom Wright founded Wright of Thomasville in 1961 on the idea that printing was a creative medium and the belief that "a promise made is a promise kept." The Wright brothers focused their attention on providing exceptional printing for the... more
VIEW ALL GALLERIES
