Factoring Services
Our factoring service can help improve your cash flow by providing an immediate injection of cash against the value of your outstanding invoices. Many small to medium size businesses experiencing growth are in need of receivable factoring.
By using this unique financial service, businesses can easily manage their cash flow, increase sales by offering customers open credit terms, and avoid cash flow shortages due to slow paying customers.
1st Commercial Credit provides factoring services for businesses that are growing faster than their operating capital. In order for businesses to keep suppliers and payroll current, they utilize our factoring financial services to fill in the cash flow gap that is usually caused by selling open credit terms or uneven sales patterns.
We offer a full range of financial solutions specifically designed to assist you in acquiring a flexible source of funds that matches your business requirements.
Factoring Rates
at 1.59%
for
30 days
View recent transactions
Many factoring companies offer
factoring services, but the question for a prospect looking for a
receivable financial service is "How
do I know what factoring company is right for me?".
Receivable financial
services may vary by companies that offer it.
1st Commercial Credit is very flexible in accepting
various industries, and services may include but not limited to
accounts receivable collections and management, credit analysis, and
online reporting of real time account status.
While banks typically need a history of profits and audited financials, 1st Commercial Credit provides factoring facilities with much more flexibility with regard to documentation, credit, and record keeping issues.
In some cases, companies that qualify for a bank credit line today, may find themselves with inadequate funds for growth in the near future.
We can accommodate businesses that have outgrown their bank line by (a) buying out the bank credit line using the receivables to leverage out the buyout or (b) the bank will subordinate the accounts receivable to us in order to provide a factoring arrangement with the prospective client.
For the most part, factoring companies establish credit limits by evaluating your customer’s ability to pay, not yours. Your factoring credit facility will be virtually unlimited for future growth and will be based on accounts receivable owed by credible clients.
Factoring Services is available in days, not weeks.
The process is simple with a more basic credit analysis focusing on the quality of the account debtors (your customers). Most funding transactions (depending on the industry) may take only 3 to 5 working days.
At 1st Commercial Credit, we make receivable financing easy to
obtain with minimal paperwork.
This financial solution involves very little underwriting. Our clients can enjoy the benefits of our prompt service and begin to use their funds within days of completing an application.
Using Receivables as Collateral
Businesses that sell on credit terms
have a hidden asset that most owners do not realize can be used for
collateral. Our factoring service requires collateralizing the
receivables in order to advance funds against them. The receivables are pledged as collateral and the business may draw cash against the eligible accounts receivable at any time.
Factoring, also known as business receivable financing is not a loan, so there is no need to make payments or create debt to your business.
Business Qualifications for
Factoring
Our financing programs can accommodate companies with seasonal or uneven sales patterns or start-up operations with no financial base to rely upon. Any business can qualify for receivable financing if it generates sales on open credit terms to customers with financial credit strength. Most of our clients are trying to find a solution to finance their growth or whose past earnings will not justify a traditional loan or credit line increase.
What Industries Qualify for Receivable Factoring Services?
Every industry is evaluated differently because no industry invoices the same method. Not all factoring companies accept every industry. As a rule of thumb, your business must sell to a good credit worthy account debtor (customer), a receivable or invoice that can be verified or has an acceptance (signed off) by the account debtor. Receivable
factoring services is available to all industries that provide services, or deliver products to commercial accounts. The sale must be "final sale" with no contingencies or disputes. The service or product must be completely delivered in order for an invoice (receivable) to be eligible for funding.
Account Receivable Financing Frequent Questions |
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