Most Popular Industries We Fund
Accounts Receivable Loans
At 1st Commercial Credit, our accounts receivable lending (Or Advancing) service is a flexible source of funds for businesses. We specialize in financing the growth of distributors, manufacturers, service providers, transportation companies and exporters.
Lending on accounts receivable is what we do by advancing funds against your accounts receivable. Due to our expertise and knowledge in the industries we fund, we can provide higher advance rates with competitive fees.
Accounts receivable lending is not a loan as most people refer, it is more like and advance or purchase of the receivable, so there is no need to make payments or create debt to your business.
Call Now 1 800 876 6071
Click Here for a Quote Rates At 0.69% - 1.59%
How to borrow money on your receivables?
In the past, it was common for businesses to use banks for all of their financial needs. However, as the economy changes, it is clear that there is a need for small businesses to have more than one way to meet their borrowing requirements. Banks put the risk on business owners by giving money in exchange for property collateral. Conversely, a profitable alternative is invoice borrowing or accounts receivable loans. To use services that allow you to borrow money on your receivables, all you need is an unpaid invoice.
Receivable Loans Can Correct Your Cash Flow Problems
Whether you offer a service or a product, you must wait for your clients to pay their bills. While you wait for the check to clear, you may lose an opportunity to invest capital or extend credit to your clients. On the other hand, if you have access to a majority of that cash immediately, your ability to expand your business becomes much easier. Instead of waiting through the process of having your property appraised by the bank, you can have a line of credit extended to you based upon any of your unpaid invoices. This way, slow-paying customers are no longer an issue and you can pay your staff, cover operational expenses, purchase new inventory, pay for unexpected expenses and solve other problems.
- Financing Rates at 0.69% - 1.59%
- No Financials - No monthly minimums - No invoice minimums
- No facility fees - No audits - No up-front fees - No hidden fees
- Set up account in 3 to 5 working days - 24 hr funding thereafter
- Credit Lines starting at $5,000 & up to 10 million
- Customer referrals upon your request
- We Make Same Day Decisions
Call Now 1 800 876 6071
How Do Factoring Companies Provide Account Receivable Loans?
When you have an invoice that has gone unpaid for an extended period, you may be losing money in unexpected ways. For example, other bills that you want to pay may have late fees. An empty bank account can quickly cause checks to bounce, and fees to incur. In other words, sometimes it is better to lose a small percentage on your unpaid invoices than pay larger amounts as time goes on. This is the idea that makes financing factoring companies appealing. In some cases, a company with an unpaid invoice can receive up to 97 percent of the original sum. While they may lose $3 for every $100 of the invoice, most companies feel it is better to have the cash today than wait for an invoice to become delinquent.
The Benefits of Borrowing Money on Accounts Receivable
When you are a new business, it is beneficial to build your credit. By borrowing on your receivables, you will be able to earn credit points each time. You can also avoid stiff penalties (and credit report demerits) for forgetting your monthly repayment to the bank.
Other benefits of borrowing money on receivables are:
- Paying for temporary staff
- No need to hire staff to manage invoices
- Ability to award bonuses to staff
- Access to a short-term credit line
- No need to be approved by the bank system
- Covering workman’s compensation insurance claims
- Reduction of annual overhead attributed to unpaid invoices
- Ability to repay the invoice or except upfront one-time payments
- Avoiding bankruptcy
- Evading defaulting on your loans
Although there may be factoring companies in your local area, you can easily set up an account with similar services online. Once you have your paperwork verified, your transaction will be completed within a short time. After your first transaction, it will be much quicker to process any future cash payouts. Unlike bank loans that require you have equal property collateral, invoice factoring services can allow you to borrow much more. This means that you do not need to worry about only having $500,000 in personal property when you need to borrow $1.5 million to cover your current invoices. In the end, it is clear that it does not matter if you are a small business or a multinational corporation because you can find much needed solutions by borrowing money on your receivables.
1st Commercial Credit offers:
- Creative financing structures responsive to the unique characteristics of your business.
- Streamlined credit committee structure that can provide you with rapid and decisive response the same day.
- Credit line increases in conjunctions with your sales growth.
Call Now 1 800 876 6071
What kind of business can qualify for accounts receivable loans?
Any business can qualify for an accounts receivable credit line If:
- Sell credit worthy businesses.
- Have not pledged accounts receivable as collateral.
- Sell to commercial accounts (or generate consumer contracts).
Most of our clients are either:
- Fast growing companies whose past earnings and sales histories will not justify the increased borrowing necessary to acquire needed raw materials and supplies.
- Start-up operations with no financing base to rely upon or companies with seasonal or uneven sales patterns.
- Principals with bad credit and cannot obtain traditional financing.
At 1st Commercial Credit, our receivable factoring service is a flexible source of funds for businesses. We are a factoring company that simply utilizes your accounts receivable as the collateral and advance money against the face value of your invoices. Financing receivables is a credit line that grows proportionately with your sales cycle and we can fund as little as $5,000 a month and up to $10 million for larger companies.
We've got you covered
We offer lending services in the United States, Canada and the UK
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Call Now1 800 876 6071Click Here for a Quote Rates At 0.69% - 1.59%
Most Popular Links:
- Accounts Receivable Loans
- Accounts Receivable Funding
- Invoice Factoring
- Invoice Lending Services
- Cash Flow Lender
- Factoring Services
- International Factoring
- Bank Factoring
- Invoice Discounting
- Payroll Funding
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