Accounts receivable financing is used by businesses to convert sales on credit terms for immediate cash flow. 1st Commercial Credit adopts a quick and simple approval process and expedites initial funding in 3 to 5 working days.
1st Commercial Credit provides a variety of purchase order financing solutions to meet your trade financing needs. P.O. financing is suitable for any wholesaler, reseller, importer or any company that purchases and resells goods.
1st Commercial Credit is a factoring company helping Alabama businesses by delivering the funds when businesses need them the most. Once we set up a customer's account for our receivable-based financing program, we can offer other financial instruments like purchase order financing, supply chain financing, and short-term cash advances.
Alabama businesses can take advantage of these financial solutions when they experience seasonal sales or other fluctuating capital demands. Our decision-making is within hours when a client requests additional working capital once a business factoring line of credit is set up.
1st Commercial Credit specializes in evaluating and financing accounts receivables. This financial solution involves minimal paperwork. The approval process is simple, and initial funding is given within a few working days. Our clients enjoy the benefits of our services and begin to use their funds within days of completing an application.
Unlike other Accounts Receivable Factoring Companies, 1st Commercial Credit makes receivable financing easy to obtain with a short application process involving minimal paperwork. We do not base funding decisions on financial statements. Instead, we evaluate the invoicing process and the credit record of the accounts debtors (or buyers).
1st Commercial Credit will provide the funds so your Alabama (AL) business can continue growing and retaining clients. Invoice factoring is a financial solution used to help cover operating expenses, payroll, or new opportunities.
A factoring company (or accounts receivable factoring) converts invoices sold on credit terms for immediate working capital at a discount. It has become a simple, fast and easy way to access business cash flow. In comparison with a traditional bank loan, a company that factors receivables has a quicker approval process.
1st Commercial Credit is a factoring company that specializes in evaluating accounts receivable and can make a prompt approval decision. The documentation requirements are not as lengthy, and the main requirement is that an applicant has invoices for work or orders that have already been satisfied. It also helps to have creditworthy customers. As long as a business has been in operation, meets revenue requirements and is free of liens or legal issues, approval is likelier.
When companies decide to work with an Alabama Factoring Company, these businesses agree to give them ownership of their invoices. The factoring company then will exchange fast cash for the unpaid invoices. Doing this also means they will acquire the responsibility and right to collect payment from your business customers. The notice of assignment is a document that communicates to your customers that there has been a change in invoice ownership. They will now be making payments to the factoring company.
Each company has its version of this document, but they all generally serve the same purpose. The notice of assignment has the following main components:
A common question from businesses looking to partner with a factoring company is whether their customers will know about the involvement of a factoring company. A notice of assignment document helps make this a smooth and straightforward process.
You will receive a copy of the Notice of Assignment also sent to your customers. You must be very involved in this matter because it will help make the process easier and smoother.
Even with a Notice of Assignment, your company might still receive payments from customers, which the factoring company has the right to charge.
It is essential that businesses stay on top and involved during the time this process takes. Companies might still be responsible for additional penalties and fees if customers do not make payments on time or if you deposit payments sent to the wrong account.
Action needs to be taken immediately from your part if needed. Understanding the language used in the notice of assignment, being aware of your customer’s responsiveness to the notice, and interfering if customers are not sending payments are your responsibility until the transition process is completed.
Some businesses prefer not to have their customers know about the partnership with a factoring company for different reasons. 1st Commercial Credit respects business owners’ wishes and preferences, and that is why we also offer non-notification factoring for these companies that wish to remain confidential about factoring their receivables. For Alabama businesses to qualify for this type of financing, they need to be large companies and fulfill specific stability and budget requirements.
If your Alabama company will benefit more from this alternative, here are some of the extra benefits your company will experience: no notice of assignment, customized rates, cash advances made on the same day or within 24 hrs, checks can still be made payable to your company’s name, quick credit checks for prospective customers.