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.
Also known as invoice factoring, this financial solution provides your Alaska business with an opportunity to avoid banks and their loans and incurring debt. This financial solution will allow you to retain your company and control the finances. The way it works is simple; your company has unpaid invoices, which will be paid in either 30 to 90 days, and your business is experiencing a shortage of cash flow because of these sales on credit terms.
The factoring company will "buy" these unpaid invoices from you at a discount and facilitate the cash within a few days. Once your Alaska business establishes an account with the factoring company already, future funding can happen on the same day or within 24 hours.
Receivable financing is structured like an ongoing seller/purchase agreement, and it is not a loan. Understanding the invoice factoring process will help you make a more informed decision when comparing options for financial solutions for your Alaska (AK) company. The receivable credit line is always determined by the customer's financial strength (Buyer), not the client (The seller of the receivables). Growing and successful businesses can also benefit from accounts receivable factoring. Often, an immediate injection of cash is needed to expand the business and take on more and bigger clients while still being able to offer better credit terms.
1st Commercial Credit is an accounts receivable finance company specializing in many industries in Alaska, and the financial tools we offer help businesses grow. Financing accounts receivable is now the preferred financial tool in obtaining flexible working capital for businesses of all sizes in Alaska.
Other benefits your Alaska (AK) business will experience when choosing a factoring company like 1st Commercial Credit include:
A factoring company 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 an accounts receivable 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.
Financing accounts receivables is our business, and 1st Commercial Credit has more than 18 years providing financing solutions to businesses. Our goal is to make our financing programs easy and achievable for all companies.
An experienced factoring company like 1st Commercial Credit is far more valuable because we are familiar with working with accounts receivable assets for the Alaska oil and gas sector. The value of your accounts receivables will always be more significant to us than to the banks.
Banks focus more on the cash flow side of the business and fixed assets to approve a business loan. A factoring company concentrates on the company's invoices and reviews the credit quality of the buyers to make a more accurate assessment of the value.
A bank can also end up costing more in other areas of the business by restricting eligibility on accounts receivables when your company has a limited number of customers.
Even if your business has a bank line of credit for free, your business will face limited growth because turning away business due to limited eligibility can be very costly.
Alaska runs on oil, which means oil and gas comprise the state's primary industry. The oil production in Alaska has been responsible for the economic growth in the state.
The discovery of new fields offers yet more potential to increase production, meaning many businesses working with the oil and gas industry directly or indirectly will face success and growth.
At 1st Commercial Credit, we can provide your business with working capital by using your accounts receivable as collateral. This type of financial service is available to oil and gas exploration service providers and field equipment suppliers such as seismic survey or geophysical operators, manufacturers of drilling fluids, drill rigs, lifts, geophysical prospecting equipment, pipes, pumps, production tools, valves, wellheads and many more.
One-quarter of the jobs in Alaska comes from the oil industry, and about a half of the state's economy also comes from the oil and gas industry. Without the oil and gas industry, Alaska's economy would be half-sized. Alaska residents make up 84% of the total employment and $4.8 billion in wages.
The state's average wage earnings in this industry are about 2.5 times higher than the rest of the state wages for all other sectors. For each job in Alaska's oil and gas industry, there are 15 additional jobs in the Alaska economy connected to the industry. No other industry in Alaska comes close to the multiplier effect of the oil and gas industry. Cleary, when the industry prospers, so does Alaska's economy.
At 1st Commercial Credit, we can provide your business with the financial tools needed to continue succeeding in the oil and gas industry. We make working capital available to your business when using our accounts receivable financing program. This type of financial service is available to oil and gas exploration service providers and field equipment suppliers.
1st Commercial Credit offers accounts receivable factoring to small and medium-sized businesses in Alaska.
Oil and gas companies can offer credit terms to customers utilizing our funding program. Oilfield companies will now be able to tap into their receivables assets for immediate cash flow quickly. You can offer credit terms to larger customers, take advantage of early-pay discounts offered by your suppliers, and countless other opportunities.