Austin, TX, 08/30/2023 – In the face of growing hesitation from many financial institutions towards home-based businesses, 1st Commercial Credit is reaffirming its enduring commitment to this sector by continuing to offer specialized invoice factoring facilities. Since its founding over 20 years ago, the company has consistently welcomed entrepreneurs from various industries and of all sales volumes. Importantly, over 60% of its client base, including some of its largest customers, operate from home-based business venues.
This announcement is particularly timely, given that recent data trends and current economic conditions indicate a dwindling level of support from traditional banks and alternative commercial finance companies. Against this backdrop, 1st Commercial Credit stresses its ongoing commitment to home-based businesses—a dedication that has been unwavering since the company's inception.
Invoice factoring isn't a form of debt; rather, it serves as an ongoing mechanism for companies that issue invoices on credit terms to turn their accounts receivable into instant cash flow. This financial tool is especially vital for small and home-based businesses that might find it challenging to tap into traditional forms of receivable-based financing.
It should be noted that many home-based businesses are often lumped together in broad categories, regardless of whether they offer professional amenities like virtual offices, conference rooms, dedicated mail rooms or third-party fulfilment centers.
It's almost comical yet perplexing to see many financial institutions and competitors’ distance themselves from home-based businesses, particularly when a large segment of their own workforce is now remote, effectively making them home-based operations as well.
"As we see others in the financial arena retreat from supporting home-based businesses, we remain committed to acknowledging their vital contributions to the larger economic landscape. Invoice factoring serves as an essential financial lifeline for these enterprises, supplying them with the necessary working capital to flourish," states Raul Esqueda, President at 1st Commercial Credit. He further elaborates, "The nature of a business (Corporation), whether it operates out of a briefcase, a home office, or a skyscraper, does not diminish the value of its accounts receivable. An invoice for completed services, recognized, and accepted by the buyer, holds intrinsic value. This remains true irrespective of the business's size, location, industry standing, owner's creditworthiness, or any other underwriting criteria commonly employed by traditional financial institutions. We are willing to factor an invoice for a business that has been operational even for just a day, as long as it meets our guidelines."
With experience spanning more than two decades in the invoice factoring industry, 1st Commercial Credit offers tailored financial solutions aimed at fulfilling the unique needs of a diverse range of businesses. The company continues to uphold its commitment to innovation, inclusivity, and customer-centered solutions, consistently setting new benchmarks for industry excellence.