July 1st 2021 - Austin, TX – 1st Commercial Credit has reached a new funding milestone of over 233 small ticket purchase order financing transactions averaging $30,000.
Many clients utilize this type of funding for production finance, raw material, import tariffs, freight fees, in-transit containerized goods, and payroll. The program does not offer sending deposits to suppliers, the container must be on the vessel before considering funding the inventory in-transit with preliminary inspection requirements.
Raul Esqueda, President of 1st Commercial Credit, says “I am very happy to see our new transactional funding program succeed and accommodate our existing factoring clients. We designed these financial instruments to be flexible and can be adjusted as needed in order to fit the best need for our customers. Many of our clients are in growth mode, and sometimes invoice factoring is not enough to keep the supply chain flowing. We created a hybrid program between inventory and purchase order finance, whereas traditional PO financing does not work. Some of our clients are ordering products prior to receiving a purchase order based on inventory turns. In this scenario, traditional p.o financing does not qualify because there is no purchase order to pledge.”
Trade payable and inventory financing is another program usually available for very large companies that are financially strong and are credit insurable. 1st Commercial Credit offers existing factoring clients the ability to pay suppliers early or finance the payable and deduct from factoring proceeds once it is sold. Clients must have at least $100,000 a month in sales consistently for 6 months to be considered for this type of funding (no startups).
Payroll Funding or Work in Process Funding is another financial service for staffing companies and other service-related companies. Most of the time, they are not able to invoice weekly to factor. Some contracts require clients to invoice once a month, creating a huge cash flow gap for payroll or production finance between monthly invoice factoring.
Purchase Order Financing is not available as a stand-alone financial service, clients are required to factor all accounts before considering p.o finance or trade payable financing. Learn more about Applying for Purchase Order Financing.