1st Commercial Credit Launches $20 Million Sales Ledger Lines of Credit Program, Partners with Banks to Expand Working Capital Access

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Solving Mid-Market Financing Challenges with Sales Ledger Lines of Credit: A New Alternative to Traditional ABL

With Sales Ledger Lines of Credit, businesses generating at least $3 million in monthly invoices can access up to 90% of receivable value as working capital. The structure avoids traditional debt by documenting the facility as a continuing receivable purchase, providing fast and flexible funding without complex loan covenants.

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"Sales Ledger Lines of Credit are designed for companies that are too big for traditional factoring but not well-served by bank lending or rigid ABL structures," said Raul Esqueda, President of 1st Commercial Credit. "By working in partnership with banks and advisors, we're helping companies replace high-cost debt and unlock working capital without disrupting their existing financial relationships."

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Key Benefits of the Sales Ledger Lines of Credit Program:

• Credit lines from $3 million to $20 million
• Up to 90% advance on eligible receivables
• Funding in as little as 3 weeks
• No traditional debt added to the balance sheet
• Banks may subordinate receivables while maintaining existing term loans
• Optional credit insurance to reduce risk
• Available to industries such as manufacturing, staffing, transportation, security, and importers

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The company reports growing demand from investment bankers, restructuring advisors, and bank workout departments who are turning to 1st Commercial Credit to support clients with cash flow constraints, MCA obligations, or seasonal volatility. Sales Ledger Lines of Credit enables a seamless transition from high-cost loans and unscalable ABL products to receivables-based funding that grows with the business.

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To qualify, companies must maintain up-to-date financials, demonstrate profitability, and have a Chief Financial Officer overseeing internal operations. A Deposit Account Control Agreement (DACA) is also required to control receivable proceeds.

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Solving the $3M–$10M ABL Gap

With many traditional asset-based lenders pulling back due to rising defaults and low margins, businesses in the $3M–$10M range are often left with few viable financing options. According to Esqueda, the complexity and cost of underwriting ABL deals at this size often exceed the returns.

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"Sales Ledger Lines of Credit provide a scalable alternative to ABL," said Esqueda. "We remove the bottlenecks of traditional credit underwriting and give clients a funding solution that adjusts with their receivable base—not their collateral mix."

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Backed by Technology and Trade Credit Protection

Sales Ledger Lines of Credit builds on 1st Commercial Credit's $6 billion funding milestone achieved in 2024, and its $200 million in receivables insurance coverage. The program is powered by the company's proprietary MyBizPad® platform, which automates funding requests, and real-time receivables tracking—ensuring operational efficiency and transparency for clients.

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About 1st Commercial Credit

Founded in Austin, Texas, 1st Commercial Credit, LLC is a privately-owned factoring company, a leader in receivable-based financing, purchase order financing and trade payable finance. Serving businesses across the U.S. and select international markets, the firm specializes in non-debt capital solutions for manufacturing, staffing, transportation, and importing companies—empowering businesses to scale without traditional borrowing.