Business Lines of Credit – 1st Commercial Credit
Posted on August 14, 2014 in Factoring
Cash is the lifeblood of any business, which is why most business owners spend a great deal of time creating and cultivating relationships with financial institutions and lenders. There are few things more frustrating to a business owner than having a healthy flow of invoiced sales, but a restrained cash flow. It is an issue that too many business owners solve with borrowing that adds to their debt.
The term "line of credit" can be a touchy subject to some business professionals. On the one hand, a line of credit represents that safety blanket that the company needs to make payroll, pay vendor bills and meet other ongoing financial obligations. On the other hand, a bank line of credit can add to a company's debt and introduce new interest debt that was not there before.
The Problems With A Business Line Of Credit From A Bank
The biggest misconception about business lines of credit is that they must come from a bank and be based on the company's credit score. There are several problems with this approach. The first problem is the fragile nature of a bank line of credit. As soon as you submit a late payment or miss a payment, your credit score is shot and you may lose that line of credit.
The other issue with using bank credit to fill ongoing obligations is the unpredictable nature of long-term interest rates. When you finance a payroll payment using a line of credit, you will still be paying interest on that payroll payment for months, and possibly years. By the time you pay it off completely, you could have paid back just as much in interest as you did to make payroll.
Try A Factoring Business Line Of Credit
1st Commercial Credit specializes in lines of credit that do not have long-term debt issues and that do not have any effect on your credit score. To qualify for this line of credit, you do not need a good credit score, or any kind of credit score at all. This cash flow solution uses invoice factoring to get you the cash you need, when you need it.
1st Commercial Credit advances you cash against the face value of your outstanding invoices. Depending on the industry you work in, we can guarantee you an advance of as much as 95 percent of your invoices. As long as you have legitimate invoices with creditworthy clients, then we can help you get the line of credit that your company needs.
A Factoring Business Line Of Credit Grows With Your Company
The best way to keep your company out of debt is to only take on financial obligations that are in line with your company's financial status. If you suddenly take on a large bank line of credit that you use regularly, you will be running up debt that is beyond the growth rate of your organization. This can cause your profits to start going backwards and lose your company money.
A factoring line of credit for businesses from 1st Commercial Credit only grows as your invoiced sales grow. The lending that we offer is right in line with the growth rate of your organization, which means that sudden spikes in sales become financial benefits that gives your company an advantage. Instead of using increases in sales to pay back money you have borrowed, you can use that increase to plan the growth of your organization.
How To Set Up A Business Line Of Credit With 1st Commercial Credit
The process for utilizing your outstanding invoices as your company's line of credit is simple. The 1st Commercial Credit website has a two-page application that you can use to request up to $350,000 in advances. All you need to do is send along a list of your clients, the list of invoices you need factored, copies of those invoices, your articles of incorporation or your DBA filing, your rate confirmation agreements and your aging report. A representative will get back to you with an answer, usually on the same day.
From there, it takes anywhere from three to five days to set up your account. As soon as your account is set up, we start advancing you funds using your outstanding invoices as collateral. We can lend anywhere from $5,000 up to $10 million. We have no per invoice or per month minimum. We will work with any small to medium sized business on any kind of business line of credit issue.
1st Commercial Credit Takes The Mystery Out Of A Line of Credit
When you use the factoring line of credit from 1st Commercial Credit, you will not pay any set-up or facility fees. If you have used a bank line of credit in the past, then you are probably pretty wary of hidden fees that banks can add. 1st Commercial Credit does not add hidden fees to anything that we do. When we quote you a program rate, that is what you will pay.
We do not want to see any of your company financial statements either in the application process, or as any kind of ongoing audit of your business. We base our decisions on the legitimacy of your invoices and the creditworthy nature of your clients. We are not interested in your company financials, which is why this form of business line of credit is so beneficial to every business.
1st Commercial Credit will also never talk to your clients for any reason. Once we determine the legitimacy of the invoice and the creditworthiness of the client, then we are done evaluating the transaction. We leave the cultivation of your long-term relationships with your clients up to you.
A Factoring Line Of Credit Applies To Many Situations
Whether your company has a long history of doing business, or you have just opened your doors, we can help. As long as you have invoices to factor, then 1st Commercial Credit will be able to maintain your line of credit.
Sometimes a new business grows so fast that it outpaces its cash flow. Instead of being able to fill the orders that will bring more success to the company, the business owner is faced with the possibility of turning orders away. Since the company is so new, it cannot get financing from a bank. That is where 1st Commercial Credit steps in and turns those outstanding invoices into the credit line that the business needs to grow.
Whether you have bad credit, federal or state tax liens, or you have lost your bank line of credit because of some problems with your payment history; we can help. Our ability to extend you a factoring line of credit has nothing to do with your company's credit situation. You could be just coming out of bankruptcy and we would still be able to utilize your existing invoices to get you the money you need.
Secure Your Cash Flow Now With A Business Line Of Credit
1st Commercial Credit has extensive experience factoring invoices in industries such as oil and gas exploration, IT outsourcing support, staffing, trucking and product distribution. We encourage you to give us a call and let us show you how we can put our $2.5 billion in assets to work for your company right away.
With financial affiliates all over the world that can advance funds in 17 different currencies, 1st Commercial Credit is the recognized leader in offering lines of credit to small and medium sized businesses. We have the background necessary to take your outstanding invoices and turn them into cash flow.
Don't allow past due invoices to crimp your cash flow so badly that your company suffers. Your ongoing operational obligations such as payroll, vendor bills and overhead payments need to be attended to on a regular basis. If you have outstanding invoices that are with creditworthy clients, then you have the collateral that you need to get your cash flow going again and meet your obligations.
1st Commercial Credit associates are standing by 24-hours a day and seven days a week to discuss your situation with you and help you get the line of credit that you need. You can contact us by phone, or you can submit our two-page, online application package and we will get back to you immediately. Within only a few business days, you will have the real line of credit you need to pay your bills and keep your company going. It is the kind of credit that you never have to worry about, and the kind of credit that your company has earned from your ongoing sales efforts. Contact us today about our essential cash flow services.