1st Commercial Credit

We Offer Supply Chain Finance Solutions

Over 18 Years in Business

Recent Transactions

invoice factoring for a accounts receivable line of credit for a walmart dry foods vendor

$1 Million

Dry Foods Vendor

invoice factoring for a small fleet trucking

$100,000

Small Fleet Trucking Company

Can Invoice Factoring help Distributors Overcome Working Capital Shortage?

Can Invoice Factoring help Distributors Overcome Working Capital Shortage?

International distributors of merchandise are able to overcome their working capital shortages with the aid of invoice factoring and accounts receivable funding services. Especially when they are exporting goods to global markets, numerous delays in product delivery schedules can occur. In addition, payments on accounts of international buyers may take unexpectedly lengthy periods of time to clear when foreign currencies and banking regulations are involved. With the assistance of a highly qualified international factor providing customized asset-based financing, even the most serious cash flow problems can be alleviated and eventually eliminated completely.

How can invoice factoring help global distributors overcome working capital shortages?

Invoice factoring can be the perfect solution for small and mid-sized global distributing companies when they experience cash flow shortages. With this type of funding from a reputable factor, international product distributors can obtain necessary working capital within a few days. In contrast, applying and receiving approval for a comparable bank loan could take weeks.

Working capital received through invoice factoring can serve many vital purposes in a sales distribution business. For example, this cash funding may be used to finance regular payroll or for paying business taxes. It is often crucial for meeting certain major operational costs. This reliable cash funding may also be of great help in acquiring new office or factory equipment and for paying vendors and affiliates. It may be essential funding for embarking on marketing campaigns or enhancing client credit terms. Invoice factoring can also help sales distributors sustain business during seasonal slowdowns in production and sales of the merchandise they distribute and in times of rapid business activity and expansion.

Because approval for invoice factoring is dependent on your business account debtors' (customers') creditworthiness, there is no need to be overly concerned about the financial and credit records of your own company. The debt-to-income percentage rate of your business will not be used in determining your company's eligibility for funding. In the invoice factoring process, your company's outstanding invoices are collateralized and your factor then issues immediate working capital without need for long processing delays.

Receivable Financing Rates at 0.69% to 1.59%

18 Years In business & Over 3,200 Clients Funded

  • Fast Approval Process
  • No Up Front Fees to Set up
  • No Financials Required
  • Low Credit Score Accepted
  • 3 to 5 Day Initial Setup
  • Free Invoicing Software

What is the main role of purchase order financing in factoring for worldwide distributors?

When international product distributors receive purchase order financing from factoring agents, the factor supplies ongoing cash advances for product orders on which deliveries have not as yet been completed. This working capital is then available for use in purchasing company supplies and equipment, for advertising and marketing campaigns, for company investments and other purposes.

There are numerous valid reasons for submitting a company application to a factor for consideration for purchase order factoring. Perhaps your business sales distribution rates are increasing so rapidly that you need additional cash flow to facilitate the filling of all your product orders. Maybe your cash flow supply is seriously challenged during busy product delivery schedule periods and your working capital on hand is already allocated to other specified necessary spending.

The actual process of purchase order factoring is really quite simple. When your company gives certain customer purchase orders to the factoring agent, the factor will approve and issue funding covering amounts up to and including 100 percent of the value of these product sales and distribution transactions. Through this easy financing method, your business purchase orders are converted into cash receivables.

With the valuable aid of both invoice factoring and purchase order financing, international product distributors are able to maintain continuous business operations free from delays caused by cash flow shortages. Additionally, with the help of these accounts receivable loans , they are able to sustain and expand business levels while improving the quality of their enterprises. In these valuable factoring agreements, the factor assumes liability for the global distributor's customer invoice and purchase order payments while advancing funds to the distributor. The distributor is then able to concentrate on business operations, focusing attention on healthy business growth and profits.

We Attract Clients That Experience:

  • Growing faster than their cash flow
  • Require Funding in 3 to 5 days
  • Uneven seasonal sales volume
  • Lose their line of credit at the bank
  • Slow cash flow due to a slow payments
  • Need export receivable financing
  • Need import payable financing
  • Require purchase order financing
  • Factoring Rates at 0.69% to 1.59%