$1.2 Million PACA Factoring Facility | Food Distributor
1st Commercial Credit has funded a food distributor that was introduced by their banker. The client is a supplier to a USDA prime contractor for essential food supplies.
The bank realized it was going to be more than what they could approve and due to the industry involving PACA related receivables, they decided to call 1st Commercial Credit to help the client.
The food sales involve a variety of dairy products, produce and poultry. The client needed a fast approval process and due to 1st Commercial Credit’s quick funding process, the client was able to obtain future contractual obligations that will triple sales through September of 2021. The factoring facility will increase as needed to a projected $4 million by middle of next year.
1st Commercial Credit has been factoring receivables more into the food supply chain industry and here is a perfect example of a PACA receivables transaction that was a better fit with invoice and supply chain financing rather than traditional bank financing.