1st Commercial Credit has approved and processed funding for a company that specializes in various layers of Cyber Security including Network Security, Data Security and Applications Security. Our client came to us due to the increased demand of their services and lack of working capital to continue payroll obligations.
All the Information Technology Security Companies have the same problem that can be easily fixed with an accounts receivable finance program in place. While some businesses are able to invoice weekly at net 30-day terms, some are waiting until the 1st day of the month to invoice for previous month’s work.
This scenario is very difficult for the average size Information Tech Company to deliver its services due the void of cash flow caused by the extended terms offered to the customers while keeping payables afloat.
Most companies pay their W-2 employees every week along with the 941 tax obligations while the customers may take between 30 to 60 days to pay. Other cyber security companies hire sub-contractors and the payables have to stay current in order for the subs to pay their employees and stay on the job.
1st Commercial Credit is a factoring company and also offers payroll funding that is sometimes needed to complete work before an invoice is generated.
Payroll funding for staffing agencies is a common and easily accessed type of funding for many factoring companies around the country.
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