The customer we financed has large projects that requires a lot of work before the company is able to invoice. The invoice has to be submitted, approved and then takes another 45 days for payment. As you can imagine the tied up cash during this process was putting a stressful situation on our client.
Our client provides pipeline repair and rehabilitation services that require a lot of labor, material purchases that include abrasives, expensive epoxy and polyurethane coatings. The company was buying on credit terms from local suppliers. However, do to the slow payments coming from customers, the suppliers had to place our client on “Cash on Delivery” terms.
The client contacted 1st Commercial Credit and we were able to move quickly and in 5 working days had the client funded with an accounts receivable financing program that gave the company up to 90% eligibility of the accounts receivable value.
The main industrial coatings supplier that provided a unique two part epoxy for internal pipe use, was vital and needed to get paid.
1st Commercial Credit is factoring company that provides no only invoice financing but also purchase order finance for performing accounts.