Boulder businesses sometimes have to wait for weeks or even months for customer payments. During this time, they might be cash deficient and may not have the funds available to pay for current operational expenses or grow their businesses. Accounts receivable factoring is a financial solution for Boulder businesses in this situation.
It is necessary to understand the crucial differences between invoice factoring and a traditional bank loan when looking into financing programs for your company in Boulder. The process of selling receivables to invoice factoring companies is not a loan; instead, these invoices are sold at a discount in exchange for fast cash. The unpaid invoices will become the property of the factoring company who will collect directly from the customers. This collection can take anywhere from 30 to 90 days.
One of the most noted benefits of invoice factoring is the ability of a company to raise cash quickly and safely. Factoring also offers plenty of other benefits, some of which you may not even know about. Factoring can minimize risk against client bankruptcy. It doesn’t add debt to your company and can help with collections, and these are just a few extra benefits.
Invoice factoring will provide a steady source of cash flow without added debt. We know all companies are unique and have particular needs. 1st Commercial Credit will evaluate your company's receivables without commitment to figure out how we can help you and advise you appropriately. 1st Commercial Credit offers three principal financial instruments that all industries in Boulder need, including invoice factoring, purchase order financing, and trade payable credit.
Boulder companies in need of cash flow can use accounts receivable financing as their financial solution. Factoring receivables will allow companies to maintain a consistent and healthy cash flow and improve their financials while meeting payment deadlines to suppliers, covering payroll, purchasing equipment, and other financial responsibilities.
In summary, there are 5 main reasons why invoice factoring is the optimal financial solution for Boulder businesses.
Bank loans are often difficult to obtain, and for many businesses in Boulder, this is not even an option. Banks loans will provide cash but also debt. When comparing bank lines of credit and invoice factoring, it is clear which one will benefit your business and provide fast cash flow solutions. 1st Commercial Credit is an experienced factoring company in Colorado with more than 18 years in the business that has helped many companies in all industries. 1st Commercial Credit finances some of the most popular sectors in Boulder, including trucking and freight, staffing agencies, manufacturing, and construction, to mention a few.
Businesses in Boulder can turn to a bank for traditional financing, but their requirements and process are usually complex and time-consuming. Banks require an impeccable credit score and also ask for collateral as a backup. If the business ends up qualifying for all this, the final approval and access to cash can take several weeks to months. Factoring allows companies to receive the needed capital without relying on an expensive loan with a high interest rate and incurring debt.
Obtaining a business loan has always been challenging but even more so today because banks have made the requirements and application process very extensive and complicated. If a company has not been in business very long or has had problems repaying loans in the past, the likelihood of being approved for a bank loan is small. A good and safe alternative to this would be for a company to utilize factoring services.
Small businesses that have not been in business for very long have low average credit and few company assets. These businesses will face difficulty trying to get money loaned to them from either the bank or private investors. In some instances, even if you have a decent credit score and financial records to support your business, you may still not be able to get a small business loan.
One option available to them is selling their invoices. In contrast to bank loans, invoice factoring makes the whole application and approval process fast and straightforward. It mainly requires that a company has good paying customers and have outstanding invoices.
Boulder's technology and information economy industry have grown up considerably together. Boulder has one of the nation's largest concentrations of IT employment (2.7 times higher than the US average) mainly because of its highly-educated workforce and strong entrepreneurism.
Entrepreneurship and innovation fuel the Boulder high-tech ecosystem and includes everything from start-ups to Fortune 500 companies. Many Boulder high-tech and start-up companies have been acquired by large, national companies like Google and Microsoft.
The IT industry in Boulder has particular concentrations in the data storage, software and integrated systems, and mobile application development sectors. The corporate presence of large companies helps feed the hot entrepreneurial and innovation scene in Boulder. There are currently 862 IT firms in Boulder with more than 10,000 employees who make an average of $116,600 in average wages.
1st Commercial Credit understands the challenges that come from running a business with cash flow issues. We are prepared to advance the cash your Boulder IT company needs based on the value of your invoices. Your business will meet the regular obligations and start thinking of ways to grow your Boulder Software/IT company.
Athletic events such as Ironman, Bolder Boulder, and a stage in the US ProCycling Challenge are also a big part of Boulder's active culture.
Boulder is also famous for its musical and cultural events, and festivals including Colorado Chautauqua, the Boulder Dinner Theater, CU Boulder, the Dairy Center for Performing Arts, Shakespeare Festival, OpenArts Fest, and Colorado Music Festival, to mention a few.
Among the typical outdoor activities to do in Boulder, one can find hiking, trail running, cycling, photography, bird watching, and climbing.
Boulder is famous for being one of the best places to establish or grow a business. The city offers a culture of innovation and entrepreneurial support, which helps businesses thrive here. Boulder is home to growing companies in a diverse mix of industries. Boulder also offers numerous resources for all businesses.
Boulder is recognized for its quality of life and business environment. Recent rankings include:
Boulder offers diverse industry clusters ranging from aerospace to the outdoors. These industries contribute to local, national, and global economies.
The highest concentration of employment is found in several key sectors, including:
1st Commercial Credit is a factoring company in Colorado providing invoice factoring services to the following cities: