Accounts receivable financing is used by businesses to convert sales on credit terms for immediate cash flow. 1st Commercial Credit adopts a quick and simple approval process and expedites initial funding in 3 to 5 working days.
1st Commercial Credit provides a variety of purchase order financing solutions to meet your trade financing needs. P.O. financing is suitable for any wholesaler, reseller, importer or any company that purchases and resells goods.
If your Connecticut business is struggling and you are looking for financial solutions, you have probably heard about merchant cash advances as well as invoice factoring. Although both of these options are alternatives to traditional bank loans and are easier to qualify for, it is crucial to understand the process and the fundamental differences between them.
A merchant cash advance loan is a type of financing that provides Connecticut businesses with cash in exchange for payments based on estimated sales in the future. In this case, the money is repaid in monthly installments as with any loan. The main difference between this and other types of loans is that with MCA's, there are no fixed amounts; instead, a percentage of your sale is obtained. Your monthly payments will be contingent on your sales that month.
In summary, some of the pros of MCA include getting fast cash for your business, eligibility is based on monthly sales, and low credit is accepted. Some of the cons include high interest rates due to not having a fixed monthly payment, and if your business sales fall below the average, more interest may have to be paid.
Invoice factoring is also a better alternative to bank loans and provides fast cash when businesses need it the most. This financial alternative differs from MCA because you will receive a payment upfront based on actual sales (already invoiced) rather than an amount on estimated future sales.
With invoice factoring, there is no loan to repay, credit score is not considered, and only a small percentage over the invoices is charged. Accounts receivable factoring, another name for this type of financing, also provides extra advantages such as billing and collections.
1st Commercial Credit is an experienced factoring company with more than 18 years offering supply chain finance solutions. We offer highly competitive financing rates at 0.69% to 1.59%. The approval process is simple, and no financials or setup fees are required. We can provide fast funding within 24 hours after approval, and we also offer customized rates for your business.
1st Commercial Credit understands the challenges that come from running a business. We are prepared to advance funds to your business based on the value of your invoices. You will meet your financial and operational responsibilities and start thinking of ways to grow and improve your business.
We can also evaluate your accounts receivables and explain with no obligation how accounts receivable financing can significantly improve your company's finances. With AR financing, there is nothing to pay back because it is not a loan. Our financial program is designed as an ongoing receivable asset purchase and it is much more flexible than many traditional lending arrangements.
The application process for any of our financing programs is straightforward and fast with us. We have the complete application process online, and you can submit your application package and get funded in 3 to 5 working days. Borrowing against receivables is an ideal solution for businesses constantly struggling with cash flow issues, resulting in not paying bills or other financial responsibilities on time.
Businesses have constant capital expenditures, including machinery, computers, and other equipment, critical to maintaining business operations and ensuring growth. For small businesses, in particular, purchasing new equipment can bring significant benefits and financial challenges. In addition, companies need to keep up with the frequent changes in technology, engineering, and manufacturing trends, as working with equipment that's a few years old can put companies at risk of losing their competitive edge. Investing in new equipment and current technologies enables business owners to be more flexible and responsive as business needs change. It also helps better position these businesses to meet customers' changing preferences and requirements. On top of this, new equipment also enables some small companies to reach new customers and markets and offer new and better products and services.
Obtaining financing for business equipment might seem a bit scary and difficult, especially if you're trying to get a loan from a bank or credit union. These financing institutions often worry about depreciation on equipment, resulting in many traditional lenders refusing to give large sums of money for businesses to purchase equipment. However, alternative lenders like 1st Commercial Credit can provide customized financing solutions and equipment finance solutions for your equipment needs.
We can help you design an equipment lease or loan plan starting at $10,000 and up to $15,000,000. We have a short and straightforward application process, and our equipment financing is available for new or pre-owned equipment.
Financing your heavy equipment is ideal to obtain expensive machinery and tools at a more affordable cost for your business. To begin the financing process, owners need to research to find an experienced lender with various financing offerings. An alternative lender will be more flexible and offer higher approval rates and customized financing options tailored to your business needs.
There are many benefits when using equipment financing or leasing to get new and updated equipment for your business. Besides protecting your precious business cash reserves by making periodic payments instead of buying the equipment upfront, many business owners can save money on the equipment's cost and taxes with the Section 179 deduction. If your equipment qualifies for this deduction, you could save money on your taxes by subtracting up to 100% of your equipment cost. Depending on the type of equipment, combining financing with the Section 179 deduction could greatly benefit your company.
A factoring company (or accounts receivable factoring) converts invoices sold on credit terms to immediate working capital at a discount. It has become a simple, fast and easy way to access business cash flow. In comparison with a traditional bank loan, a company that factors receivables has a quicker approval process.
1st Commercial Credit is a factoring company that specializes in evaluating accounts receivable and can make a prompt approval decision. The documentation requirements are not as lengthy, and the main requirement is that an applicant has invoices for work or orders that have already been satisfied. It also helps to have creditworthy customers. As long as a business has been in operation, meets revenue requirements, and is free of liens or legal issues, approval is likelier.
The state is also home to some major financial companies, including Royal Bank-of-Scotland, GE Capital, Mass Mutual, Cigna, Travelers, People's United-Financial, and The Hartford. Both of these sectors bring more than $16 billion in payroll annually, making them the highest paying industries in Connecticut. Some of the world's largest management firms are headquartered in Connecticut, ranking second in the country for assets under management. Greenwich, Connecticut, is one of the world's top hedge fund hubs after New York and London. Nearly 110,000 people in Connecticut are employed in the financial services/insurance sectors.
Another prominent industry in Connecticut is Real Estate. This sector has grown remarkably in the last few decades. Some of the leading Connecticut real estate companies include William-Ravels Real Estate and Realogy.