The process of obtaining a loan against accounts receivable in Bridgeport differs from getting a loan from a bank. Your invoices are sold to a specialized lending company at a discount in exchange for a cash advance. These invoices become the property of the lender, who becomes responsible for collecting directly from your customers. Dealing with the bank is often tricky, and they have a long and strict list of requirements to apply for loans. They usually ask for perfect credit history and substantial business collateral.
Banks will do an extensive evaluation of your financial and credit history, which they will use to determine terms, loan rates, and approval. In contrast, our funding decision-making is not dependent on your company's credit, as we focus more on the creditworthiness of your clients and their ability to pay the invoices. If your Bridgeport business needs additional capital, you can work with a traditional bank or with an alternative financer. With the increasing difficulty to obtain bank loans, factoring for Connecticut businesses continues gaining popularity as a viable and optimal financing alternative. Receivable financing provides business owners with a reliable source of working capital for many small and medium-sized businesses. Here are a few reasons why business owners in Bridgeport prefer invoice financing to bank loans:
Fast and Reliable — Banks have stringent requirements and require insane amounts of paperwork, often making the loan approval process complex and time-consuming. In addition, the process for bank loans takes quite a long time, and after all this time, the loan may not even be approved. With invoice factoring, the funds are in your hands immediately and provide the following benefits:
Improved Cash Flow: Invoice factoring provides a predictable source of cash for business owners in Bridgeport. This financial solution helps create greater liquidity, allows businesses to cover their expenses, and uses additional capital to take advantage of more business opportunities.
No debt acquired: One of the many good reasons invoice financing is better than bank loans is that no debt is created. Since you're only taking advantage of the collection of future invoices, you won't have the burden of needing to repay loans.
No Limitations: Bank loans will typically give you a cap or maximum amount that you can borrow. When you reach that established limit, you'll have to re-apply to get additional funds. In contrast, the amount of funds you can access through invoice financing is directly related to your sales volume. As your sales (invoices) increase, the more funds you can access.
More Cost-Effective: Invoice factoring includes several services that can reduce your administrative costs. Factoring fees often include services such as investigating the credit health of your customers, determining credit limits for them, and collecting receivables. All of these operating efficiencies will save you money over time. There's also no commitment to long-term contracts with factoring financing, giving businesses the flexibility to finance on an as-needed basis. So with this in mind, when you consider terms, loan rates, and conditions, traditional bank loans can potentially end up costing a lot more in the long run.
Less Risk: Banks often require businesses to use more than just the business' assets as collateral. These assets can include personal assets, property, equipment, etc. With invoice financing, you don't have to risk your assets to finance your business.
1st Commercial Credit is helping U.S.-based companies maintain growth by providing flexible Import and export international trade finance. The global economy is becoming more competitive each day, and this is why U.S. companies need to have the ability to offer better financing terms to international customers. Our international receivable finance program allows exporters and manufacturers to enhance their sales and successfully compete in the global marketplace.
1st Commercial Credit is an international financing company that will provide exporting companies, manufacturers, distributors, and service providers with the funds to fulfill their foreign trade finance needs. Our trade financing enables exporters and importers to get immediate access to finance to get products manufactured and shipped Internationally. If you’re an exporter or importer involved in global trade, getting access to an international trade finance program is a crucial part of growing and succeeding. Import/export finance is often needed as importers usually place new orders for high-value bulk shipments that require a high upfront cost to manufacture.
There is considerable risk to keep in mind when producing a high volume of products. 1st Commercial Credit knows how crucial cash flow and working capital management is for exporters, importers, and trading companies. The main advantage of having a suitable import-export finance solution is that it provides the seller or buyer with upfront cash to cover the costs for the goods to be manufactured and shipped.
When sellers turn to 1st Commercial Credit’s Export Trade finance, they don’t have to dilute equity for their business to grow. This financial alternative allows exporters and importers to retain positive working capital and focus on optimizing operations, growth, and expansion into new markets. Receiving finance upfront minimizes the risks of financial distress, and it enhances the speed of acquiring new deals while reducing the time between manufacturing and preparing goods for export. In addition to receivable finance, we can also facilitate purchase order finance, trade finance, letters of credit, and credit insurance. Call us today to learn more and obtain an international factoring proposal with no obligation.
Though some sectors might experience a steady flow of business, others have a cyclical flow of business in highs and lows, and the manufacturing industry is one of them. This sector deals with global entities and has numerous parts working together to produce merchandise and deliver it on time. This and the fact that manufacturing is capital-intensive can cause many financial issues related to cash flow, mainly covering the gap between paying for production and collecting on goods sold.
In the manufacturing world, it is necessary to offer long-term payment plans to customers to remain competitive, encourage clients to place larger orders, and establish a strong, trusting, and long-lasting relationship with clients. Manufacturers have many upfront expenses, including purchasing raw materials, paying subcontractors and suppliers, purchasing equipment, leases, and payroll. The margins in the manufacturing sector can be tight. Because of this, manufacturing businesses with low cash flow may not afford to offer payment terms to customers.
Government contractors in a similar situation can benefit from working with 1st Commercial Credit as we offer several financing options available. One effective solution is factoring government receivables that allows you to get fast cash upfront to pay your employees and vendors. One of the many advantages of using your government receivables as collateral for a receivable loan is that the application, approval, and funding process take only a few days. Another advantage is that the lender usually will not focus on your credit history. Instead, they are more interested in whether your customer will pay on time. That means that factoring can still be a viable option for you if your business has low credit or bad credit.
1st Commercial Credit has extensive experience making cash advances on contracts with local, state, and federal government agencies. We understand the payable procedures and how to work with government clients to collect payment.
Bridgeport is also known as Park City because it is home to 27 parks. Some of these famous parks include Seaside Park, Beardsley Park, and Beardsley Zoo. With over 54 Registered Historic Places, Bridgeport is rich in history, and its architecture is exciting and diverse. The small distances make this an accessible and walkable city. Bridgeport has many events and attractions for residents and tourists to enjoy. Some of the cultural institutions in Bridgeport include the Greater Bridgeport Symphony, the Downtown Cabaret Theatre, the Playhouse on the Green, and Discovery Museum and Planetarium. Museums include the Housatonic Museum of Art, which houses works by Picasso, Rodin, and Warhol. Bridgeport is also home to the University of Bridgeport and Housatonic Community College.
Trade and manufacturing have been the core of Bridgeport's economy for a long time. However, service-producing sectors, including business and health services, have become significant contributors to the local economy. Bridgeport is also trying to expand its manufacturing sector into the international marketplace. Bridgeport produces many goods, including transportation equipment, machinery and machine tools, fabricated metals, and electrical supplies. In addition, employment opportunities are growing by the county's numerous Fortune 500 companies.
Bridgeport's largest sectors for employment include: