Business owners in the agriculture industry in the United States work hard to create, import and distribute the perishable vegetables and fruits to keep food on American families’ tables. Companies in this sector deserve to have the confidence and comfort of growing a business while having available cash in hand consistently. Since most banks are hesitant to finance the perishables business with lien rights, 1st Commercial Credit offers agriculture and farm factoring compliant with PACA.
The Perishable Agricultural Commodities Act provides federal statutory lien protection to vendors of fresh foods. 1st Commercial Credit understands that it can be challenging to find a reliable funding source that fulfills the unique situation of perishable goods. Our team of experts has extensive experience dealing with Agriculture Receivable Factoring. Our team will work closely with your agribusiness to navigate PACA rules and provide the agriculture industry with successful funding packages.
PACA are rules and regulations meant to help and protect produce sellers and cover legal disputes. Agriculture and produce receivable factoring is an alternative and flexible financing solution for businesses struggling with cash flow.
Agriculture receivable factoring allows business owners to receive funding on their open accounts receivables fast by selling unpaid invoices, giving them the vital working capital that’s needed immediately to run your business.
Traditional banks often will not approve loans, and if they do, their loan approval process takes excessive time. 1st Commercial Credit provides financing for Delaware businesses just like yours everyday and our application process is simple.
Imagine if you have shipped fresh produce across the country and now must wait for multiple vendors to pay you back within 30-900 or more days. Waiting to get paid creates a huge cash-flow gap, making it challenging to cover payroll and pay bills or other business expenses. However, the businesses who turn to agricultural factoring receive fast, affordable funding releasing you from the uncertainty and worry of getting paid. With receivable financing, you will have access to consistent cash flow to continue running a successful operation.
To qualify for Agricultural factoring, you need to follow PACA rules and have a USDA license. Funding amounts differ and depend on several factors, including the type of industry and the quality of the invoices. We can cover most agricultural financing needs. We need a 2-page short application completed with copies of your A/P and A/R aging. If you are compliant with PACA and meet the criteria, you can use our fast and secure financing services, and we will work with you to improve your cash flow to give a better service to clients.
Business owners in the agriculture industry can reduce costs by leasing agriculture equipment instead of buying it outright. Equipment financing and leasing are two great alternatives to traditional bank financing. We know that many agribusinesses struggle between purchasing new and updated expensive equipment or continuing operating with the same old equipment, affecting the business’s efficiency and growth.
Finding the right equipment for your business may require additional cash that is not always available. Our equipment financing programs will help get you the equipment you need without complicated processes. Farming is one sector that especially benefits from setting up monthly payments to match their monthly equipment payments with incoming cash flow.
Cash flow is often tight in the construction sector. Payments come slowly, making it hard to sustain a business and preventing it from growing. To combat this problem, a financing tool called construction factoring is available. Invoice factoring for construction companies allows a company to borrow against its receivables.
Factoring is a process in which businesses get cash advances for their unpaid invoices. When factoring an invoice, a construction company assigns its invoice to a third-party lender, and in exchange, the factoring company provides cash right away.
The construction factoring process looks like this: First, a construction company agrees to factor in its invoices. Typically, a factoring company will commit to paying anywhere from 70-96% of the value of the invoice while awaiting payment. Then, the invoice becomes the factoring company’s burden to collect. Once that factoring company is paid for the invoice, the factoring company will pay the subcontractor the remaining percentage minus the factoring fee.
Construction payments often come slowly. When construction companies factor receivables, they can obtain payment for most of their invoice a lot sooner than they would otherwise. Plus, as long as a subcontractor’s factoring company gets paid in full, the subcontractor will only lose a relatively small percentage of the invoice in this type of financing.
Some of the things construction companies will be able to do with factoring include:
If your business needs new or used construction equipment but lacks the financial resources required to buy the equipment upfront, working with 1st Commercial Credit might be the best alternative. We are an experienced and reliable business lender that offers construction equipment financing to help construction businesses get the equipment they desperately need. Our construction equipment financing plans do not require a large down payment and the monthly payments are affordable and predictable, specifically designed to fit your budget.
Any construction business owner knows how crucial it is to have access to the right equipment as it helps you complete projects on time, manage different types of projects, and keep customers happy and coming back. In addition, the right construction equipment will ensure you achieve maximum efficiency and quality and optimum use of labor.
Invoice factoring for manufacturers will use your existing receivables and convert them into fast cash to grow and cover your operating expenses. When payments take several weeks or months to arrive, even the most successful manufacturing company can have challenges handling their expenses. Rather than struggling with cash flow instability and halted growth, start accounts receivable financing for manufacturers to get the capital your business needs.
The best thing about working with a factoring company is that you can immediately begin enjoying the benefits of manufacturing factoring. No need to wait 30-90 days for payments. Instead, receive as much as 96% of your invoice value without adding new debt to your business. We have made manufacturing factoring a fast and straightforward process.
Wilmington, Delaware, is home to a diverse range of industries that support small and large businesses. Delaware offers many opportunities for professionals to thrive and succeed, from major financial firms and STEM-focused companies to manufacturers and technology-driven businesses. Its world-class universities and R&D facilities, forward-thinking industry leaders, and competitive business costs create a solid and productive business ecosystem that embraces innovation and entrepreneurship.
Some of the key industries in Wilmington are: