If you have a business in Iowa that sells to commercial accounts on credit terms, you may well qualify for accounts receivable financing, otherwise known as factoring. This means that, rather than having to go through a lengthy and rigorous banking loan application, you are able to release instant cash for your business from the value of your customer accounts. At 1st Commercial Credit, we make receivable financing easy to obtain with minimal requirements and usually can have a same day decision.
How Will I Know if my Business Will Qualify for Factoring Services?
While Iowa is a heavily industrial state, it remains a centre of agriculture. The agricultural service and distributions industry of supplies remains a very strong market. Suppliers and manufacturers have always used accounts receivable financing more than any other, due to its seasonal nature, and generally most businesses involved with the industry tend to qualify. In the “technology corridor” of Cedar Rapids and Iowa City, meanwhile, there are hundreds of manufacturing companies producing items such as steel, food products and agricultural machinery, all of which are likely to qualify for factoring as they sell on open credit terms to other credit-worthy businesses.
Factoring Companies offer receivable financing owed by commercial accounts.
Generally, all businesses that sell on open credit terms to other businesses qualify for receivable financing, but there are some notable exceptions. Your sales must be “final sale,” which means there can be no disputes or refunds, and your customers must be relatively credit-worthy. Many of our customers are businesses who have already been rejected for a traditional loan, not because sales are poor or their business is failing, but simply because they don't have enough of a sales record. Start-up companies are most often those who need immediate cash, and who find it most difficult to obtain.
Some Industries don't Qualify for Factoring Companies
Even though agriculture and manufacturing are the main industries of the state, there are still many other types of business that unfortunately wouldn't qualify for accounts receivable financing in the area. In Des Moines, for example, the retail sectors dominate, neither of which would be eligible for this type of financing due to the consumer based receivables.
However, luckily here at 1st Commercial Credit we provide two other options for those businesses who don't qualify for accounts receivable financing; asset based lending and purchase order financing. Give us a call today to find out how we could help you improve your immediate cash flow.
Accounts Receivable Financing is our Business!
Receivable financing rates at 0.69% - 1.59%
No financials - No monthly minimums - No invoice minimums
No facility fees - No audits - No up-front fees - No hidden fees
Set up account in 3 to 5 working days - 24 hr funding thereafter
Receivable credit lines starting at 5,000 & up to 10 million
Customer referrals upon your request
We Make Same Day Decisions Start Today
We Make accounts receivable financing a Simple Process!
experiencing cash flow shortages due to a slow turnover in accounts receivable
fast growing companies whose past earnings and sales histories will not justify traditional bank loan financing
start-up businesses with no financing base
principals with good or bad credit and cannot obtain traditional financing
have lost their line of credit due to covenant violations
need export receivable financing, credit protection or purchase order financing
Is your business growing faster than your operating capital?
At 1st Commercial Credit, our accounts receivable factoring service is a flexible source of funds for businesses. We are a factoring company that simply utilize your accounts receivable as the collateral and advance funds against the face value of your invoices. The factoring credit line grows proportionately with your sales cycle and we can fund as little as $5,000 a month and up to $10 million for larger companies.