Accounts Receivable Financing
0.69% to 1.59%
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Account Receivable Financing is our Business:
Does Your Company Need Accounts Receivable Financing?
At 1st Commercial Credit, we understand the challenges that come from running a business with cash flow issues. That is why we are prepared to advance you funds based on the value of your invoices as soon as possible. If you're considering borrowing against accounts receivable, we can help you unlock the value of your outstanding invoices and access working capital quickly. You will be able to meet your regular obligations and start to think about the ways in which you can grow your business.
We'll be happy to evaluate your accounts receivable with no obligation and show you how accounts receivable financingcan strengthen your company's cash flow. Unlike traditional loans, our financing program is structured as an ongoing purchase of your receivables, so there are no monthly loan payments and no additional debt on your balance sheet.
Whether you're looking to borrow against accounts receivable or explore alternatives to conventional business financing, our team can help you choose the solution that best fits your needs.
Accounts receivable financing provides businesses with immediate access to cash by advancing funds against outstanding invoices before their payment due dates.
As an experienced factoring company, 1st Commercial Credit advances an agreed percentage of your eligible invoices in exchange for a competitive fee. We proudly provide accounts receivable financing solutions to businesses across a wide range of industries throughout the United States.
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3 types of accounts receivable financing programs that can provide fast cash
Invoice factoring — 1stCC will factor your invoices and, depending on the industry, advance up to 97% of the face value of the outstanding invoice. The invoice factoring company will take ownership of your invoices and will pursue collection from your customers directly. When 1stCC receives full payment for the invoice, it will then send you the remaining percentage minus a small factoring fee.
Accounts receivable loans — this type of “loan” does not act as a traditional bank loan. With this particular financing solution, a company selects which receivables to submit to the lender (1stCC) for early payment. In contrast to factoring, with accounts receivable loans, your company will receive full payment for each invoice initially and not have to wait for the remaining balance once the invoices are fully paid. This is the main reason why it is called a “loan,” even though it is extremely different from a traditional loan. The financing rates associated with this form of financing are generally lower, transactions do not appear on the balance sheet, and they do not impact a company’s debt ratio.
Asset-based lending — involves loaning money in an agreement secured by a company’s collateral. An asset-based loan is secured by equipment, accounts receivables, inventory, or other property owned by the borrower. This type of financing serves businesses, not consumers. It is also called asset-based financing. The company usually will have to commit most of their receivables for this form of financing and has little flexibility in terms of which ones are submitted.
What Is The Accounts Receivable Financing Process?
The application process for financing receivables is very simple and fast with 1st Commercial Credit's underwriting department. We have the complete application process online, no printing or filling out paperwork by hand. You can submit your application package and get funded in 3 to 5 working days.
All we need to see is an accounts receivable aging report, your customer credit limit request, articles of incorporation, copies of your outstanding invoices and rate confirmation agreements/ purchase orders.
In some cases, we can get you an answer on the same day. It only takes three to five business days to set up your account and start transferring money to your bank account. It is that easy.
Accounts Receivable Financing is a method 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.
What Is Accounts Receivable Finance?
Accounts receivable financing is a type of business financing that allows companies to borrow against accounts receivable and unlock cash tied up in unpaid customer invoices. Instead of waiting 30, 60, or even 90 days for customers to pay, businesses can use their outstanding receivables to access immediate working capital and improve cash flow.
When borrowing against receivables, a financing provider advances a percentage of the value of eligible invoices. Once the customer pays the invoice, the remaining balance is released after deducting the agreed financing fee.
One of the biggest advantages of accounts receivable financing is that approval is based primarily on the creditworthiness of your customers rather than your business. This makes it an attractive funding solution for companies with strong commercial clients but limited access to traditional bank financing.
Businesses commonly use receivables financing to cover payroll, purchase inventory, manage seasonal demand, invest in growth opportunities, or bridge temporary cash flow gaps. All without waiting for invoices to be paid!
Can Your Business Qualify for Receivable Financing?
We can fund your business, regardless of the size of your business, by using your accounts receivable as collateral. Your company could be one week old and, as long as you have qualified outstanding invoices, we can help you get the funding you need.
We can help any company, regardless of its financial status and have successfully helped clients who have tax liens and we have also helped companies that could not get approved for a bank loan of any kind. There is no need to rely on a bank when we can provide you with the funding you need based on the invoiced sales that you have.
We Attract Clients That Experience:
Consider Accounts Receivable Financing For Your Business
The important thing to remember about financing receivables is that it is not a loan. This is an advance against invoiced sales your company has already delivered. You are not taking on new debt because you already paid for the labor and products, or the debt is still pending to be paid to suppliers.
We can help companies who cannot get lines of credit because the company principals have bad credit, companies that are growing faster than their incoming cash, or so new that they cannot get funding by a bank.
If you have the invoiced sales to improve your cash flow but slow paying customers are pulling your business down, then we can help. Our financial experts will show you how accounts receivable financing can significantly improve your company's finances and get you the money you need right away.
Which Type Of Businesses Can Benefit From Account Receivable Funding?
Your business will likely be eligible for accounts receivable factoring if you sell your services or products to other companies.
1st Commercial Credit finances small businesses and startups. Our approval and funding decisions for loans on receivables are not based on low or bad credit. The financing you need can be obtained by selling your accounts receivable to an experience factoring company like ours. We work and factor receivables for various industries, including staffing, transportation, manufacturing, distribution, oil and gas, agriculture, healthcare, IT, and many more.
Cable and Telecommunication — We provide funding for the telecom industry every day. Telecom factoring offers companies a financial solution by turning invoices into same-day cash. Cash-flow issues caused by slow-paying customers are eliminated. Telecom financing involves a debt-free financing solution that gives you money to cover your bills, fund payroll, invest in new resources, and more.
Oilfield and Gas — Oil and gas factoring is a financing solution for service contractors and suppliers in need of fast cash. Oilfield invoice factoring provides consistent cash flow for companies to meet payroll, cover expenses, and grow their business.
Trucking & Freight — Freight invoice factoring offers a reliable and optimal financing option for companies in this competitive sector. For trucking companies with freight brokers as customers, invoice factoring will provide a cost-effective and dependable financing solution.
Staffing Agencies — Staffing agencies sometimes struggle to meet weekly payroll when it takes anywhere from 30 to 90 days for payments to come in. Payroll funding for staffing agencies gives companies access to the working capital they need to meet payroll obligations and grow.
Construction — Construction factoring is an alternative form of financing for your cash flow challenges. Slow payments from clients are standard in the construction industry. These unpaid invoices can force your business to stop being able to accept new, more extensive projects. Factoring allows companies to access the funds needed to increase construction staffing efforts, cover employee payroll, upfront costs, and purchase equipment.
Government Contractors — When dealing with government contractors, there’s often a long time between invoice and payment. The problem is that working capital is needed today to meet payroll and fund operating costs. By selling your government invoices and accounts receivable to 1st Commercial Credit, you can turn government receivables into immediate cash.
Accounts Receivable Financing (Rates and Fees)
When exploring accounts receivable financing for your company, understanding the associated costs is essential. At 1st Commercial Credit, we offer competitive and transparent rates, typically ranging from 0.69% to 1.59%. These rates reflect the flexibility and speed of our financing solutions, enabling you to access the funds you need quickly and without hidden fees. Whether you're looking to improve cash flow, cover operational expenses, or seize new business opportunities, our financing options provide a cost-effective way to strengthen your company's financial stability.
FAQ About Accounts Receivable Financing
Accounts receivable financing is a financial solution where businesses sell their outstanding invoices to a financing company at a discount. This allows companies to access immediate cash flow without waiting for customer payments.
This financing option is ideal for businesses across various industries, including manufacturing, transportation, staffing, professional services, and more. Any company facing cash flow challenges due to extended payment terms or growing sales can benefit from accounts receivable financing.
No, accounts receivable financing is not a loan. It is the sale of your invoices for immediate cash. Since it is not a loan, it does not add debt to your balance sheet and does not require collateral beyond the invoices themselves.
Borrowing against receivables means using outstanding invoices as collateral to obtain financing. Rather than relying on traditional business loans, companies leverage the value of their unpaid invoices to access cash quickly. This type of financing is commonly used to bridge cash flow gaps, fund payroll, purchase inventory, or invest in growth while waiting for customers to pay their invoices.
