Trade Payable Financing
1.5% to 5%
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Start using our money in 3 to 5 days
1st Commercial Credit Trade Payable Credit
1st Commercial Credit can accommodate creditworthy Buyers with a new financial service that provides additional working capital to pay suppliers. Up To $10 Million Credit Limit - $100k Minimum Spend.
P.O. Financing involves a specialized lender that provides transactional financing to a vendor/business (the Applicant) to help process an order requested by a credible account debtor (Customer being sold to).
With purchase order financing, businesses can confidently accept larger orders without worrying about cash flow limitations. This type of funding ensures that suppliers are paid on time, preventing production delays and maintaining strong relationships with vendors. It also allows companies to take advantage of growth opportunities and expand their market presence without needing to secure traditional loans or dip into their own reserves. By leveraging purchase order financing, businesses can fulfill customer demand, increase revenue, and scale operations more effectively.
Purchase order financing is our business for over 20 years.
Fast Approval Process
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3 to 5 Day Initial Setup
Light Assembly Accepted
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Purchase Order Financing is our Business for over 20 Years.
Fast Approval Process
3 to 5 Day Initial Setup
Light assembly accepted
What Is Trade Payable Financing?
Trade finance is the process of financing goods or services in a trade or transaction, that goes from a supplier to the end buyer. The term "trade finance" refers to a wide range of financial instruments.
Purchase order financing, invoice financing, supply chain finance, and letters of credit (LCs) are a few examples. Importers or exporters can employ these financial tools. Trade payable financing is a program that allows a company (buyer) to extend the payment terms of its purchases from vital suppliers by partnering up with 1st Commercial Credit. We will pay the suppliers on behalf of your company on the due date and collect from the company later.
The suppliers don't have to be legally involved in this arrangement, making it a quick and straightforward process. Trade payable finance works best for those companies sourcing from crucial suppliers and looking to extend the payment terms. Trade financing, also known as import and export finance, is an important economic driver for development since it keeps maintaining credit flowing throughout supply chains.
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Trade Payable Service for Buyers
You can immediately free up liquidity by using our funds alongside your bank line of credit.
Take advantage of early payment discounts offered by vital suppliers or extend payment terms. Your company can access up to $10 million in purchasing power within 3 working days. Maximize your bottom line by saving on early payment discounts. In summary, we pay your company to make money by using our services.
What Makes our Trade Payable Financing Different for Buyers?
Buyers can easily sign on with minimal paperwork within 3 to 5 days. Avoid the laundry list of items required by other lenders to setup.
Too many supply chain finance companies make this too complicated. We made it a simple process to apply with a 2 page application for buyers to set up. Once we set up the account, the buyer then provides us with the vendors and invoices they want to pay and we pay the suppliers. It's that simple!.
1st Commercial Credit is not the first company to offer this type of service, however we believe we have the most user friendly system out there with the highest buyer rebates.
Why is Trade Payable Finance Becoming a Popular Choice for Buyers?
Vendor payment programs are here to stay and the concept is growing as more buyers are learning about the early payment discount profit center.
Besides the basic understanding of buyers now having more access to money and are eagerly chasing down early payment discounts, what are the other issues and concerns that are driving buyers away from the factoring industry.
- Buyers have more incentive to participate in the action as they are learning that some suppliers are needing faster payments. They now see it as a profit center when they realize suppliers are willing to give up a discount through either setting up an account with a factoring company or offer 2% or 3 % off for early payment from the buyer.
- Buyers no longer want to be sending payments to a third party and prefer to make out the payments to vendors directly.
- Buyers are annoyed by invoice factoring companies calling for verifications of the invoice and have to keep up with notice of assignments. Sometimes leading to legal issues due to payments going to the vendor instead of the factoring company.
If you're a distributor, manufacturer, or you're buying goods internationally, using trade payable financing can help your business conserve cash and streamline operations. This financing method works by having 1st Commercial Credit pay your supplier directly or reimburse you for payments you have already made. In short, cash flow lenders can relieve cash flow issues by financing a purchase at a more generous advance rate or over a more extended period.
Some benefits of trade payable financing for buyers include:
- Extend payment terms for purchases from crucial suppliers
- The buyer defines the payment term
- It is a straightforward and fast service to implement
- Can be classified as Trade Financing or Trade Payables rather than Financial Debt
Use Our Money To Pay Suppliers
Are you passing up on early payment discounts to suppliers? Why? Take advantage of our trade payable program and earn cash back rebates using our payables platform.
Why Do Trade Payable Platforms Fail Or Are Not Used After Implementation?
It's all about ease of use, short setup cycle and 100% vendor approval without waiting on a network to process documentation.
There are many trade payable finance companies in the market to choose from. The reality is buyers need an easy process to apply, easy method to approve vendors, and a fast and flexible system for the internal staff to learn the process. If the system is too difficult for the accounts payable department to track and pay suppliers with additional work and multiple processes, it will fail. If the system requires a 50+ page document for the suppliers to sign up for the program, it will fail. The main focus is to maintain very few steps for the supplier to submit an invoice and the payables department to approve, authorize to pay and track.
If the system is too complicated, or the buyer has to hire and payout an IT company to setup API integration in order to communicate with the trade payable service provider. These obstacles should not exist and will discourage buyers from continuing the implementation process the leads to a complete halt.
1st Commercial Credit makes it very simple with no software cost or integration needed.
FAQ About Trade Payable Financing
Businesses of all sizes that want to improve cash flow, manage their working capital more effectively, or build stronger relationships with suppliers can benefit from this solution. It is particularly useful for companies facing seasonal fluctuations, rapid growth, or extended sales cycles.
Unlike traditional loans or lines of credit, Trade Payable Financing is based on your payables and doesn’t require collateral or add debt to your balance sheet. It offers more flexible terms and is quicker to set up, focusing on the strength of your supplier relationship rather than your credit history.
Yes, Trade Payable Financing can be combined with other solutions like invoice factoring or purchase order financing to create a comprehensive working capital management strategy. This approach allows you to optimize cash flow throughout your supply chain.
