Regardless of the type or size of the company, managing cash flow is always a crucial and often difficult thing. Many businesses in Idaho need some financing to help them smooth out their cash flow situation. Accounts receivable financing is an increasingly popular form of funding for Idaho businesses looking for a financial solution. With this financing alternative, a company 'sells' its accounts receivables for immediate access to cash.
Factoring is a way to fund your company by using the biggest asset it has, its accounts receivable in the form of outstanding invoices. The process is straightforward and works by having a company's outstanding customer invoices sold to a factoring company in Idaho, like 1st Commercial Credit.
The lending company buys those invoices for up to 97% (depending on the industry) of their total value. It advances the money right away so business owners can use it for pressing needs instead of being forced to wait until customers pay. Invoice factoring companies then will collect full payment from the company's clients directly and pay the remaining amount, minus the factoring fee for these services.
Invoice factoring has become such a popular and powerful tool for businesses in Idaho for many reasons, and providing help to companies with cash flow issues is a big one. In many cases, a company's customers pay within a few weeks or even months for services or products already delivered. Imagine what your business could do if these payments were received within 24 hours of the invoice creation.
Your business would have the possibility to take advantage of many possibilities that it might be forced to miss out on at the moment. Investments in growth, expansion, marketing, and hiring more employees are just some of the few areas where major changes could be made. This would be all possible because having funds available and ready to be used in a business bank account gives the financial freedom and ability to respond and cover unexpected costs without putting a strain on your cash flow reserve or business future.
In addition, business owners in Idaho have realized that the perfect world where customers pay for their orders right away doesn't exist. Removing payment terms is not an option, so the best solution is to find an alternative solution. What factoring offers is precisely that, payments upfront in exchange for a small fee. At the end of the day, it makes more sense to pay the small cost of factoring but have the cash available to continue running business operations and taking care of expenses and payroll. In principle, receivable factoring opens up more financing opportunities that cannot be achieved or matched by any other business funding options out there.
Receivables line of credit improves cash flow by providing businesses with significantly faster access to revenue owed to them. This solution allows businesses never to have to wait the entire term of their invoices to get the cash. Many companies waiting for 30, 60, or 90 days to be paid can experience a severe strain on the business, sometimes resulting in losing it. How can a business keep a healthy and consistent cash flow if customer payment terms range between 30-90 days? During this time, companies still need to fulfill payroll, cover business expenses, and keep up with growing orders. Small businesses and startups have a specially difficult time in this situation. Thankfully, 1st Commercial Credit is a specialized lending company offering various financial solutions for businesses in a similar case. Business owners can use our money to pay bills and business expenses, buy equipment and supplies, and most importantly, grow their business.
However, a business owner in Idaho will need to fund all of the above and more responsibilities from profits or working capital without instant access to the money locked up in the accounts receivable. In summary, unless cash flow is solid from other funding sources – a business can't grow or take on new projects and opportunities without the cash flow to support them. It's also important to know that cash flow isn't something that only needs to be solved once.
Running a successful business means recurring cash flow gaps that need to be resolved. Maintaining a strong and consistent cash flow over time is crucial for any business's success. Luckily, factoring offers the utmost flexibility for business owners to use it for as long as needed. This alternative also gives you ongoing access to cash flow, like a line of credit, and as your company raises more invoices, the amount of money that can be accessed also increases.
Idaho has made itself known as a prominent agricultural state with abundant natural resources. Throughout the years, it has become an agribusiness powerhouse for food production. Idaho offers many advantages for the farming business to thrive, including a pro-business environment, low-cost, and lowest power cost in the nation, to mention a few.
Idaho is ranked 7th in the country for agricultural goods and food product exports per capita. Idaho farmers and producers are responsible for many diverse crops, including seeds, dairy products, wine, beer, and livestock. The food production in Idaho provides about forty thousand jobs to residents of Idaho. Some of the big companies in Idaho include Chobani, Clif Bar, AgriBeef Co., GoGo squeeZ, Frulact, Lactalis, Litehouse, Meadow Gold, and many more. Wine, beer, and spirits are another sector that is currently booming in Idaho.
Idaho produces about 200 different agricultural products and processed goods. Dairy, potatoes, meat, frozen fruits, and vegetables are a few to mention. Six million acres of Idaho land are specialized in crop production. About 350 food manufacturers ranging from dairy products to seeds and crops have chosen the Gem State as a home for their businesses. Agriculture and food product manufacturing make up over 9% of Idaho's gross domestic product.
Finally, Idaho has over three times the national concentration of the workforce in the food industry. 1st Commercial Credit's agriculture invoice factoring program offers a financial solution that will meet all of PACA's strict requirements. Obtaining an accounts receivable credit line for the produce industry is a simple process. 1st Commercial Credit knows the unique characteristics to fulfill your agribusiness needs and understands the industry's cycle, challenges, and opportunities.
A factoring company (or accounts receivable factoring) converts invoices sold on credit terms to immediate working capital at a discount. It has become a simple, fast and easy way to access business cash flow. In comparison with a traditional bank loan, a company that factors receivables has a quicker approval process.
1st Commercial Credit is a factoring receivables company that specializes in evaluating accounts receivable and can make a prompt approval decision. The documentation requirements are not as lengthy, and the main requirement is that an applicant has invoices for work or orders that have already been satisfied. It also helps to have creditworthy customers. As long as a business has been in operation, meets revenue requirements, and is free of liens or legal issues, approval is likelier.
Some of the Key Benefits of P.O. Financing Include:
Ability to take on larger orders — With P.O. financing, your business will be able to accept larger contracts that often require more money upfront. There is no need to turn down potential new business opportunities because your company can't afford them. Turning down orders can result in a massive setback for your company's growth. With PO financing, you will have the capability to purchase the necessary suppliers and cover any additional expenses.
Purchase order financing is NOT a traditional loan — This form of financing is an advancement of cash that your business would otherwise acquire in the future. Unlike other forms of financing, the qualifications for purchase order financing are not as demanding or time-consuming. Decisions are based on the creditworthiness of your client. P.O. financing is also a debt-free form of financing, another big difference compared to a bank loan.
P.O. financing company will handle collections — Your company won't have to worry about chasing payments from clients because the finance company will do that so you can focus on other crucial aspects of your business.
The ideal solution for startups, small and new businesses — All these companies can be eligible for P.O. financing. Usually, it can be highly challenging for these companies to qualify for financing or bank loans. This is common because banks have a long and strict list of requirements like the track record of success and credit history before approving an application. We also have appealing and competitive po financing rates.
Payroll funding is a financial solution for businesses experiencing cash flow issues. This process involves selling the company's invoices in exchange for fast cash to cover payroll and other responsibilities. Not making payroll every week can push your employees away. Paying employees on time is critical to running a successful and trustworthy business and retaining talented working staff. With payroll financing, your company will fulfill its payroll and keep employees and clients happy. Your Idaho business will now be able to cover all business expenses and expand. Financing staffing agencies for payroll is a very simple process for us and we have many years of experience providing funding services to firms in this industry.
If you sell a product or provide a service for creditworthy customers, there is no need to wait 30-90 days to get paid. Working with a payroll funding company like 1st Commercial Credit will benefit small, medium, and large companies. Once you set up a factoring account with us, you will submit an invoice along with a copy of the timecards. Once 1st Commercial Credit receives this information, your company can advance a high percentage of the invoices. Funds will become immediately available so you can use them to cover payroll.
Payroll financing offers many advantages to business owners, and the improved cash flow is not the only one. Businesses using this alternative form of financing will also experience incredible financial flexibility. Traditional financing often requires businesses to pledge collateral like property and other assets, making it impossible for smaller businesses without property or with little equity to leverage to obtain financing. On the other hand, factoring doesn't require collateral as it uses a company's receivables to create its line of credit to fund itself. Business owners will also experience peace of mind and be free from the constant stress of cash flow issues. Our factoring solutions will allow you to focus on other crucial aspects of running a business often left untouched because of your cash flow situation.