Accounts receivable financing is 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.
1st Commercial Credit provides a variety of purchase order financing solutions to meet your trade financing needs. P.O. financing is suitable for any wholesaler, reseller, importer or any company that purchases and resells goods.
1st Commercial Credit is one of the largest accounts receivable lending companies for small to medium-sized businesses in many different industries. We have substantial experience working with the healthcare, temp staffing, service, and manufacturing sectors, to mention a few.
AR financing is a financing agreement in which a company receives working capital related to a portion of its accounts receivable. Accounts receivable financing arrangements can be structured in multiple ways, usually as an asset sale or a loan. When structured as an asset sale, we advance the funds by using a company's outstanding invoices as collateral. When we finance receivables, we give your cash flow the chance to grow and increase gradually with your invoiced sales.
The best part about financing receivables is that it is based on the creditworthiness of your clients and not your business. That is precisely why so many companies are turning to receivables-based financing to solve many of their cash flow shortage issues. This cash advance system relies on your client's credit scores, not your business, making it easier for newer companies with no extended credit or operational history.
1st Commercial Credit understands the challenges businesses face when running a business with cash flow shortages. We are prepared to advance your funds based on your invoices' value as soon as possible. You will be able to fulfill your regular obligations and start thinking about new growth business strategies.
We can evaluate your accounts receivable and current financial situation with no obligation and show you how receivable financing can significantly improve your company's finances. Companies are provided with a flexible and accessible solution to solve their cash flow issues and continue running a successful business without adding an insane debt and dealing with banks.
What Is The Process of Financing Receivables?
The application process for invoice lending is fast and straightforward. We provide the complete application process online—no need to spend hours printing or filling out paperwork. You can submit your complete application package and receive funds in 3 to 5 working days. With 1st Commercial Credit, the requirement list is short and simple.
To improve cash flow and achieve financial stability, a business can choose which outstanding invoices to sell to a factoring company. The lending company will immediately give you a large percentage of the total invoice amount and then collect payment directly from your clients.
The process of factoring with 1st Commercial Credit looks like this:
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 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.
Consider Accounts Receivable Financing For Your Business
The important thing about financing receivables is that it is not a loan; it is an advance against invoiced sales your company has already delivered but hasn't received payment yet. Businesses are not taking on new debt because the labor and products have already been paid.
We offer a lifeline to those companies who cannot qualify for traditional lines of credit because of bad credit. We also facilitate financing for companies growing faster than their incoming cash or so new that they cannot get funding from any other lending institution.
If your business has the invoices to improve your cash flow, but slow-paying customers are pulling your business down, 1st Commercial Credit can help. Our financial experts can explain and show how accounts receivable financing can significantly improve your company's finances and get you the money you need immediately. Businesses in Indiana can also apply and benefit from our asset-based financing programs if applicable.
Smaller manufacturing firms in Indiana with outstanding invoices from reliable customers can apply for loans using these financial documents as collateral. Specialized lenders will evaluate these accounts receivable to determine their market value.
If the loan is approved, the lending institution will offer a substantial percentage of the value of these outstanding invoices as an immediate loan. When the invoice amounts are paid, the lender collects its part and fees and remits any remaining funds to the borrower. In effect, invoice loans serve as cash advances on future payments to provide added financial flexibility for the manufacturing industry.
Factoring companies like 1st Commercial Credit specialize in providing quick and accessible lending solutions for the manufacturing industry. Invoice loans and purchase order funding arrangements are ideal solutions for many small manufacturers in Indiana facing challenges to obtain the working capital they need in today's tight money marketplace. By taking advantage of these alternative lending arrangements, manufacturers can participate in the current economic recovery and begin planning strategies for future growth.
Indiana has a strong legacy in automotive manufacturing and a particularly attractive environment and offerings for employees, including financial incentives. The future of advanced manufacturing in Indiana looks more promising than ever before.
Indiana offers a supportive environment that benefits companies and employees for business owners looking to make their way in the manufacturing space. Currently, Indiana is the second-largest automotive industry in the U.S. Indiana businesses also enjoy remarkable regulatory freedom. All of this makes Indiana more competitive than other states, including California, Illinois, and New York.
Indiana is home to nationally-ranked universities with outstanding manufacturing and engineering degree programs. Training initiatives like Next Level Jobs include a powerful advanced manufacturing track dedicated to automation and robotics technology. As a result, Indiana boasts a deep, highly-skilled workforce.
The staffing industry is crucial in many states in the U.S. Staffing firms supply the workers that will fulfill the positions and help run businesses in various sectors. It is common to have cash flow fluctuations when you have a temporary staffing business, and payroll is one of the main expenses that every firm needs to have at the top of its priorities. There is nothing more crucial than taking care of the people that take care and help run your business.
If you come across a challenging financial situation in which you're unable to cover your employees' salaries, don't panic, 1st Commercial Credit has the payroll solution for you. Startups and small companies can sell their invoices to 1st Commercial Credit and, in return, have the cash advances needed to cover their pressing payroll needs. A line of credit secured by accounts receivable for staffing agencies in Indiana will provide them with enough funds to cover payroll, pay for other expenses, and finance business growth.
Indiana has the right conditions to support the development of a meaningful, valuable, and booming agriculture industry. Indiana's agricultural excellence is also driving exploration, experimentation, and innovation. Agriculture is the key to the state's economic foundation. It adds $31.2 billion to the economy derived from food, fiber, fuel, feed, and forestry products. Indiana's agriculture industries combined employ close to 200,000 direct workers. To better understand the impact, every 10 jobs directly agriculture-related support an additional eight jobs in the state.
Indiana ranks 10th in national total agricultural production and is known for its agricultural diversity. Over 80 percent of Indiana land is devoted to farms, forests, and woodlands. Indiana also has more than 10,000 agribusiness companies, creating revenue of over $4.6 billion in agricultural exports, putting the state in 10th position in the U.S. for $11.2 billion in products sold. The top 5 commodities of Indiana include corn, soybeans, poultry and egg, hogs and pigs, and dairy.
Among the major companies in the agriculture and food industry are Tyson Foods, Pepsico, Inc, Corteva, Perdue Farms, Bayer AG, Morgan Foods, The Coca-Cola Company, and many more. If you have an agribusiness thriving in Indiana and require immediate financing, come to us for agriculture factoring. We have the fastest approval process and competitive financing rates!
Another thriving sector in this state is service-based, specifically banking, insurance, healthcare, education, financial services, information technology, and high-tech manufacturing. Still, other industries such as electrical goods, medical equipment, and pharmaceuticals have grown recently as well. Financing receivables for service providers is a simple process for us. We can evaluate your business' situation and provide a financial solution right away without credit checks, collateral, or interest.
When business owners face stagnation in growth and sales, often the cause is a lack of working capital. Without sufficient working capital, businesses can’t take advantage of opportunities to invest in equipment or facilities to propel growth. Many industries are capital intensive, and their competitiveness and growth depend primarily on having the most up-to-date equipment and technology. Not having the funds to invest in equipment and innovation could leave a business with old and obsolete equipment and inefficient processes.
Any type of business using equipment daily can benefit from this type of financing. Equipment financing can be a strategic asset to stay ahead of the competition and respond quickly to changes in the market. No matter the reason, having reliable and updated equipment for your company can have many advantages. In particular, the following three industries can benefit from working with equipment loans and leases provided by specialized small business lenders like 1st Commercial Credit.
Agriculture - Equipment financing for agriculture can significantly impact a farmer on the operation’s income and cash flow. Business owners can purchase the machinery and equipment needed to improve efficiency without worrying about not having the cash amount upfront to pay for it. The equipment they are buying includes tractors, calf feeders, combines, manure spreaders, and more. Farmers greatly benefit from setting up seasonal payments when utilizing equipment financing. This payment structure allows them to match their monthly equipment payments with incoming cash flow.
Trucking - The trucking and logistics industry varies from trucking to express delivery services. Having a business line of credit or working capital from an equipment financer can help these businesses respond to consumer demand while growing their operations. Equipment financing can also help improve their reputation with customers. 1st Commercial Credit will help companies in Indiana by providing equipment financing for trucking companies when they need it.
Manufacturing - in order to separate themselves from the competition, manufacturing companies should look to lease or finance their equipment with a reliable and flexible lender that knows the industry and the equipment required. Having the ability to obtain and upgrade fabrication equipment and machine tools is key for businesses to compete in the marketplace and reach a good and efficient operation. To do all this, accessing quick and appropriate funding is a must. 1st Commercial Credit has worked with manufacturers in Indiana for many years and is very knowledgeable about the industry. We can provide a variety of manufacturing equipment leasing and financing services with flexible terms tailored to your company’s unique needs. We also offer loan and lease options for new and used equipment.