A complete supply chain finance solution for distributors and re-sellers.
Distributors are often faced with the need to add more to their capital to satisfy their increasing purchase orders. 1st Commercial Credit offers very simple cash flow solutions that can be set up in a matter of days.
"We utilize the financial strength of your customer in establishing your invoice factoring credit line. Once we establish your account, you will have access to other distribution financial tools we offer."
We can assist your business with our accounts receivable financing and supply chain finance solutions. Because of the flexibility that we offer, you will be able to take your company’s capacity to the next level.
1st Commercial Credit offers three major financial instruments distributors need.
Everything starts with the quality of your customers, financial strength and recurring sales.
Distribution facilities that need to offer credit terms to customers utilize our funding program. Distributors can easily tap into their receivables asset for immediate cash flow. You may offer credit terms to new and larger customers at an affordable cost, take advantage of early pay discounts offered by your suppliers, buy larger quantities with additional discounts, and countless other opportunities that your distribution business is missing out on.
1st Commercial Credit can set up your account within 3 to 5 working days for receivable factoring.
There are plenty of reasons why 1st Commercial Credit stands out from all other financial institutions. Our offers put your interest above all else.
1st Commercial Credit facilitates accounts receivable loans for distributors and resellers. We work with small and medium-sized businesses in a wide range of industries. Our commercial finance team will structure a unique quick funding solution based on your industry-specific needs. We provide cash flow lending solutions and work with start-ups, companies in the growth phase, companies undergoing mergers and acquisitions, and financial struggles. 1st Commercial Credit is a factoring company striving to provide companies the best guidance and business lending services.
Wholesale distribution is a crucial link in the supply chain that connects manufacturers with customers. The distribution business is a very complex business that involves the movement of products, which requires flexibility and fast response times to remain operating at the highest levels in the industry. To keep such high levels while continuing to grow, a reliable and healthy cash flow is needed. Companies can access this cash through distributor financing.
Having to wait for a customer to pay an invoice sold in payment terms (30, 60, or 90 days) can certainly be a limiting factor when considering growth opportunities. Invoice factoring offers an ideal financial solution to alleviate these cash shortages. In addition, 1st Commercial Credit can also provide inventory financing for distributors in the country.
In contrast to traditional forms of financing, distributor invoice factoring does not involve a lengthy application and approval process. Setting up an invoice factoring account is a simple process. After completing the application, the account is generally approved within 3 to 5 business days. Although credit scores are not required, the factoring company will still review the business’ invoice process and financial management. It will also run credit background checks of the business’ customers. The only factors affecting eligibility include having any outstanding tax liens or other financial impediments.
Our Invoice Factoring Services Beat Traditional Financing
Many small distributors have a difficult time accessing traditional sources of financing like bank loans. In many cases, banks won’t lend to smaller distributors experiencing uneven cash flow. On the positive side, the last thing a business with irregular cash flow needs is additional debt obligations. For these reasons, an alternative form of financing, such as invoice factoring, is quickly becoming the preferred option for distributors and wholesalers.
Invoice Factoring Process for Distributors
Business owners have used accounts receivable factoring for many years to alleviate cash flow needs. By selling outstanding invoices to factoring companies, a business owner can convert accounts receivable into immediate cash. Once a business sets up invoice financing, the process is a simple and smooth transaction that can be repeated as often as the enterprise wants.
The method of invoice factoring:
1st Commercial Credit’s factoring services will provide you with:
Your distribution and wholesale business will be receiving the following benefits:
Inventory financing acts as a short-term loan or line of credit for businesses, allowing them to purchase inventory upfront for future sales. The purchased inventory will be used as collateral. Inventory financing is commonly used to build up a company’s product inventory for peak seasons with high demands, take advantage of purchase discounts, and meet growing sales demand.
The financing company will want to be assured that you can make consistent loan payments from profits on your ongoing inventory turnover through high sales volumes. This form of financing benefits all aspects of the business, including packing, project design, factory production, shipping, and delivery of inventory to its destination.
Some manufacturers rely heavily on inventory finance to ensure their capability to produce the necessary product volumes to satisfy their clients. As a result, buyers will often favor manufacturers that use a reliable source for lending for production and inventory.
A reliable asset-based lender will finance many types of inventories. The requirement that the products are proven to be popular among consumers in the current market.
Inventory financing is often used by wholesalers, retailers, and manufacturing companies to accumulate inventory. The interest rates to borrow money are lower than unsecured debt because inventory is used as collateral. Some companies enjoy the benefits of paying their supplier right away or having a longer manufacturing process. Inventory financing can also be used to expand product lines and keep popular products stocked, so the business does not have to reduce investments in other company areas to purchase inventory.