Factoring Companies Allows Distributors To Bring In Money Without Taking On New Debt
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.