We Deliver The FUNDS
We Deliver The FUNDS
Financing & Factoring Manufacturers
0.69% to 1.59%
.png)
Account Receivable Financing is our Business:
Invoice Factoring and Financing for Manufacturers
Our invoice factoring and accounts receivable line of credit provide the utmost flexibility for enhancing your company’s capacity to grow without having to worry about pledging additional collateral. We leverage your credit line solely on your customer’s financial strength, not your company's.
We offers receivable finance for manufacturers experiencing working capital shortages
Fast Approval Process
.svg)
3 to 5 Day Initial Setup
Free Invoicing Software
We offers receivable finance for manufacturers experiencing working capital shortages
Fast Approval Process
3 to 5 Day Initial Setup
Free Invoicing Software
Why Manufacturing Companies Choose Us?
Manufacturing companies are choosing 1st Commercial Credit because we offer various supply chain finance solutions. Our process is quick and straightforward.
"Manufacturers and Importers need more cash flow than ever before. Vital suppliers need to get paid and customers want longer credit terms."
No financials are required to apply, no upfront/hidden/or minimum fees. We make same-day decisions, offer custom rates, and accept low credit scores.
Manufacturers face several financial challenges that can strain their cash flow, including:
- Cash flow need for suppliers demanding payment before shipments.
- Duty Fees and logistics cost requires upfront cost.
- Customers want to pay past terms agreed to.
- Accounts Receivable becomes a large asset that most lenders don't want to lend on.
Are Your Manufacturing Orders Growing Faster Than Your Operating Capital?
Our supply chain finance solutions offer manufacturers the highest advance rate against the face value of the outstanding receivables. Purchase order financing and trade payable financing are also available for qualified manufacturing plants.
There are plenty of reasons why 1st Commercial Credit stands out from all other financial institutions. We provide personalized financing solutions tailored to the unique needs of manufacturers, with quick approvals, competitive rates, and flexible terms. Our expertise in the manufacturing sector ensures that we understand the challenges you face, offering support and guidance every step of the way. Additionally, our transparent processes and dedicated customer service make managing your finances seamless and stress-free.
Once your manufacturing plant is established with our receivable based line of credit, we can offer ancillary financial services:
- Custom purchase order financing
- Trade payable financing to suppliers
- Non-audited inventory finance
- International invoice factoring
.jpg)
Using Your Accounts Receivable Asset for Business Growth
Your production line no longer has to be disrupted, businesses 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 manufacturing business is missing out on.
Manufacturing facilities that need to offer credit terms to customers utilize our funding program.
Accounts receivable loans for manufacturers use the company's outstanding invoices. Money is tied to these unpaid invoices that the business needs to access to cover for daily operations. Accounts receivable or receivables represent a line of credit extended by a factoring company like 1st Commercial Credit.
Most companies have to accommodate and sell to their customers on credit terms. This means they deliver the goods and services immediately, send an invoice, then get paid a few weeks or months later. Having a large number of customers is excellent. The problem comes when some of them are paying late or are not paying at all, hurting your business. 1st Commercial Credit can offer an optimal financial solution to solve your business's cash flow issues.
We Offer Loans On Accounts Receivable For Manufacturing Companies
1st Commercial Credit can lend your manufacturing business up to 97% depending on the amount of accounts you sell to.
We offer lending on accounts receivable by providing a loan against receivables. Thanks to our expertise and knowledge in the manufacturing industry, we can provide higher advance rates with competitive fees.
Manufacturing Financing with 1st Commercial Credit
In the manufacturing industry, cash flow problems can prevent the timely delivery of goods to customers. Regardless of the type of manufacturing company you run, you need sufficient working capital to meet daily business expenses.
Cash flow issues can prevent a manufacturing business from making crucial upgrades such as purchasing equipment or hiring experienced professionals to run the business. Manufacturing financing can help resolve these issues.
For a manufacturing company, completing projects on time and meeting an increasing demand is crucial. Unfortunately, cash flow problems can sometimes make it challenging to take care of some essential financial responsibilities.
1st Commercial Credit offers manufacturing financing to help businesses solve these issues. We also provide other types of financial services for manufacturing firms, including manufacturing factoring, which can be used for short notice funding to resolve unexpected cash flow problems. It can also be used to fund growth or pay and retain highly-trained personnel.
This type of financing relies on the credit history of the customers, not the company. Factoring can be done on a short-term basis or under a long-term agreement. A manufacturing business loan provides the flexibility to choose the best arrangement for your company.
How Does Manufacturing Factoring Work?
Unlock Capital with Invoice-Based Loans for Small Manufacturers
Small manufacturers can unlock immediate cash flow by using their invoices as collateral, ensuring steady growth without financial stress.
Smaller manufacturing firms with eligible invoices sold to reliable customers can apply for loans using these financial documents as collateral. Asset-based lenders will evaluate these accounts receivable to determine their market value. If the loan is approved, 1st Commercial Credit will offer a high percentage of the value of these outstanding invoices upfront. When the invoice amounts are paid, factoring companies will collect the fees and return any remaining funds to the borrower.
Financing companies like 1st Commercial Credit specialize in asset-based lending solutions. Invoice loans and purchase order funding arrangements are ideal solutions for many small manufacturers struggling to obtain the working capital they need. By taking advantage of these alternative lending options, manufacturers can begin planning for future growth and do not have to worry about cash flow issues that could potentially hurt the business.
The Benefits of Working with Manufacturing Factoring Companies
A factoring relationship brings more than just immediate access to cash. There are many advantages for your manufacturing company when using this form of financing.
No monthly minimums or maximums: Your business sales are the only funding limiting factor. There are no minimum or maximum amounts you must factor. You can factor as much as you want and as often as you need to maintain the cash flow required for your business.
Not tied to long-term contracts: You will never be stuck in a factoring agreement. Most agreements are valid for six months to one year, so you can regularly review how the financing service works for you.
Take control and eliminate business current debt: Having a consistent supply of cash will allow you to pay off existing debt without acquiring new debt. You will also increase your creditworthiness to qualify for future financing.
Take advantage of early payments: manufacturers can negotiate early-pay discounts and take advantage of bulk order specials and other payment incentives with suppliers.
Save time and money: 1st Commercial Credit will provide credit and background verification services free of additional charge to make sure you're selling to creditworthy clients.
24/7 online platform access and reporting: 1st Commercial Credit's reporting online system is available to you 24/7. You can freely access your account information and integrate your factoring account with your other business records.
Low credit is approved: Manufacturing companies of all sizes and in all positions may qualify for our accounts receivable factoring program. Moreover, we do not take a company's credit history into account when making a funding decision.
Manufacturing financing can help your business:
- Expand operations
- Fund payroll and hire employees
- Make upgrades and purchases
- Invest in marketing and advertising
- Pay suppliers on time or even early
- Invest in new projects
Manufacturing factoring vs Traditional Bank
Manufacturing factoring is a better financial solution when compared to a traditional bank. Business loans from a bank have strict requirements to apply. They are usually paired with a complicated and time-consuming process. Banks demand an almost perfect personal credit and also ask for business collateral. Even if a company manages to qualify for all these requirements, the final approval and access to cash can still take several weeks or even months.
In summary, here are the main 5 difference when comparing a bank loan to factoring invoices:
- No collateral is needed
- Fast application and approval process
- High probability of approval
- Low credit score admitted
- Quick cash - enhanced cash flow
Manufacturing Factoring Cost (Rates and Fees)
When considering factoring services for your manufacturing company, understanding the costs involved is crucial. At 1st Commercial Credit, our rates are designed to be competitive and transparent, ranging from 0.69% to 1.59%. These fees reflect the flexibility and speed of cash flow solutions we provide, ensuring that you can access the funds you need quickly without hidden costs. Whether you need immediate capital to cover payroll, manage supplier payments, or seize growth opportunities, our factoring rates offer a cost-effective way to enhance your business's financial stability.
FAQ About Manufacturers and Factoring
Small to mid-sized manufacturers, especially those experiencing rapid growth or facing cash flow challenges due to delayed customer payments, can benefit from factoring. Industries like automotive, textiles, electronics, and more can use factoring to maintain steady operations.
At 1st Commercial Credit, we are transparent with our client and there is no up-front fees and no hidden fees added.
By providing immediate cash flow, factoring enables manufacturers to take on larger orders, invest in new equipment, and expand operations without the worry of cash flow constraints.
Factoring agreements can be flexible, allowing manufacturers to use factoring as needed. You can factor a few invoices or all of your receivables, depending on your cash flow needs.
