Our agriculture receivable factoring program is a unique financial tool and requires account representatives that specialize in meeting PACA’s strict requirements.
At 1st Commercial Credit, setting up an accounts receivable credit line in the produce industry is a streamlined process.
Unlike most banks and financial lenders, we know the special characteristics of the agricultural industry inside and out. 1st Commercial Credit is staffed with people that know the process, challenges and the opportunities that await your business.
Keeping up with your payables to growers is a challenge when you sell your produce on credit terms.
Produce clients that come to us usually have the same cash flow issues. The growers usually want cash on delivery or pickup, and the customers want credit terms of 14 to 21 days. They cause a tremendous cash flow gap when you are trying to grow your distribution company.
The agriculture and produce industry is undoubtedly one of the most fundamental sectors for the country and American families. Running an agriculture business involves a complex process with hard work and financial struggles from time to time. The process behind today’s farming involves numerous entities seemingly working together to bring food to our tables.
To make everything work smoothly, farms require consistent and reliable financing. Yet farming often involves a slim margin and seasonal sales that traditional banks generally do not want to touch.
Agriculture financing by factoring in receivables is how agriculture companies can access the funds needed to harvest and ship their crops. All of this while meeting the Perishable Agricultural Commodities Act (PACA).
The timely delivery of perishable produce is vital for agriculture businesses. Failing to do so can result in considerable business losses. Fortunately, 1st Commercial Credit can offer agriculture finance methods such as account receivable factoring. The setup process for agriculture factoring involves filling out a 2-page online application. In most cases, you can have the money you need in a matter of days rather than weeks or months.
Factoring produce receivables is an alternative financial solution to conventional loans and lines of credit. Unlike bank factoring and other financial lenders, which require almost perfect credit history and often substantial collateral to secure funding, factoring for agriculture businesses puts money in your bank account without making you go through an expensive, time-consuming, and painful process.
Agriculture receivable factoring offers many significant advantages to your company, including:
Funds will be received typically within 24 hours of invoice verification.
There are no minimum or maximum amounts to factor. You can pick and choose which invoices you want to send us. You also have absolute flexibility to use the money where you need it most.
No new debt acquired
Agriculture receivable factoring is not a loan, so it does not create debt on your company’s balance sheet
Build or improve your company’s credit
On top of not adding extra debt to your business, factoring loans can even help you get rid of existing debt and increase your credit score.
Produce, and agriculture distributors can use the cash provided by factoring companies to cover payroll funding, delivery, and pickup costs.
Unlike other Accounts Receivable Financing Companies that finance the produce and agriculture industry, 1st Commercial Credit makes receivable financing easy to obtain with minimal paperwork. Our decisions are not based on financials, tax returns or even equity to debt ratios. We make decisions primarily on the invoicing process and the credit strength of the account debtor (buyer).
Produce and agriculture factoring have been used by many companies over the past years and have become a long and reliable financing method for agriculturists. Many companies can benefit from agriculture funding. Among them are, farmers, retail food processors, food manufacturing companies, food packaging companies, food distributors, shippers, and suppliers.
1st Commercial Credit factoring program will provide capital for your business within just a few days. Once your account is approved, we can finance the invoices and advance you the funds within only 24 hours. Doing so will allow you to receive quick cash and avoid your business to wait weeks or months to receive payment from your customers.
Factoring companies that offer financing solutions to farm businesses charge a fee for accelerating this payment process which, with 1st Commercial Credit range as low as 0.69% to 1.59%.
1st Commercial Credit is a global leader in accounts receivable financing for small to medium-sized businesses and can provide lending options for all produce-related companies.
1st Commercial Credit has the resources and experience to help companies meet their payroll and other business obligations. Business owners come to 1st Commercial Credit for business financing solutions and take advantage of their still invoices.
1st Commercial Credit is a factoring receivables company that provides financial services for producers and makes the entire process simple and accessible. Receivables funding can be a complicated process that can be made easier if you partner with an experienced funding company.
Your ability to grow your business will depend on your ability to manage your business's day-to-day finances. For small and medium-sized businesses, one of the most common issues is cash flow. Especially for those businesses just starting, maintaining a healthy and consistent cash flow can be a huge problem. For example, many companies in the agriculture sector struggle with cash flow dips when it takes 30, 60, 90, or more days for client payments to arrive.
1st Commercial Credit has a two-page online application that can be filled out and submitted in a very short time. We can usually approve applications the same day we receive them. Once we have approved an application, we can have the account set up in 3 to 5 business days. Once an applicant is approved, it will have access to advanced funds against qualified invoices within 24 hours of receiving those invoices. The cost of factoring depends on the industry, having creditworthy customers, and the invoice management process. Our factoring rates for the produce industry are between 0.69% to 1.59%. You can contact us for a more direct and specific proposal for your business.
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