Start Up Staffing Agency
Dry Foods Vendor
Over 3,200 Clients Funded
We are one of the most preferred factoring companies in the nation. Providing fast, flexible and affordable rates for small businesses.
1st Commercial Credit has been providing receivable based factoring services for all types businesses that serve many industries. We fund unpaid invoices for small, medium and large companies just like yours everyday. Our customers enjoy incredible growth after they set up an accounts receivable factoring agreement with us.
Our receivable based factoring programs allow our customers to offer credit terms to customers without running into cash flow shortages.
For companies that need cash sooner than the receivables are due, factoring receivables may be a good option.
Invoice Factoring, also known as accounts receivable factoring, is a very simple yet effective solution that allows companies to trade their invoices for an injection into their cash flow at a discount. Companies might choose to do this in order for them to meet their present and immediate operating expenses, while they are currently waiting on their receivable assets to be paid. This is very beneficial to companies that have a number of aging accounts receivables while also having pressing expenses to pay off.
Accounts Receivable Financing is our Business. 18+ years in business
Having a simplified option for getting cash is the biggest benefit. Factoring is not the same as a bank loan. We leverage your credit eligibility based on your buyer's credit quality, not your company.
An accounts receivable factoring service converts invoices sold on credit terms for immediate working capital. It has become a simple, fast and easy way to access business cash flow. 1st Commercial Credit is a factoring company that specializes in evaluating accounts receivable and can make a prompt approval decision.
Quick and Affordable
In comparison with a traditional bank loan, a company that factors receivables has a much quicker approval process. 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. The rate is usually reasonable for the structure of the arrangement. 1st Commercial Credit offers very low rates between 0.69% to 4%. Our average client pays an average discount fee of 2.25% depending on the days outstanding the invoices pay.
Factoring of receivables is an ideal solution for obtaining working capital. For short-term needs when cash is tight, it is especially helpful for avoiding standard loans. Factoring has helped many companies avoid costlier problems, such as not being able to make payroll.
Many business owners are hesitant to add more debt that must be reported on the balance sheet. Since factored receivables are considered contingent assets with financing that is secured from non-lender and non-investor sources, factoring is an off-balance-sheet form of financing. Although it is not necessary to report, it is prudent to add information about the factoring arrangement in the balance sheet footnotes to provide full disclosure if your company is public.
Minimizes Loss Risks
With conventional loans, all business assets are used as collateral. Using invoices as collateral minimizes the risks of losing equipment, inventory or real estate assets. Also, there is no need to give up equity. While some loans provide cash based on equity, using them is like starting over and losing part of an investment. By using receivables instead, business owners can protect their equity and get through temporary cash shortages. Selling equity during a cash crisis can be a detrimental choice for a business on a long-term basis.
Helps Small Businesses
1st Commercial Credit is a factoring company that helps out small business with minimal sales volume. It is difficult for small businesses that are newer and have lower annual revenue to qualify for conventional loans or lines of credit. Also, small business owners find that it normally costs less to use factoring instead of trying to put expenses on business credit cards.
How Invoice Factoring Helps Businesses Offer Customer Credit
A benefit that is big enough to warrant a more thorough explanation is customer credit flexibility. Today, many companies lose potential customers to competitors because they lack the ability to extend credit terms. While offering one credit option to clients is great, offering two or more payment term choices is ideal. Customers are more likely to make purchases when they feel comfortable, and a delayed payment may be easier for many clients to handle for a variety of reasons.
To better understand this, consider a government client that is adamant about having a 60-day payment term and a commercial client that demands a 30-day payment term. If the potential clients both promise loyalty to the business, not offering payment terms means that the clients will likely look elsewhere. With factoring, business owners have the option to factor invoices quickly after the services or product orders are fulfilled and the invoices are issued. A business owner receives quick cash, and the company that factors the receivables waits for the customer payments to arrive. This makes it easier to comfortably offer payment term options to clients without worrying about stifling cashflow.
Companies that have the ability to offer financing or delayed payments have more growth capabilities. Also, factoring companies can help businesses with scalability needs. Their cash offers are based on invoice amounts, and factoring providers can offer more cash based on the growing number of invoices in the future.
A common concern that business owners have in choosing a company that factors receivables is client creditworthiness. Determining the creditworthiness of the clients ordering the products or services can be a major undertaking to handle. However, the good news is that the chosen factoring company typically performs customer credit reviews internally. This eliminates another responsibility and adds a bonus to the list of benefits of invoice factoring.
Factoring in 3 to 5 working days.
Get funding Same Day Once Setup
Accounts Receivable Financing is our Business. 18+ years in business
Receivable Financing Rates
Financing Rates at 0.69% to 1.59%
It is an organic line of credit that grows with the increase in your invoiced sales. You are never over-extending your company's finances, and you are allowing your company to grow at a natural pace.
Business owners realize that there is no need to borrow money from a bank in order to offer credit terms to customers. Factoring receivables is different to a receivable loan offered by a bank. It is considered an ongoing purchase of the invoices at a discount and not a loan. This enables the business owner to obtain immediate cash flow collateralized by the outstanding receivables without going through cumbersome paper work and waiting weeks for a decision.
Select your state to learn more about how 1st Commercial Credit can help!