We Deliver The FUNDS
0.69% to 1.59%
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Invoice Factoring Company In Iowa
Accounts receivable financing is used by businesses to convert sales on credit terms for immediate cash flow. 1st Commercial Credit adopts a quick and simple approval process and expedites initial funding in 3 to 5 working days.
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What Is The Process For Accounts Receivable Financing?
1st Commercial Credit is a company that factors and specializes in evaluating accounts receivables. We convert invoices sold on credit terms to instant cash and have made it a simple, fast, and easy way to obtain cash flow for your Iowa business. 1st Commercial Credit can provide a prompt approval decision for business owners. The factoring process involves filling out a 2-page online application form, and the decision comes in 3-5 days. Once approved, Iowa businesses will obtain funding within 24 hours.
Today, business owners are more interested in finding lending companies that are accessible and provide them sufficient funding while staying away from adding new debt to their company. To determine which financing alternative is best for your company, 1st Commercial Credit can evaluate your specific situation and provide you with some funding alternatives.
The application process for borrowing against accounts receivable is quick and straightforward with us. We have the whole application process online, no printing or filling out paperwork by hand. You can submit your application pack and get funded within a few working days.
All we need to see is your customer credit limit request, an accounts receivable aging report, articles of incorporation, copies of your outstanding invoices, and rate confirmation agreements/ purchase orders. In some cases, we can provide an answer on the same day. It only takes three to five business days to set up your account and start receiving money straight into your bank account.
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Receivables financing is when a company receives funding based on unpaid invoices for sales already delivered. Those invoices refer to purchases made, but the payment hasn't been received yet. From an accounting perspective, there are 2 types of receivables: accounts payable and accounts receivable. Accounts payable means that the company (buyer) owes money to the supplier. On the other hand, account receivable represents the money owed to the company.
Factoring companies in Iowa specialize in receivables financing and invoice factoring while offering an accessible and reliable alternative to bank financing. Banks and some insurance companies provide receivables financing services, but their application process is time-consuming and over-complicated. Often, they will demand additional documents and high-value assets as collateral. Moreover, most banks lock their clients into long-term contracts. Traditional institutions bind their clients to sell all their invoices exclusively to the banks via bank factoring.
All these issues are not an obstacle when choosing 1st Commercial Credit as the alternative for funds. For example, we can remove the disadvantages businesses face with traditional receivables financing companies. We put a lot of time and effort into trying to offer our clients complete flexibility. We allow businesses to fund only the invoices they choose with honest and straightforward fees and terms. Our accounts receivable factoring rates are among the most competitive and flexible in the factoring industry in Iowa.
Is Your Iowa Company In Need For Accounts Receivable Financing?
At 1st Commercial Credit, we understand the challenges involved with running a business with cash flow issues. That is why we are ready to advance funds based on the value of their invoices as soon as possible in the form of a line of credit secured by accounts receivable. Business owners will be able to meet their regular obligations and start to think about how to grow their business.
When Iowa companies are experiencing rapid growth within their industry, they will often find themselves needing extra cash to fulfill some crucial financial responsibilities such as payroll, cost of expansion, marketing, and other daily business expenses. For some business owners, cash flow issues can begin in this situation, but thankfully invoice factoring can be a lifeline for your business and an ideal financial solution.
Offering attractive credit terms to clients is what could turn out to be the cause of your cash flow issues. Credit terms of 30+ days can cause a long wait for payments to come in while the business continues running operations and has expenses to cover. Our financial solutions will allow for an injection of fast cash into your cash flow at a discount, allowing you to continue your business's daily operations, such as making payments on time to vital suppliers.
We are ready to evaluate your receivables with no obligation and show you how accounts receivable financing can significantly improve your company's finances. An account receivable loan is nothing like a traditional bank loan. Our financial program is designed as an ongoing receivable asset purchase, so there is nothing to pay back.
Why Choose Produce And Agriculture Factoring?
Iowa produces one-fourteenth of the country's food supply and leads in the production of corn, soybeans, pork, and eggs. This base provides a robust strength to the region and the agricultural sector. Given global food security needs and an expanding biobased products sector, its supply chain will likely remain strong and vibrant. The state's rich soil supports significant crops, including corn and soybeans used to produce high-quality inputs (yeast, enzymes, sweeteners, flavors, proteins, fibers, gelatins, and binders.) that are critical to the world's food industry.
Facilities throughout Iowa are continually developing new varieties, processes, and technologies to improve the agriculture industry. Iowa's ingredient innovators collaborate extensively with food processors and Iowa's research institutes to create solutions and new products.
What is a Factoring Company?
A factoring company (or accounts receivable factoring) converts invoices sold on credit terms to immediate working capital at a discount. It has become a simple, fast and easy way to access business cash flow. In comparison with a traditional bank loan, a company that factors receivables has a quicker approval process.
1st Commercial Credit is a factoring receivables company that specializes in evaluating accounts receivable and can make a prompt approval decision. 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.
Iowa has also experienced significant growth in the organic-farming sector, increasing the number of organic farms by 5% in 2016 to a total of 732 organic farms. Additionally, the land used for organic farming also increased to 103,136 organic acres in 2016. The state continues experiencing a growth in the demand for locally sustainably-grown food, with northeast Iowa leading in developing the regional food system.
Many agribusinesses have used agriculture factoring over the years, becoming an established and reliable financing method for the industry. Many companies can benefit from agriculture funding, including farmers, retail food processors, food manufacturing companies, food packaging companies, food distributors, shippers, and suppliers.
The 1st Commercial Credit factoring program will provide immediate capital for your agriculture-related business within just a few days, avoiding having to wait weeks or months to receive payment from your customers. Once your account is approved, we can finance the invoices and advance the funds within 24 hours. Factoring companies that offer financing solutions to farm businesses charge a fee for accelerating this payment process; with 1st Commercial Credit, this fee is low and ranges between 0.69% and 1.59%.
Unlike other financing institutions, AR financing companies working with the produce and agriculture industry make receivable financing easy to get with minimal paperwork. Our decisions are not based on tax returns, credit scores, financials, or even equity to debt ratios. We make decisions primarily on a company's invoicing process and the credit strength of their account debtors (buyers/customers).
Our Company Makes Equipment Financing for Agriculture a Simple Process
Agriculture equipment financing can significantly impact a farming operation's income and cash flow in Iowa. With this type of financing, agribusinesses can purchase the machinery and equipment they need to improve efficiency without worrying about depleting cash reserves and using them to pay for the equipment up front. Business owners will be able to get tractors, calf feeders, combines, manure spreaders, and much more. Another considerable advantage of equipment financing is that farmers can enjoy seasonal payments, a payment structure that allows them to match their monthly equipment payments with incoming cash flow.
When looking for an equipment financing lender, agribusiness owners must find one that offers fast, simple, and competitive solutions. 1st Commercial Credit is an experienced lender in the agriculture sector and provides equipment lending solutions to help you grow your operation. Get new and updated equipment or replace outdated one now! Our agricultural equipment financing can provide the following benefits to your business:
- Affordable, flexible, and simple financing solutions
- Personalized service and support
- Fast application process, credit decisions, and funding
Need Funding For Your Company In Iowa?
Our lending plans assist specialized industries with funding that is often difficult to get through traditional lenders. In addition, our loan and lease programs can be customized to fit your company's needs, and almost any equipment required for your business operation is eligible for financing. Here are some examples of the types of agriculture equipment we can finance for you:
- Farm tractors
- Cranes, bulldozers, dump trucks, and excavators
- Machine tools
- Welding and metalworking tools
- Forklift and warehouse equipment
- Precision tools, grinders, and cutters
- Front-end loaders
- Field harvesters
- Conveyor belts
- Seeders, cultivators, chutes
- Material handling equipment
- Business and operations equipment
1st Commercial Credit keeps the entire financing process simple and offers its clients the fastest funding. Agribusiness owners will enjoy financing flexibility, competitive rates, and customizable terms to propel their businesses to the next level!
About Iowa
Other Industries We Fund in Iowa
Advanced manufacturing is Iowa's most prominent industry bringing around $30 billion each year to the state's economy. More than 6,400 manufacturing establishments employ over 222,500 Iowans and have placed Iowa as a continuous supplier of innovative products in various industry sectors. Some highly specialized sectors surpassing the national trend include industrial metal processing, environment control systems automation, precision machinery, digital and electronic devices, and power generation equipment.
Other key industries include:
- Industrial chemicals
- Construction components
- Commercial and industrial motor vehicles
- Food and food ingredients
- Medical drugs and devices
Iowa sits in the center of a multi-state market of nearly one million businesses and 35 million people. Iowa's central location offers a unique advantage to companies with both international and domestic markets and suppliers. Additionally, Iowa has over 4,105 transportation and warehousing establishments employing 56,775 people.
Iowa continues to be an excellent place to start, relocate or expand a business. It is working closely with companies to create hubs of IT innovation in Iowa's communities and, as a result, attract new investments from IT companies in recent years, including Google, IBM, Facebook, and Microsoft data centers. The technology sector in Iowa currently accounts for $10.696 billion (8.8%) of the state's GDP and employs over 76,000 workers.
Iowa is now home to an increasing number of enterprises taking advantage of the strong communications services offered by Iowa's independent telecommunications companies. These services allow businesses to stay connected from virtually anywhere — even the most remote rural areas.
Factoring Is Popular For Businesses That Provide Services And Products To Medical Providers
Healthcare accounts receivable financing helps companies billing private Medicare, Medicaid, and insurance companies facing cash flow shortages due to slow payments. This financing alternative is commonly used by healthcare providers and medical professionals in all specialties.
One of the main challenges for businesses in the healthcare industry is the long time it takes to get a claim paid. Most of these medical insurance claims can take anywhere from 30-120 days to be paid. This gap before receiving payment can create cash flow issues. This dilemma can affect healthcare businesses of all sizes. However, it significantly affects new companies and those growing at a fast pace.
Healthcare factoring solves this issue by giving you quick payments for your medical claims with simple transactions. You sell your claims to a medical factoring company that will take ownership of them in exchange for a large percentage of the total value of the claim. The transaction settles once the insurance carrier pays the claims in full.
The process works as follows:
- Submitting your company's approved claims to the factoring company
- The factoring company advances up to 90% of the claim
- The claim is paid in 30 to 120 days
- The factoring company gives back the remaining percentage, minus a financing fee
The most valuable benefit of medical receivables factoring is that it fixes cash flow issues created by slow-paying insurance companies. On top of that, medical factoring is a flexible type of financing with a simple online application process. The credit line can adapt to your company's needs and goals and grow or decrease as needed. This flexibility allows business owners to take control of the cash flow situation and financing costs. We also offer medical staffing factoring for businesses needing cash flow solutions for their temp staffing agency.
