Bank loans used to be the most common financing option for business owners in Overland Park. However, loans against invoices offer an alternative financing solution with many advantages. With factoring, you sell your unpaid invoices to 1st Commercial Credit who will pay you immediately and collect payment directly from your customers in exchange for a fee for the service.
Many businesses in various industries are using factoring to grow their business successfully. These businesses choose alternative financing instead of traditional bank loans because of several reasons. One of the main disadvantages of bank loans is the long and complicated approval process. Banks are risk-averse and prefer to deal with safe customers. As a result, if you want to get a bank loan, you will most likely need an excellent credit history and documentation that proves a solid financial standing. All in all, it can take several weeks for your credit to be approved.
By contrast, factoring offers faster and more flexible approval terms. It makes sense because a factoring company doesn't get money directly from you but from your clients. And when it comes to speed, factoring can give an approval decision, not in days or weeks but hours. Another critical downside of bank lending is that they add more debt to your balance sheet, affecting your credit rating and resulting in higher interest rates on future loans.
It's also important to mention that late payments can hurt your credit as well. Factoring allows you to avoid all of these problems. When you factor in your receivables, your business doesn't incur debt because you are not withdrawing money from a bank but selling something that you own: your unpaid invoices.
This alternative financing solution is so flexible that it grows with your business and adapts to your needs. If your cash flow suffers because some clients are slow to pay, we can factor in those invoices and immediately improve your cash situation. In summary, if you are a business owner looking for a fast and flexible financing solution that doesn't create debt, we have the best solution. 1st Commercial Credit is devoted to providing a way for businesses with cash flow issues to turn their invoices into immediate cash. We have been financing businesses for almost two decades and work with various industries in Overland Park.
In international trade, the financial service gives cash in advance against accounts receivable from foreign customers. There is a wide range of financing options and risk management services offered by specialized factoring companies to exporters/sellers, particularly those dealing with a stream of low-value, short-term foreign accounts receivable. The exporter transfers title to its foreign account receivable to a factoring company in exchange for cash at a discount.
Imagine you have just signed off on, sealed, and shipped a product to a client overseas. They have been a loyal client for years, but it takes them longer to pay every time you bill them on a 30-day payment term. In the meantime, you still must run business operations, purchase other manufacturing supplies for next month’s order, fund payroll, and take care of other operating expenses. These are difficult to fulfill if you have to wait over two months to get paid for the first job you did for this client.
Many businesses find themselves in this predicament each month, especially in international trade, and use international trade financing companies. 1st Commercial Credit is an international factoring company that provides factoring services that can be used in the trade financing industry for domestic and international sales. Factoring involves a transaction in which a company sells its accounts receivable at a discount to a third-party lender, or factor, for immediate payment instead of waiting 30, 60, or 90 days until payment is due from its customer. This relationship built between a business and the factor can be a very successful and long-sustaining one. If the company wants, they can sell their accounts receivable to their factor every month for as long as they wish.
When it comes to receivable factoring services, there are a few things business owners should keep in mind. Factoring is mainly used in domestic trade but can also be used for international trade. Contact 1st Commercial Credit today for more information on expanding your business with import and export trade finance to a global audience.
1st Commercial Credit provides an immediate funding source for government contracts in Kansas. Government clients can give your business a big push in work and revenue. Still, they can also put you in a challenging cash flow situation. Companies serving these types of clients still need to pay workers and contractors to work and cover all operational costs, including materials and overhead costs. Unfortunately, your business won’t receive any money for the work until months after it has been completed. State, federal, and local government agencies subcontract a significant portion of work to private companies. If you provide a service or product, signing a government contract usually means reliable work and good revenue.
Usually, the government clients are in no hurry to pay invoices and will not pay any advancements, either putting your business in a predicament. Sometimes it can take a long time before receiving payments from government clients. Having the government as a client can be challenging as they are typically demanding clients, and they select a supplier that can accommodate their demands. For companies in this situation, 1st Commercial Credit offers several financing options for financing government receivables. One effective solution is government factoring to get fast cash upfront to pay your employees and vendors.
Factoring government contracts is a financing solution that helps resolve cash flow issues. With factoring, a business owner agrees to sell the unpaid government invoices to a company that factors receivables and, in exchange, obtains funding for those invoices. The factoring company advances a considerable and previously agreed percentage of the invoice balance. The business gets that cash upfront and can use it for whatever is needed.
The factor then becomes responsible for collections and keeps the amount it advanced plus a small processing fee which is the cost of factoring. Another significant advantage of using your unpaid government receivables as collateral for financing is that the application, approval, and funding process takes only a few days. Another advantage is that the factoring company usually will not focus on your personal credit history. Instead, they are focused more on whether your customer will pay on time and their credit history. That means that factoring can still be an option even if your business has low or bad credit.
1st Commercial Credit has experience working with companies working with federal, state, and local government agencies. We understand the payment procedures and how to work with government clients to collect payment. We finance clients in a wide range of industries, including:
1st Commercial can help you solve cash flow issues and handle your government contracts. We have the resources and industry experience necessary to get you the cash you need to continue expanding and acquiring new government projects.
However, those aren't the only advantages you and your clients will experience. We know the transportation and trucking industry is very diverse, and that is why we offer various types of financing options to fulfill the needs of all of our customers. 1st Commercial Credit also provides semi-truck financing for companies looking to get or replace semi-trucks. We work with businesses who have been turned down by banks and other lenders and provide them with a solution to be still able to get the equipment they so desperately need for their business.
If your company needs a financing alternative to bank financing to acquire new or used trucking-related equipment and machinery, 1st Commercial Credit has the solution. We will work closely with your business situation to help structure the best financial solution. Trucking businesses can use the funds provided by equipment financing to obtain the following financed assets:
And much more!
Overland Park offers a great location to live, work, and play with a low crime rate and excellent schools. The city is also home to attractions such as the Arboretum and Botanical Gardens and the Deanna Rose Children’s Farmstead. Overland Park remains a nationally recognized city with a solid corporate presence to develop a community vision and strategic plan that will trace a path of continued success for the next 20 years. The city has incorporated public input from the community to develop goals that support legislative action to create an engaged, welcoming, sustainable city with a strong economy.
Overland Park is located in Johnson County and is the second most populated city in Kansas. This city currently has a population of 197,238, and the service sector makes up most of the local economy. Retail trade, healthcare, professional and technical services, finance and insurance, and IT are the largest industries in Overland Park. Companies with headquarters in the city include Black & Veatch, Yellow Corporation, Waddell & Reed, Ash Grove Cement Company, Ferrellgas, and Compass Minerals. Overland Park has also put a lot of effort into attracting technology companies, and an excellent example of this is Netsmart technologies which relocated its headquarters to this location.