1st Commercial Credit funds UK-based businesses by offering ledger factoring services. Additional cash flow solutions include purchase order financing and trade payable finance.
One of the most frustrating situations as a business owner is watching business opportunities pass by and being unable to take advantage of them because of a cash flow shortage. For many growing businesses, the lack of working capital is the main problem. For business owners in London u looking to expand their business or just keep it afloat, things can become challenging when there isn’t sufficient cash to do so. The ability to take on new contracts can be hugely affected when London businesses are forced to halt their operations because of a lack of funds caused by slow-paying customers. This situation is incredibly frustrating when a business has assets and outstanding receivables (unpaid invoices) that cannot be cashed in until customers pay. If this situation is affecting your business growth and daily operations, invoice factoring, and other financial services offered by 1st Commercial Credit could be the financial solution you need.
With 1st Commercial Credit, the initial funding process takes 3-5 business days or less after receiving a signed agreement. After that, you can send the selected invoices to be verified and immediately funded. After the initial funding, your company can receive funds within 24 hours in the future after invoice verification.
Cash flow lenders in London have a quicker and more efficient approval process. The main requirements are that a company has creditworthy customers and invoices for orders that have already been completed.
1st Commercial Credit is an experienced company that factors invoices for businesses in London with cash flow needs. Accounts receivable factoring is the ideal solution for obtaining fast cash. For short-term needs, when money is tight, it is preferable to avoid traditional bank loans. Our factoring loans have helped many companies avoid financial problems, such as not being able to fund payroll. Accounts receivable factoring is an accessible and reliable alternative to conventional lending. Business owners in London must understand the benefits and the costs of factoring to make an informed decision that will be best for their business.
The fees associated with invoice factoring are calculated and based on the following factors:
Our Advance Rates
When a company uses our factoring services, it will typically receive a considerable percentage of the total invoice amount in advance. The remainder is given once your customers pay the invoice in full. Factoring advance rates usually vary depending on the type of industry—industries involving a higher risk for the factor that can expect rates between 60% and 80%. Cash advance percentages for businesses with less risk can range anywhere from 80% to over 90%.
If you don’t solve the persistent cash flow issues within your business, your business will end up missing out on many precious opportunities. Eventually, your business in London will run out of money for expenses and growth opportunities. As a business owner, you will need to consider what would be more costly at the end of the day.
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 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.
Factoring is a method used by businesses to convert sales on credit terms for immediate cash flow.
Factoring helps a business release the money tied up in their sales ledger to fund their business growth and meet daily financial obligations. When your business benefits from a factoring facility, you are not only selling your outstanding invoices to this provider but also permitting him to administer your sales ledger. Through this built-in flexible credit management facility, the factoring provider takes responsibility for sending periodic account statements to your debtors and chasing the outstanding dues. You can choose to opt for either option, recourse or non-recourse. In the former, you would assume the risk of your customer non-payment, while in the case of non-recourse factoring, the factoring provider would assume such risk, subject to certain criteria.
It has been estimated that in the UK, late payments by customers are costing the businesses several billions of pounds each year. Keeping customers in mind, at 1st Commercial Credit, we make factoring and invoice discounting easy to obtain with minimal paperwork. We normally advance 85% of the value of approved invoices, which is more than what the traditional overdraft facility would fetch for you. Our decisions are not based on financials, tax returns, or collateral. We make our decisions primarily on the invoicing process and credit strength of the account debtor (buyer). We specialize in evaluating and providing factoring or invoice discounting in less than a week. We adopt a simple approval process and can expedite initial funding in 3 to 5 working days. Our clients can avail the benefits of our prompt service and begin to use their funds within days of completing an application.