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 invoices for work or orders that have already been completed and has creditworthy customers.
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 beneficial 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.
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.
What Is Included With Factoring?
Invoice factoring gives your business immediate access to cash. In addition, factoring companies offer more extra benefits, including:
Administrative Support: 1st Commercial Credit will run back-office support at no extra charge. We also offer background and credit checks for potential clients. We will also make collections calls on your behalf and offer 24/7 online reporting.
A factoring company (or accounts receivable factoring) converts invoices sold on credit terms for 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.
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 offered. But we make our decisions primarily on the invoicing process and credit strength of the account debtor (buyer). We specialize in evaluating and provide factoring or invoice discounting facilities in less than a week. We adopt a simple approval process and we 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.