1st Commercial Credit helps small business owners in Houston, Texas by offering invoice factoring services, short term transactional funding, purchase order finance and many other forms of working capital and supply chain finance solutions.
A big challenge for small businesses in Houston, particularly startups, is having sufficient access to capital. Financing the expansion or launch of a business requires a good amount of money, but it can be extremely challenging for entrepreneurs to find the cash they need in Texas.
Many companies in Houston have trouble getting loans from traditional banks, and those in rural areas have limited options unless they get in a car to travel into the city. Angel investors and venture capitalists can be challenging to find and, if they are willing to invest, often attach undesirable terms to the capital they offer.
On a positive note, factoring companies in Houston can provide financing alternatives to solve all cash flow-related troubles that businesses face today. The major metropolitan areas are experiencing strong growth, which leads to more economic activity and the need for funding alternatives. If your business growth is making you run out of your operating capital, 1st Commercial Credit can help your business and get you back on your feet in no time.
Known as the largest city in the South and ranked the country's fourth-largest city, Houston is synonymous with oil refineries and all that is energy-based. New emerging industries are also in play and 1st Commercial Credit is here to finance the supply chain.
1st Commercial Credit is a company that factors receivables and offers many resources to businesses. We recognize that Houston is the top U.S. city in the manufacturing industry and that companies in this sector are in constant need of financing. There are 6,400 manufacturers in Houston and the combined industrial employment totals more than 230,000 workers. As the 2nd largest metropolitan area in the United States for manufacturing Gross Domestic Product (GDP), Houston's manufacturers produce more than $80 billion worth of products.
There is a great demand for invoice factoring and trade payable financing among the top-tier suppliers. We can set up an account for receivable-based financing within 3 to 5 working days for Houston businesses.
Having more than 200 companies that specialize in aerospace manufacturing and development makes Houston a dominant force in the manufacturing industry. Houston Spaceport is a federally licensed commercial spaceport that collaborates with NASA and specific colleges.
This powerful partnership facilitates working with those who are amongst the best scientific minds in the world. Key college participants include the University of Houston, Texas A&M, and others. Lockheed Martin, The Boeing Company, and Honeywell are just a few of the larger partnering firms in the area.
Subsectors of the manufacturing industry in Houston include:
Some of Houston’s most well-known manufacturing companies are Goya Foods, Mitsubishi Caterpillar Forklift America, Inc, and Toshiba International Corporation.
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.
Imagine you've made the sale, and the customer has taken possession of your service or product, agreeing to pay you for it at an agreed time. Factoring is selling your accounts receivable and not borrowing against them as you would do in accounts receivable financing. By selling your unpaid invoices, you generate cash immediately instead of waiting for your customers to pay you. This can be highly beneficial to your cash flow situation.
Accounts receivable represent the cash of sales that have not yet been collected. If a funding solution is not figured out, the unpaid accounts receivable will leave your business without sufficient cash to pay its bills and cover pressing costs. Accounts receivable also represent an investment. Instead of having your money tied up in accounts receivable, we can give you immediate access to it to pay bills, pay back loans, and expand your business. Our accounts receivable financing rates are competitive at 0.69% to 1.59% for Houston businesses.
Another huge benefit of working with a factoring company is that the factoring company that purchases your receivables takes ownership of those invoices and collects them when they are due. The factoring company also assumes responsibility for all of the costs and the hassle involved with collections.
In summary, the advantages to factoring include: