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 3-5 days.Learn more
1st Commercial Credit offers a variety of purchase order financing solutions to meet your trade financing needs. P.O. Funding is suitable for any wholesaler, reseller, importer or any company that buys and resells goods.Learn more
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.
Factoring for manufacturing companies involves selling your company’s outstanding invoices to a factoring company for a fast cash advance. Unlike a loan, invoice factoring for manufacturing will convert your existing receivables into fast cash that can be used to cover all operating expenses. When payments take several weeks or even months to arrive, manufacturing companies in Houston have an increasing difficulty meeting their expenses.
Factoring can provide the working capital your business needs rather than settling for cash flow instability and stunted growth. Working with a manufacturing factoring program is fast and straightforward. 1st Commercial Credit can assess and approve your company for a credit line within a few days and with minimal paperwork. You can qualify to factor in your manufacturing invoices even if your company has low or bad credit or other financial issues. Our funding decision is based on your clients’ creditworthiness, and we offer low, competitive rates that work with your company’s cash flow needs. We are a flexible Texas factoring company when it comes to factoring your receivables. Small, medium and large businesses can pledge their receivables and obtain a line of credit using their unpaid invoices as collateral in only 3 to 5 working days.
Getting the money to finance your business is one of the most significant challenges that you will face as an entrepreneur. In addition to purchasing capital equipment and investing in research and development, you will also have to cover any costs associated with fulfilling orders before receiving revenue from your customers.
Unfortunately, paying for materials, shipping, and labor months before receiving revenue from your customers can be simply unaffordable. If you are unable to cover the cost of new orders, you are limited in how fast your business can grow. As a result, it is crucial to find a flexible channel for financing the cost of fulfilling orders that have already been signed by your customers.
Extending credit terms to customers is a great way to encourage sales and build trust with your customers. But while your business waits for customer payments, you have pressing costs and expenses that will need that cash. Inventory purchases and overhead costs need to be paid, and employees expect their paychecks at the same time every pay period. A safe alternative to bank loans is receivable financing. This financial solution involves selling the value of what your customers owe you before they pay it. 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. While waiting for that payment, a factoring company can advance you that amount and in exchange, keep the invoices and gain the right to collect them when they’re due.
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:
Accounts receivable financing offers an effective solution to cover the costs of running a business that fulfills orders and obtains payment long afterward. This type of financing allows a business to continue taking and delivering orders while waiting for extended payment terms to end. Once an order is delivered, your business can get fast cash without waiting for customers to pay first.
With ordinary forms of financing, you will usually need to have an excellent credit score or even post collateral before receiving a loan. On the other hand, factoring is based on the reality that your business is likely to receive revenue at a specific time that is guaranteed in contracts that you sign with your clients. By looking at historical data, factoring companies are able to determine the percentage of orders that you will be able to collect and the likelihood of your supply chain experiencing interruptions. Consequently, in many cases, factoring can give your business revenue immediately without waiting for payment terms.
When you can get cash from a factoring company for orders that have been verified and delivered, you can immediately begin marketing to new clients. You will not have to wait until you receive revenue before you are able to accept new orders. As a result, your business will be able to grow very quickly because you will be able to finance a high volume of credit term based orders without worrying about not having the funds to purchase materials and other inputs.
Unfortunately, many businesses are held back by worries about dipping too deep into their working capital by taking on new orders. As a result, some businesses neglect to take advantage of opportunities that can be seized from ambitious marketing campaigns or other channels for attracting many clients in a short period of time, such as through trade shows or certain forms of short-term partnerships. When your business leverages factoring, you are able to take on as many orders as your facility can handle without having to incur huge risks.
When you can sell a higher volume of products, you can earn more money over the long term as initial customers return to make additional purchases. The most successful businesses know that convincing customers to make an initial purchase will lead to many more sales in the future. It is not uncommon for businesses to make over 10 times their initial revenue from the lifetime value of retaining a customer. As a result, factoring can be a great way to grow your business because you can attract a higher volume of customers who will return to buy more at a later date.
Although factoring is a very inexpensive way of acquiring capital, there are naturally some financing costs that you will have to pay. However, the cost of factoring is usually significantly less than the gross margin that you will earn from being able to make more sales. By leveraging factoring to widen your customer base, your business will make up for any reduced initial margins when you get more sales in the future.
Businesses ordinarily have to keep a significant amount of working capital on hand to cover the cost of fulfilling an order before revenue is received. Unfortunately, the need to pay for a customer order upfront can make expanding your business challenging as your cash flow reserves will inevitably be affected. As a result, you will only be able to offer new customers special incentives in rare cases when your business has limited alternative opportunities to invest in.
Factoring enables your business to receive cash immediately after delivery of services or products so that you do not have to cover fulfillment costs. Consequently, your business can capitalize gross margins from sales immediately to pay out commissions to sales partners or vendors. For instance, some businesses have leveraged factoring strategically to offer products at a cheaper initial price to get customers in the door.
Another major advantage of factoring is that it allows you to obtain financing without having a perfect credit score. As with individuals, many businesses are held back by having a limited credit history or having concerns about how utilizing certain forms of financing could make borrowing difficult in the future. Factoring provides you with the opportunity to receive funding without needing any credit history.
When you avoid relying on your credit score, you avoid putting dark stains on your credit history that could make it difficult for your business to obtain crucial financing in the future.
A specialized cash flow lender offers many different financing alternatives and can help business owners understand how much more beneficial these are for your business. This lender will also assess your current cash flow situation and advise you appropriately to select the best financial solution that meets your business-specific goals and needs.
Every business is unique, but the vast majority of companies that utilize purchase orders can benefit from using factoring to get money upfront after closing a sale. Factoring is also a relatively simple model of financing since you can usually work out an agreement with factoring companies without having to provide intrusive information about your business’ assets, liabilities, and future plans. the appropriate research needs to be conducted in order to decide whether factoring could be the right financing vehicle for your business.
Factoring is a financing alternative to traditional lending for the oilfield industry with many added benefits. If you operate an oil and gas business, you can use oil and gas factoring to keep your cash flowing. Slow-paying customers and extended payment terms are typical in the oil and gas sectors, making it challenging for oilfield service providers to keep a steady and reliable cash flow. Rather than worrying about insufficient funds to cover business expenses, pay employees, and purchase equipment, turn to invoice factoring to reach and maintain a stable source of cash flow.
1st Commercial Credit’s oil and gas factoring services provide fast financing for companies in this industry by turning receivables into immediate cash. In addition, there is no limit to the amount you can fund with factoring, and you can send us invoices at any time.
700 Milam St Suite 1300
Houston, TX 77002
Email: Houston Office
Call: +1 (281) 645-9915
Directions: Google Maps →
1st Commercial Credit is a company factoring receivables for Texas and various cities including: