Over 18 Years in Business
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Factoring Rates at 0.69% to 1.59% Click Here For A Quote
Accounts Receivable Factoring 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 to 5 days.
1st Commercial Credit offers a variety of purchase order funding 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.
1st Commercial Credit offers credit facilities for buyers that need to extend payment terms to suppliers. A digital platform was designed for suppliers and buyers to approve and pay invoices online with optional early payment discounts.
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.
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 factoring company with many resources and recognizes that the city of Houston is the top U.S. city in the manufacturing industry. 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 manufactures 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.
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 the most well-known manufacturing companies in Houston are Goya Foods, Mitsubishi Caterpillar Forklift America, Inc, and Toshiba International Corporation.
Over 3,200 Clients Funded
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.
Accounts receivable financing offers an effective solution for covering the cost of fulfilling orders by allowing your business to get revenue upfront without waiting for customers to actually pay. With ordinary forms of financing, you will usually need to have a very good credit score or to even post collateral before receiving a loan. Factoring, on the other hand, 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 requiring you to pay significant financing fees. Instead, you will immediately receive the full value of revenue that is expected in a contract minus the percentage of your contracts that have historically been uncollectible. Factoring companies do, of course, charge fees for their services, but these fees are ordinarily very low relative to more expensive forms of financing.
When you can get revenue from your orders immediately upfront, 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 orders without having to worry 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 necessity of paying for what your customers buy upfront can make expanding your business challenging. 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 revenue immediately so that you do not have to cover fulfillment costs out of your own pocket. Consequently, your business can capitalize gross margins from sales immediately to pay out commissions to sales partners while having more flexibility to serve your customers. For instance, some businesses have been able to leverage factoring strategically to offer products at a cheaper initial price to get customers in the door. You could also use the extra initial funds to invest into building your relationship with new customer accounts to increase your odds of receiving an additional order.
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 having to rely 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.
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 mode of financing since you can usually work out an agreement with factoring companies without having to provide intrusive information about the assets, liabilities, and future plans of your business. Therefore, you should conduct your own research to decide whether factoring could be the right financing vehicle for your business.
Receivable Financing Rates
Financing Rates at 0.69% to 1.59%