1st Commercial Credit helps San Antonio-based businesses by offering invoice factoring services, short term transactional funding, purchase order finance, and many other forms of cash flow and supply chain finance solutions.
Cash flow can be a major challenge for small and mid-sized San Antonio-based businesses, especially when the company doesn't get paid immediately after delivering their product or service. Accounts receivable factoring is a common type of commercial financing that helps your business access capital right away. If you're looking into loan options, you should understand what accounts receivable financing is, how it works, and what the advantages are.
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Accounts receivable is the amount owed to a business by customers who have not yet paid. Many businesses bill customers by invoice, and there can be a gap of weeks or months between the time the product or service is provided and when the customer pays. Accounts receivable is listed on a company's balance sheet as an asset.
Accounts receivable financing provides capital to a company based on its accounts receivable. This allows companies to get immediate access to the cash they were due to receive from customers in the future. Companies will often struggle while waiting for customer payments while still having to fulfill ongoing costs and taking care of unexpected business expenses.
Companies in San Antonio won’t have to be forced to be in this situation because we can provide financing and the funds today. 1st Commercial Credit has financial resources to help San Antonio-based businesses We help nationwide and foreign businesses finance their transactions with San Antonio buyers and sellers. We offer unique financial solutions to finance the supply chain, including invoice factoring, purchase order financing and accounts payable financing programs.
Some of the reasons businesses choose factoring financing and other alternative forms of funding include needing temporary cash flow for ongoing expenses, the inability to qualify for bank loans, or avoiding debt. 1st Commercial Credit is an experienced accounts receivable financing company in San Antonio, offering the best financial solutions and competitive financing rates ranging from 0.69% to 1.59%.
In summary, invoice factoring makes it easy for the clients in the following situations to qualify:
We are a flexible Texas factoring company when it comes to financing your accounts receivable. Small to large companies can pledge their receivables and obtain a line of credit using their unpaid invoices as collateral in only 3 to 5 working days.
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.
Most loans will amount to 70 to 90 percent of the total value of the invoices. Lenders usually charge 2 to 4 percent of the loan's value in fees each month. The APR for accounts receivable loans can be significantly higher than bank loans, but many small businesses prefer them because they provide such fast access to cash flow.
Selective Receivables Factoring
Selective factoring can be a good option for businesses that need smaller amounts of capital. They can receive the cash flow they need without having to submit all their accounts. It also isn't included on the balance sheet, so it doesn't affect the debt ratio.