As Your Business Grows
We Deliver The FUNDS
We Deliver The FUNDS
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 more1st Commercial Credit funds Canadian based businesses by offering accounts receivable factoring services. Additional cash flow solutions including purchase order financing and trade payable finance. When your Toronto company is in growth mode, you might feel empowered by the exciting changes you're bringing to your organization. However, growing too quickly can be a dangerous situation for a business.
When things fall back into perspective, you might realize that you've hired or spent prematurely, leaving your business in a tough financial position. To prevent your startup from suffering the effects of growing too quickly, preparing and planning can save your business from financial ruin. Once a company is profitable, it is common for the next step to be expanding, and borrowing against receivables can provide the ability to continue growing without emptying your business cash reserve.
The costs of running a successful business can be challenging to manage, especially when a lot of the cash flow reserve has been taken out to improve the business operations. At this point, your business in Toronto may be surviving on credit as you try to grow sales and revenues. As you push for higher sales, monthly expenses will continue accumulating and potentially exceed your business monthly revenues. If your collections are on time, that's not a big deal. However, a cycle of delayed collections or extended payment terms could leave your business in a challenging spot. To keep a healthy cash flow, your business will need to anticipate the cash shortage with a plan that accounts for delays in collecting receivables. Working with a financing company might be the right decision. A factoring company can give you access to immediate cash with a line of credit, solving all of these financial struggles.
A factoring company like 1st Commercial Credit helps companies in Toronto by delivering the funds when they need them the most with accounts receivable loans. Once a customer is set up on a receivable-based financing program, we can offer other financial instruments like supply chain financing, inventory lending, short-term cash advances, and purchase order financing. These types of services could be advantageous to businesses with seasonal sales or other fluctuating capital demands. Our decision-making is within hours when a client requests additional working capital once a factoring line of credit is in place.
If you own a business in Toronto and your sales are growing at a speedy pace, and you're increasing profits each year, your business is undoubtedly headed in the right direction. But even growing, profitable companies can be hit with cash flow issues if their operations, finance, and/or investing activities aren't running efficiently. For instance, if your payables (amounts you owe) are due before your receivables (money from a sale not yet collected) come in, your business will face cash flow problems.
This means you won't be able to pay your bills on time, leading to even bigger problems, like making payroll on time. If you want to improve your cash flow, think about working with experienced cash flow lenders who can provide the working capital your business needs. The cost of factoring receivables varies depending on the type of industry. Still, in general, you will pay a factoring fee of between 1% and 5%, although several factors can all affect the actual rate.
Flexibility is one of the major benefits of factoring. Factoring is a great option for small businesses that frequently get rejected by banks for loans
Small to medium sized businesses do not always have the cash on hand to fulfill orders, so these businesses are sometimes forced to utilize receivable financing as a viable and fast solution. As the company waits to get paid for the products it has shipped in good faith, it continues to need cash to maintain operations and 1st Commercial Credit delivers the funds.
Many businesses will need to find a funding source during their business growth and expansion that provides quick cash and doesn't involve extra debt. Applying for a bank loan is always an option but not accessible for many small businesses and startups. On the other hand, invoice factoring is a financial method that involves selling your accounts receivables to a factoring company in Toronto. This type of financing will aid businesses in experiencing cash flow issues while waiting weeks or months for customer payments on pending invoices. The factoring company will verify the invoices before sending you the cash advance but once verified, the cash will be in your hands in no time. Many companies in various sectors in Toronto use invoice factoring as it is more accessible than a traditional bank loan, and it doesn't require credit checks to qualify.
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.
Banks also have a long list of requirements to qualify, paired with a complicated and time-consuming process. These banks demand that businesses have impeccable credit history and can also ask for business collateral. Moreover, it has become increasingly difficult for some businesses to obtain funding through a traditional financing institution. In this case, Toronto businesses can turn to accounts receivables factoring to find a consistent and reliable funding source and sustain their business. 1st Commercial Credit makes sure your business gets the funds needed as long as you can provide accounts receivables invoices to sell. The funding process with us is fast and straightforward, and a decision can even be made on the same day.
Factoring lenders do not base their funding decision on a business owner's creditworthiness or business financial records. Banks will do an extensive assessment of your financial and credit history before considering your application for a loan.
Banks will also determine loan rates, terms, and approval on your company's financial records. Factoring companies are more focused on your clients' creditworthiness and their ability to pay their invoices, and they will put together a financing plan that fits your company's needs. Our accounts receivable loan rates are low and competitive at 0.69%-1.59%.
Another considerable benefit of factoring invoices is that it is a funding alternative that involves no debt for businesses in Toronto. Often, adding new debt to a small business can be detrimental. Factoring will simplify the process to get the money you need to expand your services and meet operational costs without incurring debt with a bank.
Advantages of factoring with 1stCC
Working with a company that factors receivables in Toronto can provide many advantages to your business. Some of those benefits are:
Let's take a close look at the invoice collection process and try to determine how much of it your company can actually control. Your sales professionals head out into the world and sell your products or services to a target audience. If you do your marketing properly, then you can arm your sales professionals with leads that have a strong chance at turning into paying clients.
You and your accounting group do your due diligence prior to approving each and every new credit account in the hopes that you can establish relationships with customers that do not promise to buy more product than they can actually pay for. The point to credit is to allow customers to buy product now, and then pay for it later. But the unpredictable nature of when customers will actually pay is when problems start to occur.
Since these customers are on credit terms, your company is fronting your customers the money to buy these products. Until your customers actually pay their invoices, your organisation is on the line for the money required to fill orders.
As you can see, Canadian small to medium-sized businesses run into trouble when they allow invoices to go 30, 60, and even 90 days past due. If these Canadian entrepreneurs manage to find a lender that will help fill in cash flow funds while waiting for clients to pay their bills, they will be in a great cash flow position.
1st Commercial Credit is an account receivable factoring organization that removes several of the financial challenges from the invoicing process. We will take your receivables and convert unpaid invoices to cash in your bank account.
Funding receivables is something that we do every day. We can not only help your company meet its financial obligations with domestic transactions, but we also have the resources and expertise to facilitate international business as well. We are a full-service company that can show you how funding accounts receivable programs can help your business to grow.
Toronto is a place of limitless opportunity with a unique history and culture, infused by productivity and growing prosperity for businesses and careers in today's most promising industry sectors.
Bad Credit, Good Credit, Or No Credit At All
Every day, Canadian business owners struggle with decisions that could affect their companies' financial futures. Do you pay that vendor bill this week, or do you make your payroll instead? Most business owners will choose to make payroll, and that will put their vendor invoice into a past due situation. It offers the business owner a chance to see this financial process from the side of the late-paying client and it can also damage the company's credit score. The business owner looks at the stack of his own past due invoices and cannot help to feel frustrated at the position that his own clients have put him in.
1st Commercial Credit is not interested in your company's credit score.
Accounts receivables factoring is something that every company needs to utilize, regardless of their credit status. When we approve an invoice for funding, the approval is based on the financial status of your customer and not your company. We will allow you to use your client base's combined financial strength to your advantage.
With this kind of a program in place, you can pay your vendor bills on time and improve your credit. A start-up can make sure that it has the cash flow it needs to grow and avoid a plummeting credit score. A company with good credit can preserve that credit profile and prevent any kind of challenges from bringing down the company credit score. This is the ideal plan for any company and we do not care what your company credit profile says. All we care about is getting your cash flow moving using your invoiced sales.
Invoice factoring services offer great cash flow solutions to a variety of companies. Businesses that operate in certain industries use receivable factoring more than others. Industires may include staffing agencies trucking companies, and manufacturing companies often rely on invoice factoring to meet cash flow needs.
What makes these and other companies ideal candidates for receivable factoring services? Factoring companies offer invoice factoring to organizations that work on business-to-business models rather than business-to-consumer ones.
1 Yonge Street Suite 1801
Toronto, ON M5E 1W7
Email: Canadian Office
Call: 1 800 876 6071
Directions: Google Maps →
1st Commercial Credit is a company factoring receivables for Texas and various cities including:
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