The vast majority of business owners find the benefits and convenience of working capital funding far more significant than those of traditional bank loans or lines of credit. Although there is a fee associated with factoring loans, it can be cheaper than a bank line of credit or loan in the long run, and it is also easier to obtain. Especially in today's economies, many businesses of various sizes in Maine find it quite challenging to gain funding through banks. Banks are usually hesitant to approve new business ventures for financing services. Even businesses with proven good track records must show reports of high profitability levels to receive working capital loans from banks.
Over the past few years, a significant source of working capital for small businesses in Maine has been credit cards. Personal and company or corporate cards have often served as financial support for ongoing business financing needs. However, with today's limitations on lending policies, this practice is no longer possible. In addition, credit card companies that still allow this type of continuous charging now make it much more expensive to the cardholder. As a result, many business owners in Maine who once relied on charge cards to supply a constant flow of working capital are now making good use of accounts receivable factoring or working capital funding.
As businesses in Maine experience growth, they will need extra cash flow at some point. A good cash flow is indispensable for payroll, expansion, marketing, and other business expenses. For some companies, traditional bank loans are just not an option. Companies in Maine looking for short-term flexible funding or avoiding adding debt to their books might want to stay away from bank loans.
Financing accounts receivable is a cash flow solution helping companies improve cash flow by putting the cash tied to unpaid receivables to work. Receivable financing takes unpaid invoices as collateral that can be sold to factoring companies. With this alternative solution, you will receive quick cash in advance with each qualifying invoice. The amount of funding available can grow along with your business sales.
It's common for banks to deny business owners looking for financing, especially if it's a new or emerging business. On the other hand, factoring companies base approval on your clients' credit and not your company, as the clients will be the ones paying the invoice. Factoring is an excellent solution for businesses in Maine with lousy credit or no credit at all. Another extra benefit of factoring is that it can help you improve your credit score and obtain financial stability.
1st Commercial Credit is a specialized lending company funding many industries in Maine and is considered one of the best factoring companies in the nation. We are primarily known because we take the time to evaluate your company's receivables and find a funding program that will help you meet all your business-specific goals and needs.
Conventional bank loans are typically strict about their process. Banks will lend businesses a certain amount of money, which has to be paid back over a certain period and comes with high interests. Obtaining the extra cash with bank financing also means adding extra debt to your business. With factoring, you do not acquire any more debt because you're selling a valuable asset. Another plus of factoring is that companies are not locked into long-term contracts, and the terms are favorable and flexible. Receivable financial solutions allow businesses to yield unlimited growth for companies in Maine, including background and credit checking and collection services, same-day funding, and unlimited funding potential.
There are multiple benefits associated with factoring that no bank loan can offer. Approval decisions are based on your customers' credit history and not on your company's. Additionally, the approval process for banks is lengthy and time-consuming, making the whole process can take a few weeks or months and is based on your company's credit history. 1st Commercial Credit provides invoice factoring services for all businesses in many industries, and we also offer other financial services like purchase order finance.
Use your accounts receivable to borrow money and keep your cash flow moving with 1st Commercial Credit's accounts receivable financing program. With this financial solution, we will give you access to that cash right away every time you invoice a customer. In a perfect world, you would get paid instantly once you send an invoice, and your cash flow would be smooth and consistent.
Unfortunately, that isn't how it works, but we can help you have it that way. We can help you get there. With accounts receivable loans, you get paid faster after you submit an invoice. Our accounts receivable lending service offers a flexible source of funds for businesses in Maine. We specialize in financing the growth of service providers, distributors, manufacturers, transportation companies, and exporters. We also provide import-export trade finance for companies in this industry.
Import-export companies in Maine can sometimes experience severe cash flow shortages due to delays in payment by clients. Maintaining sufficient cash reserves to maintain supply chain agreements and ensure a steady flow of products for sale or delivery can massively help these international resellers. For many businesses in Maine, accounts receivable lending arrangements are ideal for providing funding during payment gaps.
Additionally, loans on A/R are a great financing alternative for import-export firms that occasionally experience cash flow difficulties in their ongoing operations. 1st Commercial Credit is a company that factors and specializes in lending on accounts receivable and can advance the funds right away. Because of our expertise and knowledge in various industries, we can provide higher advance rates with competitive fees. In the past, businesses only used banks for all of their financial needs.
As the economy changes, it has become evident that businesses need to have more than one way to meet their borrowing requirements. Bank loans work by putting the risk on business owners and giving money in exchange for property collateral. Conversely, a better alternative is AR loans because it allows you to borrow money on your receivables.
When a business owner has several invoices that have gone unpaid for a long time, you may be losing money in multiple ways. For example, being unable to pay for other bills may incur late fees. In many cases, sometimes it is better to pay a small percentage of your invoice in order to be able to have sufficient cash to fulfill other responsibilities that, if not paid on time, can cause you to pay larger amounts later on. This principle makes factoring companies appealing and a better financial solution for many small and medium-sized businesses. Experienced factoring companies, like 1st Commercial Credit also offer inventory lending for manufacturing and distribution companies in Maine.
Working with a factoring company will open many doors to possibilities that were maybe not achievable in the past. Having recurring cash flow issues can prevent businesses from growing and even from running their daily operations. The owners of these companies will also experience a lot of stress when they figure out there's an imminent need for financing.
Still, banks and other lending institutions might reject them, creating an even worse situation for these businesses. 1st Commercial Credit is dedicated to providing the funds your business needs right away and, after a short evaluation, can give a decision with various financial options. We do not have a long list of requirements and work with businesses in many different industries. Contact us today and let us help you resolve your cash flow issues.
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 receivables 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.
A bank loan is a typical way of acquiring the cash needed to purchase critical equipment, machinery, and tools. However, business owners are shifting the way to obtain these essential items.
Here are some main differences when comparing an equipment lease vs a bank loan:
When it’s time to purchase new or used business equipment, contact 1st Commercial Credit to receive the best financing plan for your equipment.
Is medical factoring good for your Main healthcare-related business? This is a common question that many business owners in this industry might be asking themselves. Here we can explain how medical factoring works, who can benefit from it, and why it is good to pair up with an experienced factoring company for this type of financing.
It is common for many healthcare companies to underestimate the amount of cash coming in needed to effectively operate their businesses, fulfill payroll, and cover unexpected costs. The gap from collecting payment on patient services performed is lengthy and considerable. Even if you have a steady volume of patients, managing business cash flow can be challenging. Despite having a complete schedule and many patients, medical practices can struggle financially due to slow-paying clients such as Medicare and insurance companies. These payer groups and third-party insurance groups usually take a long time to pay healthcare providers. Medical factoring can help companies take control of their cash flow situation. Physician groups will have little leverage when waiting for Medicare or HMO payments without an alternative funding solution.
The healthcare industry is known for having an "old-school" billing and payment system. With the added challenges of insurance and layers of bureaucracies, medical bills could take weeks or even months before being paid. Even though it is common for medical companies to deal with slow-paying customers, if too many unpaid invoices accumulate, it can negatively impact the businesses and restrict their growth. Because of this, medical companies can benefit from healthcare factoring.
Healthcare factoring is a financing solution, specifically for companies in the medical industry struggling with cash flow shortages due to unpaid invoices with net terms between 30 to 120 days or longer. With healthcare factoring, medical businesses can continue to take care of patients without worrying about insufficient cash. There are two main types of medical companies benefiting from medical factoring: providers and vendors.
Vendors are medical companies that sell medical services or goods, such as equipment, medical staffing, transcriptions, or transportation services. Providers can be individuals or institutions providing health care services, such as physicians or dentists. Typically, providers bill third-party payers such as Medicare, Medicaid, and insurance companies. Healthcare factoring is ideal for both medical companies because these businesses work with creditworthy clients but slow-payers. We can also provide medical staffing factoring for staffing firms serving the healthcare industry.