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 to 5 working days.
1st Commercial Credit provides a variety of purchase order financing solutions to meet your trade financing needs. P.O. financing is suitable for any wholesaler, reseller, importer or any company that purchases and resells goods.
1st Commercial Credit offers simple cash flow and factoring solutions for service providers in Baltimore. If your company provides professional services to slow-paying businesses, your cash flow can be negatively affected. Our invoice factoring program for service providers can resolve this and many other financial issues. Many companies prefer accounts receivables financing because it has a more straightforward application process. Businesses in this sector sometimes may not have enough working capital if they cannot pay providers promptly or have seasonal needs. For many other smaller companies, bank loans are often not an option, as they typically have strict requirements for approval. The good news is that factoring is a great alternative funding option that uses unpaid invoices in exchange for advancing funds. Once your business qualifies, you can get a percentage of the invoice value right away and the remainder when the factor collects.
Our financing involves a simple process:
Many service businesses have to wait 30, 60, or 90 days to collect outstanding invoices. Still, these businesses have many expenses and bills that need to be covered a lot sooner than that. With receivables financing, your business will experience:
A specialized third-party lender can be one of the most valuable additions to your business. If you provide professional services to other companies and have outstanding invoices for those services, you can sell those invoices for quick cash. We can factor in receivables for service providers, including architects, attorneys, marketing firms, consultants, accountants, CPAs, and public relations firms.
Many companies in Baltimore also benefit from our asset-based funding program. We work with distributors, manufacturers, and service companies every day. As a result, it has become a significant source of funding for companies seeking to grow capital. Usually, asset-based lending companies structure their loans with an advance on accounts receivable, a very liquid and desirable asset to lenders. However, this isn't to say that lenders aren't willing to make ambitious advances on other sorts of collateral like accounts receivable, inventory, business equipment, and more.
Invoice financing companies offer various supply chain solutions for businesses in Baltimore looking for alternative forms of financing. Our financing rates and terms are highly competitive and fully customized to your specific needs and goals. In addition, we don't request any financials or upfront fees and have made it simple so that the entire application and funding process takes 3 to 5 days.
Companies in several industries have to offer payment terms of 30, 60, 90 days, or more to customers in order to remain competitive in the marketplace. Often, this is the leading cause of cash flow problems. Not having a reliable source of cash flow will affect your ability to pay suppliers, employees and limit your capacity to make new investments. The good news is that our financial solutions will provide you with a consistent and healthy source of cash flow. Our various financial solutions are designed to help small and midsize businesses in need of working capital.
What Makes 1st Commercial Credit The Best Lending Partner?
1st Commercial Credit offers its services in the US and Canada. These financial solutions include:
Contact an invoice factoring company in Maryland such as 1st Commercial Credit, and learn more about our services and approval processes. We can evaluate your business' situation without commitments in minutes and give you a wide variety of solutions.
A lack of working capital or cash flow shortages are common sources of distress for manufacturing companies. A manufacturing business loan is a necessary and valuable growth tool. It can be used to purchase raw materials, fund employee payroll, add or replace equipment, and even pay daily operating expenses. Accounts receivable financing turns your unpaid invoices into cash and provides you with easy access to working capital. Use it to grow your business, pay immediate business expenses, hire new employees, purchase new equipment, or anything your business needs!
Accounts receivable financing, or factoring, turns your unpaid invoices into cash. The best part is that it is easier to qualify for this alternative type of financing because lenders focus on your customer's ability to pay, not yours. The funding available can go up or down based on your needs and is a great way to manage your receivables. You also experience the utmost flexibility to start and stop on your terms. No need to chase clients for payment, the lenders take care of collections. More business equals more invoices, which means more funding possibilities.
A/R financing gives businesses the ability to ensure growth without losing equity or incurring debt. Having a stable source of working capital is vital to any business. The necessary funds will help pay employees, purchase new equipment, meet seasonal demands, and more. There are many significant differences between receivable financing and a bank loan. For example, with bank financing, a line of credit is typically based on assets, equity, profitability, cash flow, and liquidity, thereby limiting the amount of funding. A/R financing focuses more on your customers' credit strength, not your company's. Under an A/R arrangement, available funding is limited only by the number of receivables, which allows it to meet operating demand and provide for future expansion.
Why Should Businesses in Baltimore Use Receivable Financing?
A/R Financing Process
Step 1. Your company sells a product or service and submits an invoice to 1stCC.
Step 2. We verify the invoice and advance 80-90% of the value of the invoice in 24 hours or less.
Step 3. Your customer sends the invoice payments directly to 1stCC.
Step 4. You get the remainder of the invoice when payments are received, minus the original advance and fee.
1st Commercial Credit also provides asset-based lending, where business owners can use their own assets as collateral instead of personal assets or cash flow projections. This solution offers working capital for companies that may be growing quickly, are highly leveraged, or need more capital than their current lender is willing to offer. It is a simple source of financing that provides a line of credit based on your assets. The assets that can serve as collateral for the loan can be your business receivables, inventory, and equipment.
Asset-based lines of credit offer working capital for companies in many different situations and with various financial needs. Sometimes a company just needs a line of credit to fulfill a big order or get over financial trouble on the road. Whatever the reason, manufacturers, distributors, service companies, and more find this financing works well for their business needs, whether they're needed for a one-time contract, seasonal demands, or the ups and downs of a business cycle.
Almost any company can use asset-based lending as long as they can use their assets as collateral. It allows business owners to request cash advances against eligible collateral and repay the money borrowed over the loan term. Asset-based lending is not just for companies with irregular cash flow. It offers another avenue for companies that may be growing or need access to working capital sooner than what other traditional forms of financing can provide. It also serves as a powerful solution to cover short and long-term cash needs.
Acceptable collateral for asset-based lending includes:
Industries Taking Advantage of ABL's:
The staffing industry utilizes payroll funding for staffing agencies to ensure they have sufficient funds to pay their employees on time each period. This alternative financing method helps alleviate cash flow issues regardless of the length of the payment terms given to customers. Temporary staffing companies use factoring to turn their outstanding invoices into cash by using invoice factoring companies. It works by submitting invoices to the factoring company at the beginning of a payroll week for employees. The factor verifies the work has been completed through timecards or other methods, and then the factoring company advances funds based on the receivables.
Typically a temp staffing firm will submit their invoices and timecards from the prior week to the staffing factoring company for funding. Then, the staffing factoring company will fund 85%-95% of the value of those invoices to the temp staffing agency. This often allows the staffing company access to funds the same day invoices are submitted to the factoring company, allowing access to immediate cash flow as needed. Once the customer pays the invoice, the staffing company will get the remainder of the invoice minus a small fee charged by the factor for providing the service. These factoring fees vary from lender to lender and are based on how long it takes your customer to pay. Typical fees range from 1% to 3%, depending on several factors. Qualifying for staffing factoring is quite fast and straightforward. The two main things a factoring company wants to see when setting up an account for a new client are that the invoices are good and the company’s customers can pay their invoices. The factoring companies will run credit checks to make sure a company looking to factor invoices has creditworthy customers. Staffing companies make great factoring candidates as they typically have signed time cards and invoices, proving that the work has been done.
Our staffing factoring programs offer:
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