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.
With 1st Commercial Credit, the initial funding takes between 3-5 business days after we receive your signed agreement. After that, you can send some invoices to be funded with the signed contract to expedite your funding. After the initial funding, your company can receive funds within 24 hours after invoice verification.
A factoring company in Springfield has a quicker and more efficient approval process. The main requirement is that a company has invoices for work or orders that have already been satisfied. It is also crucial to also have creditworthy customers. If a business has been in operation, meets revenue requirements, and is free of liens or legal issues, approval is highly likely.
1st Commercial Credit has very low rates between 0.69% to 4%. Accounts receivable financing is the perfect solution for obtaining fast cash. For short-term needs, when cash is tight, it is beneficial for avoiding standard loans. Factoring has helped many companies avoid financial problems, such as not being able to fund payroll.
Accounts receivable factoring is a reliable and accessible alternative to conventional lending. However, business owners in Springfield must understand the benefits as well as the costs of factoring.
How Much Does It Cost To Factor Receivables?
There are fees associated with invoice factoring.
We calculate our factoring rates based on the following factors:
Average factoring percentages can be anywhere between 1% and 5%.
Our Advance Rates
When 1st Commercial Credit factors invoices, a company will typically receive a large percentage of the invoice in advance. The remainder is given when your customers pay the invoice in full.
Factoring advance rates usually vary by industry. Industries that are riskier to fund can expect rates between 60% and 80%. On the other hand, cash advance percentages for staffing and general businesses can be anywhere from 80% to over 90%. The transportation industry has the highest advance rates ranging from 92% to 97%.
If you don’t solve a persistent cash flow problem within your business, you will miss out on vendor discounts, have delinquent payables, and late payroll for your employees. Eventually, your company will run out of money for business expenses and growth opportunities. As a business owner, you will need to evaluate what would be more costly at the end of the day.
The factoring company will run critical back-office functions at no extra charge. We will also do background and credit checks for potential clients. 1st Commercial Credit will also make collections calls on your behalf and offer 24/7 online reporting.
What Is Included In The Cost of Factoring?
Invoice factoring costs include immediate access to fast cash. In addition, when you start factoring invoices, you’ll see that factoring companies offer more extra benefits.
A Way to Have Better Credit
Factoring invoices is not a loan, so it will not add debt to your balance sheet. However, suppose your company has low or not yet established credit. In that case, you can use factoring to pay down your other outstanding expenses and obtain a strong credit score.
Invoice factoring will give you access to the cash you need whenever you need it. Your funding potential is only limited by your sales and can grow as your company grows.
1st Commercial Credit provides financing for manufacturing businesses experiencing growing orders and the inability to keep up with the current working capital. Factoring for the manufacturing industry in Springfield involves selling a company's outstanding invoices to a factoring company for cash in advance. The money can be used to cover your operational business expenses.
If your Springfield company needs a manufacturing factoring company, 1st Commercial Credit is the answer and can offer accounts receivable loans. To qualify for financing, businesses need to fill out a short application form, have invoices for work or orders already satisfied, and have creditworthy customers.
Manufacturing companies in Springfield are choosing 1st Commercial Credit because we offer invoice factoring and financing for manufacturers. Our process is fast and straightforward. No financials are required to apply, no upfront or hidden fees, and we make same-day decisions.
Our invoice factoring and accounts receivable lines of credit provide the total flexibility needed to heighten your company's ability to expand without having to pledge collateral. Manufacturers and importers in Springfield need more cash flow to run their businesses successfully. In addition, crucial suppliers need to get paid, customers require longer credit terms, and 1st Commercial Credit can help make that happen.
Our supply chain finance solutions offer Springfield manufacturers the highest advance rate against the face value of unpaid receivables. Once established with our receivable-based credit line, we can offer ancillary financial services to companies. These services include trade payable financing to suppliers, custom purchase order financing, non-audited inventory finance, and international invoice factoring.
In addition, 1st Commercial Credit provides financing for manufacturing businesses in Springfield. Extra benefits of invoice factoring services include: Cash Flow, Credit Control, Financing, Qualification, Restrictions.
1st Commercial Credit Import & Export International Trade Finance
1st Commercial Credit is helping companies in Springfield maintain growth in sales by providing flexible export finance. To remain competitive in the current global economy, U.S. companies need to offer better financing terms to international customers.
Our non-recourse international receivable finance program allows manufacturers and exporters to enhance their sales efforts and successfully compete in the international marketplace.
Exporting companies, manufacturers, distributors, and service providers turn to 1st Commercial Credit for their foreign trade financial needs. In addition to receivable finance, we can offer trade finance, purchase order finance, letters of credit, and credit insurance.
Springfield is close to New York City and Boston, making it an ideal location for distribution. This sector plays a significant role in its economy. Springfield's top five industries are Education and Health Services, Trade and Transportation, Manufacturing, Tourism and Hospitality, and Professional & Business Services. In addition, Springfield has one of America's top emerging multicultural markets.
There are 25 universities and colleges within the Springfield area. Some of these institutions include several of America's most prestigious liberal arts colleges and universities. The city also has multiple highly regarded hospitals. Hartford–Springfield has also become home to various biotech firms and high-speed computing centers.
The business community in the city continues to prosper. Small businesses find Springfield to be a great place for a startup, and at the same time, it is also home to companies known worldwide. For example, MassMutual Financial Group is a Fortune 100 company that is headquartered in Springfield and employs 3,800 people in Springfield.
Other companies in Springfield include Big Y Foods, Smith & Wesson, Merriam-Webster, Liberty Mutual, Performance Food Group, and Peter Pan Bus Lines. In addition, Baystate Health, Mercy Medical Center, and Shriners Hospital are major healthcare providers and make the city the place in Western Massachusetts for top-notch healthcare.
Springfield is currently the 3rd largest city in Massachusetts and has many attributes. It is also known as the "City of Firsts," a nickname earned through a history of innovation, including America's first Armory and military arsenal and the first American-made automobile. However, Springfield may be best known for two other innovations - the birthplace of basketball and Theodor Geisel, better known as "Dr. Seuss."
Springfield's economy is growing, businesses are flourishing, and public spaces are becoming more vibrant every day. The ability for residents and visitors to walk or bike around the city with ease and comfort is essential in this resurgence and critical for promoting a healthy and safe community.
Many things make this city a great place to live and work. In addition, Springfield is a place with history and an exciting future.