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.
When your business is short on cash, exploring invoice factoring might be the best financial solution. Factoring allows a company to turn unpaid invoices or accounts receivable into fast available cash.
1st Commercial Credit is an invoice factoring company that will give a certain percentage of the face value of the unpaid invoice. Then, the company's clients pay the factoring company directly. When the factoring company receives those payments, it will deposit the remaining balance minus a small factoring fee, usually a percentage of the invoice's face value.
Factoring and other financial alternatives provided by a receivable factoring company are becoming popular forms of alternative business funding in Worcester. This alternative financing solution has increased in popularity since it has become more challenging for businesses with low or bad credit to use traditional financing options provided by banks.
When Are Businesses in Worcester Turning to Factoring?
Businesses turn to factoring when they need extra working capital, and they have the funds tied to their accounts receivable. As a business that offers payment terms to clients, payments might take 30, 60, or even 90 days to come in. That means after a company invoices a client for their orders, they pay you within 30, 60, or 90 days. Many businesses in Worcester cannot afford to wait that length of time for the money as they still need to cover many business expenses. To access money fast but avoiding taking out a loan, companies will opt to work with a factoring company to turn their accounts receivable into cash.
Invoice factoring is a very convenient and easy form to secure extra money when your business needs it. One of the many advantages of this type of financing involves having the ability to qualify for it even if a business owner has low or nonexistent credit.
Businesses turn to invoice factoring because of these advantages:
1st Commercial Credit provides accounts receivable factoring for staffing agencies in Worcester.
If your company needs a manufacturing factoring company, we can also help and have the experience to offer financing solutions to most industries in Worcester.
Invoice factoring acts as a type of small business loan that uses company receivables as collateral. Invoice factoring is a financial tool businesses can use to get quick cash on outstanding invoices when needed and not have to wait 30 to 90 days. This form of financing involves working with a third-party lender, a factoring company in Worcester in this case, that will buy outstanding accounts receivable. This form of financing is an asset-based lending program where a company's accounts receivable acts as collateral.
Accounts receivable factoring companies in Massachusetts will charge businesses a factoring fee for each transaction. They may buy accounts receivable at discounted rates. The process of invoice factoring is a quick and easy way to access cash in advance. With this type of financing, businesses in Worcester will have money in hand that can be used to pay suppliers early and therefore enjoy early-payment discounts offered.
Invoice factoring gives you more control.
With factoring, you determine which invoices you will sell to the factoring company and when based on their cash flow needs. Thus, you are in complete control and fully aware of the exact cost ahead of time.
Technology is making invoice factoring easier.
Before, copies of invoices needed to be submitted to and verified by the factor, which was a labor-intensive process. Today the increasing use and advancements in technology such as e-payment and e-invoicing make factoring easier and faster. In addition, online portals also make it easy for a factor to access and confirm invoices.
Why Would a Company Use Factoring?
A business in Worcester will use factoring to accelerate access to funds and cash flow, as receiving payment for invoices can sometimes take a long time.
A persistent problem for many businesses is that payment terms for invoices can be between 30 to 90 days or more, leading to cash flow issues. During this period, the gap in cash flow has often been alleviated by either bank overdrafts or traditional business loans. This is where alternative finance such as this type of accounts receivable financing can add value. Unfortunately, many conventional lending options might not be available to businesses with less than perfect credit. On the other hand, invoice factoring can offer a valuable solution for companies in this situation.
1st Commercial Credit is a factoring company offering funding solutions for Worcester companies in the service industry. We provide a wide range of options, including invoice and receivables factoring, accounts receivable financing, and purchase order finance to providers and other companies in the service industry.
We understand the challenges that service companies can face. We also understand the imminent need for a quick and flexible financial solution to avoid interruption of any operational areas. The service industry is very competitive, and that is why we strive to provide a service that will help you improve your cash flow by providing an advance of cash against the value of your accounts receivables. Depending on the industry, we can release up to 95% of the value of an invoice within 24 hours. This means your service business has access to an ongoing supply of capital linked to sales.
As long as you provide professional services to other businesses, you can factor those invoices for immediate cash. 1st Commercial Credit offers receivable factoring for the security guard industry and the following sectors:
1st Commercial Credit is an experienced lender working with the manufacturing industry in Worcester and providing various manufacturing equipment financing solutions for companies just like yours. Our fast equipment financing application and approval processes for the manufacturing businesses distinguish us from our competitors. We finance equipment from $35,000 to $15,000,000, provide consistent and fast funding, accept a wide range of credit scores, and we strive to provide an easy application process.
All manufacturing companies will need some type of manufacturing equipment at one point or another to expand their operations or simply to keep up with the growing demands of the business. Manufacturers face the need to replace old, inefficient equipment or invest in up-to-date machines capable of creating new products, and equipment financing can make this possible. Spreading equipment payments over time will help produce a positive cash flow instead of having to sacrifice and deplete precious business cash reserves. 1st Commercial Credit offers various financing options available to business owners in Worcester looking to finance manufacturing equipment. Our programs include leasing, financing with a loan, or outright buying the manufacturing equipment.
Both leasing and purchase options are available for new or pre-owned equipment giving you the flexibility to find the best machines for your manufacturing business. Replacing worn-out manufacturing equipment can come with a high price tag that can keep you from getting it and, in turn, negatively impact your operation’s efficiency and growth. With our help, you won’t have to worry about making this tough decision because equipment financing with 1st Commercial Credit will get you the equipment you need with a payment plan you can afford today.
Worcester is where innovation clusters are created, attracting young people and families to join the workforce. In addition, Worcester is the second biggest city in the state, and it offers an incredible value proposition to new and expanding businesses.
Worcester is and continues growing.
Many families and young professionals are deciding to move to Worcester, which has contributed to the greater population growth compared to Boston and Massachusetts.
Worcester is Affordable and Cost Competitive.
The real estate and workforce costs in Worcester are lower than Boston on average. In addition, the cost of living is lower in Worcester than in the Boston Region.
Worcester is Accessible.
Worcester is strategically located in the state's center and has easy access to Boston, Hartford, Providence, and Manchester, NH. By air, car, or train, Worcester is easily accessible from all directions. Worcester also has its airport but is also approximately an hour from four major regional airports, including Logan International Airport in Boston, TF Green Airport in Providence, Manchester-Boston Regional Airport, and Bradley Airport in Hartford. Sectors Experiencing Growth in Worcester include Manufacturing, Education and Healthcare, and Professional, Scientific & Technical.
Worcester is a beautiful University City with a fascinating Cathedral. It has an incredible history, exciting architecture, top-class sports teams and venues, an unrivaled selection of high street names, and independent boutiques. It is a great destination to visit with friends and family as the city offers something for everyone.
Due to its location in the center of Massachusetts, Worcester is known as the "Heart of the Commonwealth."
The city is famous for its magnificent Cathedral and the world-renowned Worcester Porcelain, the Worcestershire Sauce, and the most picturesque cricket ground in the country.
1st Commercial Credit has extensive experience providing accounts receivable factoring services to Massachusetts and its cities including: