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:
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.
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.