1st Commercial Credit’s account receivable factoring offers a solution that allows businesses to turn outstanding invoices into immediate working capital. Instead of waiting weeks or months for invoice payments, receivables factoring allows business owners to obtain an advance on unpaid invoices and can use that cash for pressing business needs and expenses without having to wait a long time to get paid. An invoice loan is ideal for Minneapolis businesses with long net terms and ongoing operational costs or unexpected expenses halting a company’s growth. Minneapolis businesses can begin factoring their invoices as soon as they provide services or goods to creditworthy customers.
Once the service is delivered, businesses take the following steps:
1st Commercial Credit is an invoice factoring company in Minnesota offering AR financing/factoring. This financial solution is ideal for business owners who typically have many unpaid invoices in their hands, need funds quickly, and are waiting for payment from customers.
The funds from receivable factoring can be used to access cash liquidity with no added debt, fuel growth opportunities, solve short-term capital issues, and maintain inventory and materials.
Factoring companies are more focused on the creditworthiness of a client’s customers and not just on the strength of the client itself. Because of this, even when a company has a bad year, a receivables financing company can continue to work with them and be a reliable source of capital.
Accounts receivable factoring brings many benefits and advantages to Minneapolis businesses, including:
Helps Build Credit Profile: Factoring helps businesses build (or rebuild) a good business credit history, especially newly established ones. If your business maintains a solid repayment record with your factoring company, they can report it to a credit agency, which will help improve your business credit score.
Factoring Can Help Companies Survive A Downturn: Businesses go through cycles, and even great businesses have good and bad years. This can be due to a serious economic crisis, a downturn in an industry, or an issue unique to a particular business.
Factoring Allows Businesses To Take On Opportunities: The greater access to cash that a factoring company provides can allow a business to take advantage of opportunities that it would have otherwise missed and ultimately be more profitable.
Setting up an accounts receivable line of credit for the produce industry is a simple process for us. Unlike other financial lenders, we know the unique characteristics of the agricultural sector in Minneapolis. The staff at 1st Commercial Credit is very familiar with the process, challenges, and opportunities that await your business.
Invoice factoring and financing for manufacturers use a company's outstanding invoices. Money is tied to unpaid invoices, and businesses can't use it to cover daily business expenses. Accounts receivable represent a line of credit extended by a factoring company and is for those companies that must accommodate and sell to their customers on credit terms.
This means companies will deliver the goods and services immediately, send an invoice, then get paid a few weeks or months later. The issue comes when a business has a lot of clients on extended payment terms.
Problems with cash flow can prevent manufacturing companies from making necessary upgrades, such as hiring experienced professionals or purchasing equipment. Manufacturing financing can help resolve these problems. For any manufacturing business, completing projects on time and meeting the increasing demand is vital. Still, for many companies, cash flow problems can sometimes make it challenging to take care of some essential financial responsibilities. 1st Commercial Credit also provides other types of financial services for manufacturing firms, including purchase order financing.
Manufacturing financing can help your business:
Manufacturing factoring is a better financial solution, especially when compared to a traditional bank loan. Business bank loans have strict requirements for businesses. These requirements usually come with a complicated and time-consuming process.
Banks look for an almost perfect personal credit and also ask for collateral. Even if a company qualifies and meets all the requirements, the final approval and access to cash can still take a few weeks or even months, leaving businesses to struggle on their own. We accommodate our financing services to different types of manufacturing companies, including automotive manufacturing.
Minneapolis manufacturers are known globally for high quality and innovation. From high-tech electronics to high-end food products and everything in between, Minnesota is a robust manufacturing hub. We have an educated and skilled workforce, reliable infrastructure, affordable, dependable utilities, and the business expertise to enable manufacturers of all sizes to thrive. Minnesota has been a long-time leader in medical devices and is involved in all health research and development areas.
Some of these sectors include personalized medicine, proteomics, bioinformatics, regenerative medicine, microbiome, pharmacogenomics, stem cell research, telemedicine, 3-D printed devices, and many more. This city also has many creative experts in developing the software, hardware, and networks needed to do business. Some other sectors thriving in Minnesota include banking, insurance services, accounting and distribution, and logistics. Food production and agriculture are also significant contributors to the economy.
Minneapolis offers good schools, low crime, a strong economy, high homeownership rates, abundant natural resources, and high civic engagement. Many reasons make Minnesota a perfect place to live and work and consistently ranks among the top states in quality of life. Minneapolis is the city with the highest population in the state and is known for its high-rise office buildings and vibrant nightlife. Minnesota is home to the Twin Cities, Minneapolis, and Saint Paul. Minneapolis is home to multiple Fortune 500 companies, including General Mills, Best Buy, Target, and Land ‘o Lakes.