Invoice factoring companies can accommodate Mississippi businesses with seasonal, uneven sales cycles or newer operations with no financial base. Any business can qualify for receivable financing if it generates sales on open credit terms to creditworthy customers. Most business owners coming to us are trying to find a financial solution to keep up with growth or whose situation will not qualify for a traditional loan or credit line.
Every industry is evaluated differently because of different invoicing methods. Not all factoring companies are willing to work with every sector. To qualify for our financing services, your Mississippi business must sell to good creditworthy customers and generate an invoice that can be verified. Receivable financing is available to all industries providing services or delivering products to commercial accounts. To be eligible for funding, the sale must be "final" with no disputes or contingencies and the product/service must have been completely fulfilled/delivered. Many companies choose invoice factoring because they want to speed up their cash flow and eliminate the cash shortages caused by extended payment terms and slow-paying customers. 1st Commercial Credit can provide your business with a competitive advance on your invoices within 24 hours. Our accounts receivable funding programs are designed to fit your business needs and are easy to be approved.
Many businesses think their only options for funding are traditional financing options such as lines of credit or business loans. While these might be feasible for some companies, others need immediate access to working capital and use invoice factoring as their cash-flow solution.
Business loans and lines of credit usually take months to get approved, create debt on your balance sheet, and are restricted. Our invoice factoring programs don't create debt and offer a flexible and straightforward solution. Additionally, the amount of working capital can grow as your business grows.
The companies we work with range from start-ups to well-established companies and, in some cases, bankrupt businesses. We can help businesses experiencing rapid growth but lacking sufficient funds to keep up with it. Other types of businesses benefiting from borrowing against receivables are those with slow-paying customers, companies with maxed-out lines of credit, lousy credit, and companies with tax problems and liens. We offer flexible and customizable programs and have more than 18 years of experience funding various industries.
Mississippi has some industries contributing immensely to the wellbeing of the state's economy. Agriculture, for example, has always been a leading industry for the state. This industry employs around 17.4 percent of the state's workforce. Sanderson Farms, headquartered in Laurel, is the third-largest poultry producer in the United States. Other common agricultural products are soybeans, corn, cotton, and rice.
Oil and gas is another important industry for Mississippi as well as manufacturing. Since the state grows cotton, they manufacture cotton fabric there to increase the value of the product. 1st Commercial Credit provides manufacturing business loans for companies in this industry and can evaluate your business situation today. Food processing is another significant sector experiencing incredible growth and success. The main reason for all these industries to reach success here is Mississippi's excellent business climate all across the state. Other predominant sectors in this state include trade, aerospace, advanced manufacturing, transportation and utilities, education, and health services.
Today, agriculture and forestry is Mississippi's leading industry and the main contributor to the state's economy. Mississippi is the producer of over half of the country's farm-raised catfish and is also a top producer of cotton, pulp, and sweet potatoes. It puts food on American families' tables and provides many job opportunities for the people of Mississippi.
With incredible success comes cash flow challenges when trying to grow an agribusiness. The main reason for cash shortages is slow-paying customers, a common situation in this industry. An agriculture receivable factoring program improves cash flow by providing agriculture-related companies with significantly faster access to revenue owed to them. This solution allows business owners to avoid waiting for the extended payment term before getting their invoices paid. Many companies waiting for 30, 60, or 90 days to be paid can experience a severe strain on the business.
1st Commercial Credit has the solution to keep a healthy and consistent cash flow if customer payment terms range between 30-90 days. During this time, companies still need to fulfill payroll, pay suppliers, cover business expenses, and keep up with growing orders. 1st Commercial Credit is a specialized lending company offering various financial solutions for businesses in a similar case. Business owners can use our money to pay bills and business expenses, buy equipment and supplies, and most importantly, grow their business.
However, a business owner in Mississippi will need to fund all of the above and more responsibilities from profits or working capital without instant access to the money locked up in the accounts receivable. In summary, a business can't grow or take on new projects and opportunities without the cash flow to support them. Running a successful agribusiness in Mississippi will require having the means to resolve recurring cash flow gaps that could happen at any point.
Maintaining a strong and consistent cash flow over time is crucial for any business's success. Luckily, factoring for Mississippi's agriculture and produce industry offers the utmost flexibility for business owners to use it for as long as needed. This alternative also gives you ongoing access to cash flow, like a line of credit, and as your company raises more invoices, the amount of money that can be accessed also increases.
Agriculture, food, and beverage are dominant industries in Mississippi, and the state is a top 20 producer for 15 agricultural commodities. The state placed at the top for U.S aquaculture in 2018 with over $230.7 million in sales. The agriculture sector also employs about 17.4% of Mississippi residents, and in 2020, the industry was evaluated to have a value of $6.22 billion. On top of this, the state's exceptionally fertile soil offers the perfect location to grow crops and agribusinesses. Mississippi's exceptional highway system consists of a comprehensive logistics network and low cost of doing business, allowing agricultural companies to flourish in the Magnolia State. Another plus is that tech and science are helping the agriculture sector with HUMIC–an innovative company that develops new fertilizers to improve produce growth.
A factoring company (or accounts receivable factoring) converts invoices sold on credit terms to immediate working capital at a discount. It has become a simple, fast and easy way to access business cash flow. In comparison with a traditional bank loan, a company that factors receivables has a quicker approval process.
1st Commercial Credit is a factoring receivables company that specializes in evaluating accounts receivable and can make a prompt approval decision. The documentation requirements are not as lengthy, and the main requirement is that an applicant has invoices for work or orders that have already been satisfied. It also helps to have creditworthy customers. As long as a business has been in operation, meets revenue requirements, and is free of liens or legal issues, approval is likelier.
Most clients will pay their invoices in 30, 60, or even 90 days after the delivery. In the meantime, trucking companies still have expenses and responsibilities to continue running the business. Daily and monthly expenses like maintenance, fuel, and insurance are a few of the crucial costs that cannot be paused. This is why our financial services for trucking companies are the financial solution.
A factoring company will buy these unpaid invoices, give you a large percentage of the invoice amount right away, and then collect that same invoice balance from your customer directly. You can modify the factoring service based on your business-specific needs.
Some business owners factor in all of their invoices, and others choose to do only some of them. Factoring is an accessible and reliable solution to take care of slow-paying customers that can be used on an as-needed basis. Freight factoring will put cash in your hands that can be used for payroll, fuel, and other short-term expenses. It also takes off your hands some of the administrative burdens, including collections and credit and background checks. This alternative form of financing has gained so much popularity because it is considerably easier to obtain than a bank loan or a line of credit.
On top of it, an experienced factoring company in Mississippi will offer various financing services for trucking companies. They don’t have a minimum number or dollar amount of invoices to be factored in and gives you the flexibility to choose which ones to factor; they charge flat rates, and there are no cancellation charges or long-term contracts.
1st Commercial Credit provides Transportation Equipment Financing Solutions to businesses in Mississippi looking for vehicles and other transportation-related equipment needs. An equipment lease involves a contractual agreement in which the lessor owns a piece of equipment that can be leased for a specified period in exchange for periodic payments. After both parties agree to the lease terms, the business owners can use the equipment as long as they continue to make payments, but the lessor remains the equipment owner.
Many companies do not have the budget to acquire large and expensive machines, so they decide to lease the equipment for a given time instead.
Some benefits associated with an equipment lease include:
Transportation vendors and buyers can benefit from our equipment financing services. 1st Commercial Credit can provide financing for most vehicles and over-the-road equipment. Using a lease to acquire equipment ensures you have enough funds to continue running and expanding your operation. With 1st Commercial Credit, you will receive approval the same day and funding within 24 hours.