Invoice factoring is an accessible and reliable cash flow solution for small and medium-sized businesses. Many companies in Jackson have to continue running operations and cover payroll, bills, expenses, and many other financial responsibilities while waiting weeks or months for payment. To know if this type of financing would work for your business, it is vital to understand the financing process and the requirements. A company sells its invoices to a specialized lender like 1st Commercial Credit in exchange for immediate cash with invoice factoring. The factor advances a considerable percentage of the total invoice value in the form of fast cash. Then, when the customer eventually pays for the goods/services they received, the factoring company gives back the remaining balance after keeping a factoring fee. In other words, invoice factoring allows a company to get “quick payment” after they’ve invoiced a customer for a product or service, even if the client has agreed to pay later on.
The process of obtaining financing with a bank or a credit union requires endless paperwork and a lot of collateral. For most small businesses, it might be tough to comply with all the requirements. The good news is that 1st Commercial Credit is willing to work with startups and small companies without asking them for significant payment guarantees, demanding long-term contracts, or outstanding credit scores. Invoice factoring services offer a much easier and flexible financing alternative for small and medium-sized companies in Jackson.
The cash advance and factoring fees will vary depending on the factor, the creditworthiness of your customers, and the length of the commercial relationship. Similarly, the requirements are different from one factoring company to another.
The best thing about working with factoring for Mississippi businesses is that you can immediately begin enjoying the advantages that come with it. Business owners don’t need to wait 30-90 days for payments. Instead, they can receive as much as 96% of their invoice value without adding new debt to the business. 1st Commercial Credit has made factoring a fast and straightforward process. Factoring receivables will increase your working capital, allowing you to cover daily operational expenses and make substantial investments to grow your business.
Some of the extra benefits of factoring include:
Another good thing about this type of alternative financing is the cost of factoring receivables. We offer competitive and accessible financing rates at 0.69% to 1.59% and can evaluate your current situation in no time. Once we have reviewed your cash flow needs, we can structure the best financing arrangements to fit your business needs and goals.
If you own a company that works with the government, you can obtain quick cash by selling them to a factoring company. Cash is essential to any business in Jackson, and financing government receivables offers a debt-free option that ensures you receive it right away. Receivable factoring provides a dependable, low-risk alternative compared to a traditional loan or line of credit, and you won't have to spend weeks applying for it.
Government contracts provide steady and profitable work to contractors in Jackson. These contracts can also be for several months or even years. Having the government as your customer is a massive opportunity for stable business growth. In addition, when you have one government contract, it is easy to get more. Business owners shouldn't have to turn down these opportunities because of financing challenges. Steady cash flow ensures that you can bid on new and more significant projects confidently. As a government contractor, you may be facing similar cash flow issues as businesses in other industries. If you don't want to wait a long time for payment and put your business's future at risk, you may want to consider government contract factoring before experiencing any cash flow issues.
Government factoring makes it possible for startups, small and medium-sized companies to do business with the government. They will receive an advance depending on the value of your contract with a government client, even if you're completing projects upfront. This closes any cash flow gaps between the date when you finish the work and when the government actually pays you for it.
A factoring company like 1st Commercial Credit will take a look at your unpaid invoices and buy invoices at a discounted rate in exchange for fast cash. However, there might be some differences depending on the industry. Manufacturers factor receivables from government contracts all the time as it helps them stay in operation, cover payroll, and invest in growth.
A significant disadvantage of government jobs is that they don't give payment right away. While the government always pays their contractors, they aren't in any hurry to do so. Fortunately, companies don't have to wait several weeks or months for payment. On the other hand, a factoring company will pay you first and then directly collect payment from the government, relieving you from that burden. With invoice factoring, your financing uses your invoices. If you have an invoice for completed work or services, you can factor that invoice and receive upfront payment to continue business operations, invest in equipment, and hire personnel. Factoring works for different projects and industries. Here are a few of the types of industries using invoice factoring to help fund their businesses:
1st Commercial Credit provides simple cash flow solutions to service providers in Jackson. If you are a service provider dealing with slow-paying customers, your cash flow can be negatively affected. Our invoice factoring program can help you resolve these types of financial issues. Many companies benefit from invoice factoring and financing receivables for service providers because they involve a more straightforward application process. Many times, companies in this industry do not have sufficient working capital to fulfill their business responsibilities and can't afford to pay providers promptly. Bank financing may be an option, but these institutions typically have a long list of strict requirements for approval. However, the bank loan option is not possible for businesses just starting up or others going through financial difficulty or lacking adequate collateral. The good news is that factoring uses the invoices in exchange for advancing funds. Once your business is approved, you can qualify to receive a large percentage of your invoice immediately.
Factoring for medical staffing firms is the perfect funding solution to help you secure the funding your agency needs to grow. Payroll is probably the most significant business expense for these firms, and it can be challenging to cover if your employees must be paid weekly, but your clients don’t pay invoices for a couple of weeks or even months. 1st Commercial Credit is dedicated to funding all types of medical staffing agencies through a process known as accounts receivable factoring. Taking advantage of this financing method will help your company grow without compromising your present obligations.
Why Choose Staffing Invoice Factoring With 1stCC?
We have spent over 18 years financing the healthcare sector, so we know the unique challenges those firms face when staffing temporary medical personnel in hospitals, physicians’ offices, nursing homes, medical clinics, and many more.
We understand that well-managed, profitable staffing agencies often experience cash flow difficulties during seasonal and uneven growth patterns or invoice payment term extensions. 1st Commercial Credit is ready to help and provide solutions to firms in these situations.
Jackson is the capital and the most populous city in Mississippi. Jackson is home to several incredible museums about history, civil rights, African-American culture, natural sciences, and art. Families have many options for things to do with the kids in Jackson, including the Jackson Zoo, the Children's Museum, and the Petrified Forest, which offer fun activities. The city also hosts different events, including the Mississippi Blues Marathon, the Greek Fest, the Rhythm and Blues Festival, and the Celtic Fest. Some of the famous attractions to visit in Jackson include The Mississippi Museum of Natural Science, The Mississippi State Capitol and Old Capitol Museum, Mississippi Museum of Art, LeFleur's Bluff State Park, and many more.
Jackson is the perfect location for many key industries and entrepreneurs with innovative ideas. With proximity to Memphis, TN, Birmingham, AL, and Jackson, MS, along with our infrastructure, amenities, and highly educated population, Jackson is thriving with new business growth and exciting projects in the future. Some of the key industries in Jackson include advanced manufacturing, healthcare, information technology, financial services, agribusiness, and hospitality, and tourism.