The genesis of any company's financial situation is its aging reports that lists the status of outstanding receivables.
One of the ideal ways of financing cash flow is to collect on outstanding invoices on or before their due date. But as long as your company has customers, you will also have past due invoices that can go anywhere from 30 days past due and up. This is the primary reason why your revenue stream is slowed and why your company struggles to find ways to pay its ongoing financial obligations.
The difficult part is that your customers expect you to maintain proper levels of inventory while you are still waiting for them to pay their bills. This creates an "us versus them" scenario with your clients that can be a slippery slope towards business failure. No matter how far behind your past due invoices manage to put your company, you cannot allow that situation to result in animosity towards your client base.
You need your customers to grow your business and you need to maintain a high level of professionalism towards your customers at all times. The solution is to find a way to accept purchase orders from your clients and still maintain the revenue stream you need to be profitable.
When you hear the terms "collateral" and "assets" used in relation to financing a business, the first reaction is to think of bank lending. But a bank will never look at your purchase orders as collateral for the kind of funding you need to keep your company operating and keep your vendors happy. The truth is that legitimate purchase orders that lead to verifiable invoices with creditworthy clients are collateral, but only if you find the right kind of cash flow lender to work with.
The mistake that too many business owners make is that they consider a bank to be the only kind of organization that can do any kind of lending for cash flow. But banks do not have the flexibility or the experience necessary to help turn your outstanding invoices into the kind of immediate cash you need to keep your company open for business. You need to talk to a company that has extensive experience in lending on receivables in a way that turns your outstanding invoices into assets.
1st Commercial Credit looks at your verifiable invoices as collateral and is ready to advance you the cash you need to operate your business at full capacity.
The 1st Commercial Credit method makes certain that your cash is available and that you always have what you need to meet your important and ongoing financial obligations.
1st Commercial Credit has been advancing money against the face value of approved invoices for years. We have extensive experience working with clients in industries such as government contracting, IT support, product distribution, trucking and temporary staffing. We understand your company's economic issues and we have flexible programs that we can customize to your needs. Instead of burying your bottom line in more interest debt, we help create a flexible business line of credit that expands as your invoiced sales increase.
We are a business that lends money based on collateral that your company takes in every single day. Your outstanding invoices to customers who have acceptable credit become assets that you can use to help strengthen your company's financial situation.
But it only works when you allow an experienced lender such as 1st Commercial Credit to help you maximize your invoices and get the cash you need right away.
Since 1st Commercial Credit is not a bank, it is not constricted by the same things that make bank factoring extremely inconvenient. When you try to borrow funds from a bank, or when you try to utilize factoring services from a bank, you have a long application process and the potential for fees that you did not expect. You may also have to produce credit information about your company that would limit the services that a bank would be willing to offer. In the end, utilizing a bank is just not an efficient way to get the most from the purchase orders that your company is collecting.