A factoring company converts pending invoices into immediate working capital at a discount. Compared to a traditional bank loan, companies that factor receivables have a quicker approval process and easier access to cash for your New Mexico business. Obtaining a factoring line of credit with a factoring company will be the best financial solution to your cash flow problems.
A factoring company like 1st Commercial Credit specializes in evaluating your company’s accounts receivables and can make a prompt approval decision. The documentation requirements are minimal, and the primary condition is that an applicant has unpaid invoices for services or products that have already been delivered. Approval is likelier if a business meets revenue requirements, has been in operation, and is free of liens or legal issues.
Businesses experience incredible growth after choosing an invoice factoring company as a financial partner. Your New Mexico business will be able to offer better credit terms to customers without facing cash flow issues when choosing a receivables line of credit.
1st Commercial Credit can offer the best invoice factoring in New Mexico for businesses serving many industries. With more than 18 years in the business, we can evaluate your company’s receivables and provide you with funding options.
As a factoring company with extensive experience in all major industries in the state, 1st Commercial Credit can offer a broad selection of financial solutions for your small, medium, and large-sized business in New Mexico.
Even the most successful businesses face cash flow issues and come to us for financial solutions every day. Not all pending invoices will be paid on time, but business operations need to continue running, and financial responsibilities need to be covered. We can help you manage the shortages and swings in cash flow by getting your money now, not waiting 30, 45, or 60 days. You can pay suppliers and continue to offer credit terms to clients, which is a crucial part of any growing business.
At one point or another, companies face cash flow issues because they are currently bringing less money in than they're spending. Especially in the case of newer businesses, cash flow problems can be expected because they haven't built up the reserves needed to cover the receivables not yet paid.
When these businesses don't have a solution in place or a plan for these kinds of situations, cash flow becomes an imminent and dangerous problem as businesses may not be able to afford the assets they need to run a business effectively. Business owners will struggle to fulfill expenses like equipment, software, or even payroll. A healthy and consistent cash flow is vital, and it could even close down a business if it is not managed correctly.
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 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.
In many cases, companies will wait until their cash flow is such a problem that they are forced to turn to bank loans with higher interest rates, costing them much more. As a business owner in this situation, it is crucial to be prepared and be proactive in finding a solution before it becomes an intractable problem that puts your business's future at risk.
On the bright side, invoice factoring services offer credit lines based on a company's outstanding invoices. This line of credit will increase and decrease with your outstanding accounts receivable. For example, if you have an arrangement with a factoring company that will advance 95% on unpaid accounts receivable, your credit line would typically be 95% of your eligible invoices. You use this factoring line by requesting to factor invoices you haven't collected payment for and receive an advance on the number of funds you need in a matter of hours.
1st Commercial Credit understands your business needs and the New Mexico economy. We can provide receivable loans after a short evaluation and approval process. Bank loans are no longer the only solution for businesses needing to solve cash flow problems. We strive to provide the best financial solutions, simple and straightforward application and approval processes, and accessible financing rates.
Is your money tied up in 30 to 90 day terms to your customers?
At 1st Commercial Credit, we can provide your New Mexico business with working capital by using its accounts receivable as collateral. This type of financial service is available to oil and gas exploration service providers and field equipment suppliers such as seismic survey or geophysical operators, manufacturers of drilling fluids, drill rigs, lifts, geophysical prospecting equipment, and many more.
Oilfield service companies in New Mexico have to sell on open credit terms. Due to the nature of long collections in the oil and gas industry, accounts receivable become a tangible asset that is easily tapped into liquid cash flow. Many large companies use this type of financing to increase their cash flow for daily expenses.
The oilfield and gas industry is experiencing tremendous growth all across the nation, fueling great opportunities for all companies associated with this sector. At the same time, this growth also brings financial hardship for some of the smaller providers in the industry.
1st Commercial Credit offers flexible factoring for oil and gas businesses in New Mexico. If your customers are creditworthy, the financing line can grow alongside your business sales.
This type of flexibility is a unique advantage of this type of financing, especially compared to other financial solutions. We offer strategic benefits and quick funding to oilfield service companies experiencing cash flow problems. The cost of factoring receivables is dependant on the following factors:
On average, the percentages for account receivable funding can be anywhere between 1% and 4%. We recommend looking at different factoring companies and requesting quotes. By doing this, you will get a good idea of what you will pay for factoring services, find out what other extra services are offered, and try to get the best invoice factoring fees for your business.
The freight and trucking industry typically struggles with cash flow deficiencies. Thankfully, trucking factoring services keep drivers on the road moving the loads by providing constant cash flow for fuel, repairs, and daily business expenses.
The trucking industry plays a crucial role in the nation's economy. This industry is responsible for moving 70% of all freight in the country, and 80% of US communities depend on trucks to deliver everyday goods, spanning from raw materials, food, medicine, and much more. In summary, without trucking, commerce would be halted, and products would never make it to where they need to go. Cash flow can be a threat for trucking companies.
These companies often struggle with long wait times for payment but still need to cover recurring expenses like gas and payroll. 1st Commercial Credit offers the ideal financial solution to growing your freight business and managing cash flow challenges with freight and trucking factoring. We also have one of the most accessible and competitive trucking factoring rates for this industry.
Occasionally, customers fail or take a long time to pay their invoices. This can affect how a trucking company runs its operations and pays for expenses such as fuel, payroll, repairs, etc.
Truck factoring with 1st Commercial Credit will help resolve this issue with a financial solution involving a simple process: