Factoring invoices has continued gaining popularity as a great alternative to finance companies facing cash flow issues due to slow-paying clients. Factoring provides an advance on these invoices and advances cash flow to operate the business and grow. Factoring can benefit small and medium-sized businesses serving various types of industries in many ways. Like any other type of financing, factoring is not ideal for everyone. Some of the benefits of choosing 1st Commercial Credit include:
1. Immediate cash: The most crucial benefit of factoring is giving your company access to quick cash. This funding should help resolve cash flow shortages and provide resources to pay your expenses and gain new clients.
2. Allows companies to extend payment terms to clients: Most customers insist on paying invoices on terms going from 30 to 90 days. If you cannot facilitate payment terms to clients, your chances of landing these contracts decrease drastically. A company that factors allows you to offer payment terms because you can finance your invoices shortly after creating them if the goods/work have been delivered.
3. We run credit checks of your customers: A significant challenge with offering payment terms is determining a client's creditworthiness. Most factoring agreements include customer credit reviews as part of their solution. This feature allows you to outsource this crucial task to experts.
4. Easier and faster to get than traditional lending: Invoice factoring is easier to get than most financing solutions. The main requirement is that a company has invoices for finished work to be paid by creditworthy customers. In addition, your business must be free of liens and legal issues.
5. The line can increase along with your sales: Lines of credit are tied to your invoice balance. Therefore, they can quickly increase as long as your invoices increase and the credit quality of your clients remains good. This feature makes invoice factoring an ideal solution for companies experiencing rapid growth and needing financing to keep up with it.
6. It uses your invoices as collateral: Traditional solutions, such as bank lines of credit and loans, require substantial assets as collateral. These assets can include real estate, inventory, equipment, and many more. Factoring only takes your accounts receivable as collateral.
7. Allows you to retain equity: Factoring does not require you to give up any company equity. This advantage is crucial because when you give up equity, you surrender a portion of your company and some of your control in the business.
8. Startups and small businesses can qualify: Trying to get a business loan or line of credit is almost impossible for many of these businesses because many lenders rely on sales volume and collateral to make their profits.
Factoring companies in Albuquerque can help give you access to the funds your business needs to grow and continue running. 1st Commercial Credit is an experienced lender that helps businesses secure the working capital they need quickly through invoice lending services. For many companies in specific industries, slow-paying customers can cause drastic cash flow shortages resulting in late payments, inability to fulfill payroll, or making it challenging to purchase new equipment needed to run a business effectively. Our team will take the time to evaluate and understand your needs and find the right financing program to meet your needs.
What Are The Requirements To Receive Funding From 1st Commercial Credit?If you need to improve your business's cash flow and would like to avoid taking on extra debt or pledging collateral assets, receivable funding is the solution. 1st Commercial Credit is an accounts receivable financing company providing solutions and flexible financing. Businesses can use their outstanding invoices as security and turn them into fast cash within 24 hours instead of waiting 30-90 or more days to receive payment from customers. This financing solution will transform your business's financial situation without having to borrow from banks.
Our alternative financing options provide a flexible way to ensure your company always has the cash needed to run operations and grow. If you have invoiced customers and are waiting for payment but do not want to enter into a business loan requiring regular repayments, accounts receivable is a better option to get cash today. With this quick and flexible form of finance, businesses in Albuquerque will meet all of their funding needs, including payroll funding, investments, bills, and expenses.
Typical invoice factoring requirements include:
The oil and gas industry continues experiencing growth in New Mexico. This growth is fueling many opportunities for companies in this sector. However, with rapid growth and success, financial hardship can follow for some of the smaller providers in the industry. Most small businesses have a challenging time qualifying for financing, which can cause them to fail.
Factoring for oilfield companies in Albuquerque is easy and fast with 1st Commercial Credit. Most clients in this industry will pay their invoices in 30 to 90 days. The problem starts when many smaller oilfield service companies don't prepare for this situation, resulting in challenges covering daily business expenses and payroll.
1st Commercial Credit offers flexible invoice loans. If you are working with creditworthy customers, the invoice financing line can grow alongside your company sales. This flexibility is a tremendous advantage of invoice financing, especially when compared to other financial options. We offer benefits to oilfield service companies experiencing cash flow issues and can make quick funding decisions.
Setting up an agriculture factoring account for the produce industry is a simple process for us. Unlike other traditional lenders, we know the unique needs of the agricultural sector. 1st Commercial Credit understands the process, challenges, and opportunities that await your agribusiness and can provide invoice factoring for produce and agriculture distributors in Albuquerque.
Our factoring services will provide immediate cash for your business within just a few days. Your agribusiness will receive quick cash and avoid waiting weeks or months to receive payment from customers. As the agriculture and produce business continues expanding, 1st Commercial Credit can provide the funds today.
Funding is necessary for the agriculture and farming sector to cope with unexpected costs and growth requirements. A factoring lender can structure financing programs and unique financial tools. Our team has account representatives specializing in meeting all PACA’s strict requirements and can answer any questions about the process.
Albuquerque is one of the most culturally rich and diverse cities in the country. Albuquerque’s ethnic tapestry is reflected in its artwork, architecture, cultural centers, and cuisine. This city embodies many customs and traditions which are part of the vibrant daily life in Albuquerque. The Albuquerque Metro area has more than 908,200 residents and is growing steadily at 1 to 2% a year. Even as the largest city in New Mexico, Albuquerque retains its neighborhood feel.
The economic development department of Alburquerque puts enormous effort into recruiting economic-based companies in critical high-tech industries. This city recognizes that scientific progress via tech-based companies is crucial to creating jobs, achieving higher living standards, economic prosperity, industry diversity, and a healthy community. To that end, Albuquerque has launched a robust strategy to strengthen its position as a hub for 5 industries that closely align with the assets in which Albuquerque is already the strongest and most competitive. These sectors are aerospace, film, and digital media, innovative city technologies, bioscience, and directed energy. Albuquerque already has the R&D history, intellectual capital, tech capacity, and workforce needed to drive sustainable long-term growth and future investment for each of these sectors.