If you want a form of financing for a short-term loan for your company that is not a bank, 1st Commercial Credit can help. Many companies in Raleigh find long-term debt financing to be ineffective and costly. The quickest way to access cash upfront is through receivable factoring companies that offers short-term funding. 1st Commercial Credit can assess, approve, and provide financing, all within 3-5 working days.
Evaluating Factoring Companies for your Small Business
Accounts receivable financing is an ideal financial solution to improve cash flow when payments come in 30 days or more. However, it might not be the optimal choice for every type of business. A company that factor is usually the ideal alternative if:
Once you have determined that accounts receivable financing is the way to go for your company, the next step involves evaluating a list of potential factoring companies in Raleigh. The first thing to find out is whether the factoring company specializes in a specific type of industry. If you own a trucking fleet, you want to work with a lender that knows about the trucking business extensively.
Experience is Crucial
Ideally, the lender you select should have a few years of experience with financing receivables for your industry. You can request the company's track record and references to get a good feel for the company's experience working with similar businesses. The references you contact ideally should have an equal sales volume to your company's.
Be Certain That You Understand Contract Terms
You want a factoring company that can provide affordable and competitive rates and contract terms. It is always best to clarify the terms before signing a legally binding agreement. You can also use this opportunity to negotiate and get the best possible rates and terms.
Cash from Financing Receivables is Available in Days, Not Weeks or Months Like with Traditional Banks
It can be quite a time-consuming and challenging task to apply for a business loan at a bank. Usually, the process for a bank loan can take anywhere from several weeks to months to get approved. You often have to begin repayment immediately the following month at an interest rate that may not be affordable. For many companies, obtaining an accounts receivable loan through a factoring company is a more accessible financing alternative.
Getting the process started with 1st Commercial Credit is easy and straightforward. We don't require any other collateral except the receivables and do not base decisions on credit rating. Since we obtain payment directly from your customers, we are more concerned with your client's creditworthiness. In addition to the unpaid invoices for initial setup, we also require proof of business incorporation, an aging report from your accounts receivable department, a customer list, and your purchase orders or rate confirmation agreements.
Receive Your Money Fast and Use It Any Way You Want
After we approve your request for accounts receivable financing, you are free to use the money however you consider appropriate. New businesses often use invoice factoring to increase cash flow to grow the business. Many established companies have seasonal sales and depend on 1st Commercial Credit to get through the slow times. Our financial solutions are more affordable and convenient than anything you could get from a bank.
When you own a temporary staffing company in Raleigh, one of the main problems you have with cash flow is receiving payment for your invoices. Some clients will take weeks or even months to pay for your services. While waiting for the money, it is impossible to accomplish the business goals to grow your business.
Many businesses are looking for ways to avoid taking out a loan from the bank and having to pledge collateral. A better solution for many new companies is working with a specialized lender that offers a form of financing called invoice factoring. When the application is completed, a staffing financing company gives an invoice-holder a large percentage of an unpaid invoice total in advance.
Other benefits of factoring services for temporary staffing agencies are:
Staffing agencies struggling to make large equipment purchases or acquire new clients look for bank loans as their financial solution. Getting a bank loan is a complex process that can take a long time before access to cash is delivered. Factoring companies in North Carolina can solve cash flow issues by providing quick funding.
A staffing company in Raleigh experiencing short-term cash flow gaps is better served by an experienced invoice factoring company like 1st Commercial Credit. Factoring companies in North Carolina that regularly work with staffing agencies understand the unique challenges this industry faces. They provide financing with competitive rates to get the cash staffing agencies need today to pay employees, market their services, and get out of financial struggle fast.
Banks often give preference to companies with physical assets such as real estate, special machinery, or other equipment they can use as collateral. Many staffing agencies don't have significant amounts of property to pledge as collateral besides their unpaid invoices. 1st Commercial Credit works with the assets that your company has to give you the money you need to succeed in the staffing agency business.
Invoice lending companies specialize in providing alternative forms of funding for businesses in Raleigh. As a result, these factoring companies can offer faster response times than conventional banks, which sometimes take weeks to decide. The application for invoice loans involves minimal paperwork and can usually be approved within one or two business days. These alternative lending arrangements allow companies to obtain the materials needed to manufacture their products and make delivery on time and in full.
1st Commercial Credit offers various invoice loans, purchase order financing, and other asset-based financing options to fulfill businesses' needs. For Raleigh manufacturers making a move to new markets and new clients, these loans can establish a solid financial foundation for future growth.