For businesses that cannot get an affordable business loan or don’t want to add more debt to their books, invoice factoring may be the best answer. A factoring company in Toledo will provide a working capital solution for small businesses, startups, and established organizations that sell to creditworthy customers.
Big and small businesses in the following industries use factoring as a source of capital: Staffing, Trucking & Freight, Construction, Manufacturing, Distribution, Security Guards, Service Providers, and many others.
Some of the potential reasons for businesses to turn to factoring financing and other loans on invoices forms of funding include needing temporary cash flow for ongoing expenses, inability to qualify for bank loans, or avoiding debt.
Invoice factoring is a form of receivable financing that facilitates the following clients to qualify:
1st Commercial Credit is an experienced accounts receivable factoring company in Ohio offering the best financial solutions and competitive financing rates ranging from 0.69% to 1.59%.
We have a few basic invoice factoring requirements for a business to qualify for funding. These requirements include that your company sells products or services to other companies or the government. Your business should be making sales in extended payment terms (30-90 days). And, most importantly, that your clients are creditworthy.
In Toledo, invoice factoring, or accounts receivable factoring, is an optimal cash flow solution available to most small and medium-sized businesses.
The factoring advance is a percentage of the invoice value that a factoring company will pay you at the time of the receivables sale. This amount will not be the final amount for the purchase of the invoices, as you will get the remaining balance after a factoring fee is deducted when the payments come in from your customers.
The advance percentage can vary depending on the factoring agreement and the factoring company. Still, it will typically range between 75 and 95% of the receivables' value. For example, if the advance percentage is 80% for one invoice of $2,000, you will receive $1600 upfront.
Sell your invoices to 1st Commercial Credit, and you will be forwarded the fast cash in a matter of days. Invoice factoring is not a bank loan. And because it's unlike a bank loan, your creditworthiness does not determine the amount of cash that will be available to you.
Manufacturing factoring is the process of selling a company's outstanding invoices to a factoring company for a cash advance. If your company needs a manufacturing factoring company, 1st Commercial Credit is here to provide factoring for manufacturing businesses in Toledo. The minimum criterion to qualify for our invoice factoring includes filling out a short application form, having invoices for work or orders already satisfied, and having creditworthy customers.
1st Commercial Credit's invoice factoring and accounts receivable lines of credit provide the best flexibility needed to enhance your company's capacity to grow without having to pledge collateral. We base our approval decision on your customer's financial strength, not your company's. Crucial suppliers need to get paid, customers require longer credit terms, and 1st Commercial Credit can help make that happen.
Why is invoice factoring a better option than a traditional bank loan?
New companies, small companies, or startups can qualify.
Cash flow problems affect companies of all sizes. But for smaller and newer companies is even more challenging as these usually don't have the traditional bank loan options available to larger companies. Factoring can be an excellent alternative for companies in this situation.
The educational institutions influence Toledo’s economy in a big and impactful manner.
Toledo became best known for its industrial manufacturing. Chrysler and General Motors had factories in metropolitan Toledo, and automobile manufacturing has been important for many years. The University of Toledo contributes to healthcare, which is the city’s biggest employer.
Toledo’s metro area has four Fortune 500 companies, including Dana Holding Corporation, The Andersons, Owens Corning, and Owens Illinois.
Toledo is famously known as the Glass City because of its extensive history of glass manufacturing. Several of the largest glass companies have their origins in this city. Toledo is the Jeep headquarters and has two production facilities dubbed the Toledo Complex.
With a population of 274,975, Toledo, Ohio, is a major trade center for the Midwest area. The city port is the fifth busiest in the Great Lakes and currently the 54th biggest in the United States.
The city is also home to a few theaters and performing arts institutions, including the Stranahan Theater, the Toledo Repertoire Theatre, and the Ohio Theatre.
Some of Toledo's cultural points of interest include the Peristyle, the Toledo Opera, the Valentine Theatre, the Toledo Zoo, the Toledo Metroparks, and the Imagination Station.