Oklahoma's economy has not been as well-balanced as the economies of many American states. Oklahoma's economy was once dominated by petroleum and agriculture, but local and state officials' attempts to diversify their economy were successful. Oklahoma now boasts diverse sectors, including telecommunications, food processing, transportation, energy, and aviation.
Setting up an accounts receivable credit line for agribusinesses is a simple process at 1st Commercial Credit. Unlike other banks and financial institutions, we are well familiar with the unique characteristics of the agriculture business.
1st Commercial Credit is staffed with people who understand the process, the obstacles, and the prospects that await your company regardless of the industry. We offer our financial services to many different businesses in a variety of sectors and can assess your situation to find the best financial solution for your particular business needs.
We have plenty of expertise dealing with account debtors such as AT&T, Cox Communications, Comcast, Time Warner, and others. It is critical to understand the payment method to factors to make the funding process go smoothly. For over 18 years, 1st Commercial Credit has provided account receivable-based finance to cable and telecommunications companies all around the country.
It is crucial for business owners to do as much research and due diligence when finding the best financial partner, especially when comparing factoring with bank loans.
One of the critical differentiators between factoring companies and traditional lenders is the extensive service factoring companies provide, including billing, underwriting, collections, account management, and reporting, to mention a few. Moreover, a traditional lender may only issue a line of credit for a lower amount than what a company has in receivables. A factoring company will offer that same company the total amount of the qualifying receivables and increase that limit as the company grows without the need for expensive audits, a lengthy underwriting process, etc.
Additionally, 1st Commercial Credit is a freight and trucking factoring company that serves the whole transportation industry in the United States and Canada. We provide free online credit checks, fuel discounts, fuel advances and accept pictures for funding.
It can become challenging to keep a business running in many cases while waiting long periods for outstanding invoices to be paid before fulfilling other orders. In this situation, purchase order financing is a great financing alternative that can be substantially beneficial to businesses in an industry where orders need to be fulfilled constantly and without interruptions. 1st Commercial Credit knows the importance of working capital when trying to keep up with orders and sales. If your Oklahoma company is experiencing a lack of cash, causing orders to be halted, purchase order financing is the funding solution your business needs.
The purchase order financing process is easy, fast, and straightforward, especially when compared to traditional financing. Let’s imagine you have a client who has put in a large order, but at the moment, you don’t have the money to cover the costs to fulfill the order. P.O. financing is the perfect solution because you can receive a cash advance for goods that have been ordered but have not been yet delivered. This is the most significant difference between invoice factoring and purchase order financing. Distribution businesses in Oklahoma lacking the required working capital to get inventory and complete order can benefit from this funding solution.
Purchase order financing for manufacturers has become very popular for this and other industries. A short-term financing method like PO financing is used to cover the cost of manufacturing or purchase of goods that are often pre-sold to customers using a purchase order. Businesses will send the invoices to their customers, and these will send the payments directly to the financing company. We can also offer international purchase order financing for companies involved in the international trade business.
Companies with creditworthy customers who have large orders to fill can benefit from our P.O. financing program. It is especially advantageous for companies with seasonal sales, unpredictable cash flow, and startups. 1st Commercial Credit has many years of experience financing businesses in Oklahoma and offers government purchase order financing for government contractors.
The typical businesses that benefit from P.O. financing include wholesale distributors, government contracts, industrial, importers, manufacturers, exporters, drop-ship orders, and direct ship orders. Once a business is eligible and qualifies for P.O. financing, the process for purchase order funding looks like this:
Some Key Benefits of P.O. Financing Include:
Ability to take on larger orders — with P.O. financing, your business will be able to accept larger contracts that often require more money upfront. There is no need to turn down potential new business opportunities only because your company can’t afford them. Turning down orders can result in a massive setback for your company’s growth. With PO financing, you will have the capability to purchase the necessary suppliers and cover any additional expenses.
Purchase order financing is NOT a traditional loan — this form of financing is an advancement of working capital that your business would otherwise acquire in the future. Unlike conventional loans, the qualifications for purchase order financing are not as demanding or long. Instead, it is considerably easier to be eligible and qualify to purchase order financing. Decisions are based on the creditworthiness of your client. P.O. financing is also a debt-free form of financing, another big difference when compared to a bank loan.
P.O. financing company will handle collections — your company won’t have to worry about chasing payments from clients because the finance company will do that for you to focus on other crucial aspects of your business.
The ideal solution for startups, small and new businesses — all these companies can be eligible for P.O. financing. Usually, it can be highly challenging for these companies to qualify for other forms of financing or bank loans because of a lack of many years in business. Banks also have a long and strict list of requirements like the track record of success and credit history before approving a candidate.
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 receivables 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.
1st Commercial Credit offers invoice factoring services that allow you to sell your unpaid invoices to us, and we will collect payment directly from your customers when payment terms are exhausted. In most cases, depending on the type of agreement and industry, businesses can receive a cash advance between 70% and 97% of the total invoice value. The remaining percentage is held in a reserve until your customer pays the invoice in full. Once this occurs, the factoring company will deduct a small factoring fee from that reserve and send you the rest. Our invoice factoring rates range from 0.69% to 1.59%.
Small and medium-sized businesses are using factoring as a more beneficial alternative to loans. Instead of working with banks and their extensive and complicated processes, business owners work with a third-party company called a factoring company. Invoice factoring works specifically for businesses issuing invoices with net terms of 30 to 90 days.
In summary, the 5 reasons to factor your invoices are:
The qualifying procedure implies filling out a brief application form, having invoices for work or orders already completed, and having creditworthy clients. Our application process is simple and quick. There are no financial requirements to apply, no upfront or hidden costs, and we make our decision the same day.