Factoring receivables is a financial solution to obtain stable cash, and it involves selling a company's receivables to a financing firm at a discount. Also known as factoring, in this financial transaction, a company sells its accounts receivables to a lending company (a factor) specializing in buying receivables and charging a small factoring fee for this service.
Companies in Oregon choose to factor because they want to receive immediate cash rather than waiting for the entire duration of the payment terms. Factoring allows businesses to improve their cash reserve and fulfill any outstanding obligations immediately. Simply put, factoring helps companies free up working capital tied up in accounts receivable and also frees business owners from the risk of non-payment. Like any other lending company, factoring companies charge a small "factoring fee" for their services. The factoring cost is a percentage of the total amount of the invoices being factored.
The factoring rate companies charge will vary and mainly depends on:
In addition, the rate of financing accounts receivable will also depend on whether it is recourse factoring or non-recourse factoring. Many factoring companies in Oregon will typically charge a lower rate for recourse factoring than for non-recourse factoring. This is because these cash flow lenders need to compensate for the risk associated with non-recourse factoring. With recourse factoring, the company selling its receivables still has some liability to the factoring company if some of the receivables are not collected. In summary, the easier collection will be for the factoring company, the lower the factoring fee.
Keeping up and fulfilling payroll obligations is a significant challenge for many businesses. Payroll funding is a financial tool that allows companies to finance their invoices in order to make payroll each period. When customers are behind on payments, this can threaten your payroll and impact your cash flow management negatively. Unless you have backup source funding, you risk keeping your business's wellbeing.
1st Commercial Credit provides financial services that help small businesses with their cash flow issues. We help companies maintain a consistent and healthy cash flow by purchasing their outstanding invoices (accounts receivables). We advance a high percentage of the unpaid invoices so that companies can take care of their employees and ensure their paychecks come each week. Our specialized staff has helped companies of all sizes in many industries by securing payroll funding through factoring services. If financial issues in your business are preventing you from paying your employees on time each period, a payroll line of credit might be the best solution for your business.
1st Commercial Credit is a payroll funding company with extensive experience financing companies going through cash flow shortages so they can fulfill their payroll obligations. We offer cash advances to companies facing a temporary need. Unlike bank loans, factoring provides competitive and flexible financing rates for companies in Oregon.
Our invoice factoring services will provide payroll funding solutions to free the cash stuck in accounts receivable. We have made the funding process fast and straightforward, and in some cases, businesses can receive an advancement on their invoices within 24 hours after approval allowing them to meet their payroll funding obligations and pay their employees on time.
Payroll funding is also known as payroll financing. It is a financing service crucial to small businesses needing a reliable funding source to make payroll while improving financial stability. We are determined to help you transform your business assets into immediate cash to help your business succeed. Businesses in Oregon using factoring services are more efficient, profitable, and productive as a whole. More importantly, the weekly or monthly stress of making sure your employees are paid will no longer be a problem.
Businesses lacking the necessary funds to cover their payroll can sell their invoices to a factor to receive payroll funding. Payroll funding offered by a factoring company is not a loan, so it doesn't involve repayment or long-term contracts. This financial alternative is a simple sales transaction that helps companies meet their payroll obligations and keeps their businesses running smoothly without the risk of default or negative credit reporting.
Many business owners struggle to grow their businesses because they don't want to risk running out of cash reserves and not have sufficient funds to fund payroll. Payroll financing allows you to use your reserves to expand your operations and staff. Our financing services are fast and use your accounts receivable as an asset. Approval takes place within a few working days, and financing can begin within a couple of hours of receiving your first invoice.
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.
Another option is to use a credit card. But if you don’t have the money to pay off that balance, the fees and interest make it a costly option and one that could ultimately result in losing your business. In addition, it could also damage your credit score, which would make it almost impossible to get funding in the future.
Fortunately, manufacturing invoice factoring is an alternative for these businesses in Oregon. This financial alternative is not a loan, so it does not impact your credit. Instead, factoring is a financial service that allows business owners to leverage tomorrow’s income for the money they need today. Invoice factoring involves selling your due unpaid invoices (also called accounts receivable) to a third-party lender. This third-party firm is called the “factor,” and gives businesses immediate cash in exchange for their invoices and charges a small fee. In a few words, invoice factoring allows companies to receive an advance on the amount they’re owed from their clients. This allows businesses to meet their immediate financial obligations, offering a flexible, low-risk solution for companies with cash-flow issues.
Setting up an accounts receivable line of credit for the agriculture and produce industry is simple. We can finance businesses in Oregon serving a variety of industries. Our financial solutions and funding options can help eliminate cash flow problems quickly. Receivables factoring and purchase order finance are essential tools that agricultural and produce companies need in order to help maintain a solid and consistent cash flow. We service most areas of the produce industry, including distribution, processing, transportation, manufacturing, and wholesale. 1st Commercial Credit has a specialized team in funding solutions for the agricultural and produce industry with comprehensive knowledge of PACA requirements. Funding is available to well-established companies and startups and those companies that have been turned down for financing by the banks.
We can help improve cash flow by providing cash advances against the value of outstanding accounts receivables and purchase orders. This means that companies in Oregon will have access to an ongoing supply of money linked to sales. The funding available will grow along with your business growth.
Factoring is a financial management technique to obtain immediate cash using a company's unpaid invoices. A financial company (the factor) assumes ownership of these invoices and manages them by buying these invoices.
1st Commercial Credit has over 18 years financing the produce industry and understands this business of perishable goods and how vital cash is to run a company and keep it from further losses. We will evaluate your business situation by analyzing customers' credit, cash flow needs and working closely to ensure steady growth is achieved. The following produce companies can qualify for our financing program:
Even if your company has a bad credit history, it is still eligible for funding if the above conditions are met. Many agriculture-related companies in Oregon have used agriculture and produce factoring over the years. Agriculture factoring has become an efficient, simple, and reliable financing method for agriculturists. Many companies can benefit from our agriculture financing programs, including farmers, suppliers, retail food processors, food packaging companies, food manufacturing companies, food distributors, and shippers.
1st Commercial Credit agriculture factoring program will provide the best financial solutions for your produce business within a few days. Once the account is set up and approved, your business will receive the funds in exchange for the invoices within only 24 hours—no more waiting weeks or months for invoices to be paid.