Factoring is a financial cash management technique to obtain immediate funds using a company's unpaid invoices. A financial company (the factor) assumes ownership of these invoices and manages them. 1st Commercial Credit has over 18 years financing businesses in South Carolina and understands the industries fueling this state's economy and how crucial sufficient cash at the right time is to run a company. 1st Commercial Credit evaluates your business situation by analyzing your customers' credit and cash flow needs and working closely to ensure steady growth. The cost of factoring receivables with a payroll funding company generally involves a fee ranging between 1-3% for providing this service.
Even if your company has a bad credit history, it can still be eligible for funding with us. Many companies in South Carolina have used our factoring services over the years. Factoring solutions have become an efficient, simple, and reliable financing method for many business owners. 1st Commercial Credit factoring program will provide the best financial solutions for your 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.
Businesses are always in need of an additional source of cash to run daily operations, fund expansion, invest in marketing, cover payroll, and deal with unexpected expenses. Sometimes, well-established businesses are financially solid and can obtain a bank loan to access funds and improve their cash flow.
Unfortunately, for many other smaller companies in South Carolina, this is not an option. Most of these growing and recent businesses cannot fulfill the demands and qualify for bank loans and other traditional financing methods. Additionally, business owners are looking for cash flow solutions to provide them immediate funding without adding extra debt to their balance sheets. A consistent and reliable cash flow is crucial for any business and accounts receivable funding can provide just that and help you skip the banks. Business owners should do enough research to find which financing solution can provide the best for their business needs and goals.
Fortunately, banks are not the only possible option for business financing. Factoring companies offer complementary services to businesses already factoring receivables with them. In contrast, banks do not provide much additional help or services and add debt and high interests.
To understand better, here are some other disadvantages when obtaining funds from a traditional bank:
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 company that factors and 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.
Agribusinesses in South Carolina can begin factoring in their unpaid agriculture receivables and bring in the cash needed immediately. This type of financing offers many benefits for businesses in this sector, including:
Even if your company has a bad credit history, it can still be eligible for funding with 1st Commercial Credit. Many agriculture-related companies in South Carolina have used agriculture and produce factoring over the years. Agriculture factoring is a simple, efficient, and reliable financing method for agriculturists in South Carolina. Many companies can benefit from our agriculture financing programs, including farmers, packers, processors, shippers (import and export), manufacturers, and distributors.
1st Commercial Credit's agriculture factoring services 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. Many agribusinesses in South Carolina use receivable factoring, helping it become an established and reliable financing method for the industry. Our factoring services will provide fast capital for your agriculture-related business within a few working days, helping you avoid having to wait weeks or months to receive payment from customers. Factoring companies that offer financing solutions to farm businesses charge a fee for accelerating this payment process; with 1st Commercial Credit, this fee is low and competitive, ranging between 0.69% and 1.59%.
Agriculture businesses need the following to begin their factoring journey with us:
When a manufacturing company is growing, there are many considerations and decisions to take, and financing business growth is big. Growth usually requires investment in marketing, infrastructure, expanded inventory, additional personnel, and fixed costs associated with the business. Your South Carolina manufacturing company should have the ability to grow without being forced to turn down contracts or be forced to halt growth because of cash flow insufficiencies. In order to succeed and grow, businesses will have to offer better credit terms to clients, which means payments will take some time to come in. These struggles are part of running a successful business, and your competitors are experiencing it too. The big differentiator between you and them is whether the right financial partner is selected to go through this with you.
Manufacturing companies can start turning their accounts receivable assets into immediate cash for business growth. 1st Commercial Credit offers asset-based lending for South Carolina manufacturers looking for another form of financing for their business. Your production line will no longer have to be interrupted. Companies can use their receivables assets and exchange them for fast cash flow.
There is a small fee associated with invoice factoring. These rates are usually calculated based on the following:
When a lending company factors an invoice, businesses will generally receive a large percentage of that invoice upfront. The remaining amount is given when customers fully pay the invoice. Factoring fees can vary and range anywhere between 1% and 5%. Our financial solutions provide the total flexibility needed to heighten your company's ability to grow without having to pledge collateral. Businesses in South Carolina need additional cash flow to continue running successfully. In addition, key suppliers need to get paid, customers are demanding longer credit terms, and we can help make all that happen.
If you don't take care of a consistent cash flow problem within your company, you will be forced to miss out on many opportunities and risk not making financial obligations. Eventually, your business will end up running out of money. As a business owner, you will need to reevaluate what would cost more at the end of the day. 1st Commercial Credit's financing options can help your business continue to grow while maintaining a healthy cash flow.
In addition to fast cash, you'll see that factoring companies offer more benefits at no extra cost when you start factoring invoices. With our factoring services, your business will have access to many tools to help it prosper and succeed, including admin support, a path to better credit, and financial flexibility. We can also provide purchase order funding for businesses in the manufacturing sector in South Carolina.