Accounts receivable financing is used by businesses to convert sales on credit terms for immediate cash flow. 1st Commercial Credit adopts a quick and simple approval process and expedites initial funding in 3 to 5 working days.
1st Commercial Credit provides a variety of purchase order financing solutions to meet your trade financing needs. P.O. financing is suitable for any wholesaler, reseller, importer or any company that purchases and resells goods.
Invoice factoring is a form of invoice finance where a company sells some or all of its outstanding invoices to a factoring company in Tennessee to improve its cash flow. The factoring company will factor receivables, pay for most of the invoice amount right away, and then collect payment directly from your customers. Invoice factoring is a business-minded alternative to traditional lending methods that gives your company immediate access to the working capital you need, without long-term contracts or any debt to pay back.
When your business sells its unpaid invoices to the accounts receivable financing company, your business will receive an advance on the invoice of up to 95% of the value within 24 hours.1st Commercial Credit is an experienced factoring company providing funding services to businesses in Tennessee and has one of the most efficient approval and funding processes.
Invoice factoring helps businesses release the cash tied to outstanding invoices so you can use it to:
Invoice factoring is designed to help provide fast cash for those businesses that tend to experience longer payment terms with invoices.
It is a financial tool that enables companies to sell their unpaid invoices to a third-party. The factoring company will buy the invoices for a percentage of the total value and become responsible for collections.
Factoring has been increasing in popularity as a simple and alternative form of funding. This type of financial solution has grown tremendously since it has become more and more challenging for businesses with imperfect credit to use traditional finance products from conventional lending institutions, like banks. The costs for invoice factoring differ based on several factors, including the value of invoices in question, the size of the company, and the level of risk for the lending partner. The costs are usually broken down into a service charge and a factoring fee.
Invoice factoring may help you with anything you need the money for, from paying staff on time to purchasing new equipment or growing your firm. It also provides your consumers with a broader variety of payment options. At 1st Commercial Credit, we guarantee a fast approval procedure. We hope that by reducing paperwork, we will reduce irritation and speed access to the capital you need to expand your firm. In comparison to typical finance, invoice factoring might provide several new options.
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 specializes in accounts receivable loans and on making quick approval decisions. The primary requirement is that a company has invoices for work or orders that have already been satisfied. Approval is likelier if the business has been in operation, meets revenue requirements, and is free of liens or legal issues.
Tennessee is a master of automotive manufacturing and acts as the engine of the nation. A combination of having more than 930 auto suppliers and having the second-lowest tax burden in the country have placed this state at the top of the industry. Tennessee is home to some significant automobile headquarters, including Nissan's North American, General Motors, and Volkswagen. The top export for the state is transportation equipment which accounts for 12% of the total exports. There are also many automobile-related manufacturers in Tennessee like Bridgestone Americas, Calsonic Kansei, Hankook Tire, and Magnetti Marelli, to mention a few.
The Benefits of Working with Automobile Manufacturing Factoring
Receivable financing brings a lot more than just immediate access to cash. There are many advantages for your automobile manufacturing company when turning to this form of financing.
Your business sales are the only funding limiting factor:
There are no minimum or maximum amounts your business must factor in. Your company can factor as much as you want and as often as you need to maintain the cash flow needed for your business.
Not a long-term contract: You won't be stuck in a factoring contract. Most agreements are valid for six months to one year, and business owners can regularly review how the financing service works for you.
Eliminate the current business debt: Access to a consistent supply of cash will allow you to pay off existing debt. You will also increase your credit to qualify for future financing.
Benefit from early payment discounts: manufacturers can negotiate early-pay deals and take advantage of bulk order specials and other payment incentives with suppliers.
Save your time and money: 1st Commercial Credit will provide complimentary credit and background checks to make sure you're selling to creditworthy clients.
24/7 online platform access: our online reporting system is available to you 24/7, so you can freely access and update your account information.
Low and bad credit is approved: Manufacturing companies of all sizes and in all financial positions can be eligible for our accounts receivable factoring program. In addition, we do not take a company's credit history into account when making a funding decision.
Manufacturing financing can help your business:
All our produce clients have the same cash flow problems. Growers usually want cash on delivery or pickup, and the customers typically want credit terms of 21 days or more. These credit terms will end up causing a tremendous cash flow gap when you are trying to grow your agribusiness.The agriculture and produce industry is one of the fundamental sectors in the country and for all American families. The agriculture business involves a complex process with demanding work and financial struggles from time to time. Today’s farming involves numerous entities working together in harmony to bring food to our tables.
To make everything run smoothly, farms require a consistent and reliable source of funding. Yet farming often has slim margins and seasonal sales that traditional banks generally do not want to deal with. Agriculture financing is how agriculture companies can access the funds needed to harvest and ship their crops.
The delivery of perishable produce on time is vital for any agriculture business. Failing to deliver on time can result in huge business losses. Fortunately, 1st Commercial Credit can offer agriculture financing services such as account receivable factoring. The setup process for agriculture factoring involves filling out a short and simple online application. In most cases, you can have the fast cash you need in a matter of days rather than weeks or months.
Factoring agribusinesses is a safe financial alternative to traditional bank loans and lines of credit. Banks and other financial lenders will require an almost perfect credit history and often ask for substantial collateral to secure funding. Factoring for agriculture businesses puts money in their bank accounts without making them go through an expensive, time-consuming, and painful process.
Agriculture and produce factoring offer many advantages to your company, including:
Immediate funding — funds will be received within 24 hours of invoice verification.
Financial flexibility — no minimum or maximum amounts to factor. You can decide which invoices you want to send us for factoring. Your business will also have absolute flexibility to use the money where you need it most.
No additional debt acquired — Agriculture receivable factoring is not a loan, so it does not create debt on your company’s balance sheet.
Build or improve your company’s credit — On top of not adding extra debt to your business, factoring loans can even help you pay off existing debt and increase your credit score. Produce and agriculture distributors can use the cash provided by factoring companies to cover payroll funding, delivery, and pickup costs.
Freight factoring is when a company’s accounts receivable are converted into immediate cash by selling the freight bills or outstanding invoices to a factoring company. Instead of waiting for 30- 90 days for a load to be paid, a factoring company will get you that money now and charge a small factoring fee.
In the freight and trucking industry, payments are rarely made right away. These process times can help or ruin a freight company’s cash flow reserve, and many have had to turn to other financial options to make ends meet from time to time. In the past, many companies relied on bank loans or even credit cards to stay afloat and cover business expenses and bills. Not only is this difficult to qualify for, but it can end up costing thousands of dollars in interest payments for the trucking companies.
With freight factoring, a company or owner-operator continues making their delivery as usual, but instead of waiting on payment, they “sell” the invoice to a third-party trucking factoring company like 1st Commercial Credit. This company will purchase the invoice for a high percentage of the invoice. With access to money, the freight company continues with its business as usual, while the freight factoring company is now responsible for the invoice and does all the waiting. We also provide services to clients and factoring that will help you stay on top of your competition in the industry.
The invoice factoring process works like this:
Cash flow management is crucial for any successful business in Tennessee. The proper management of your cash flow reserve will ultimately allow your business to expand, hire new employees, invest in new marketing strategies, and much more. Having an experienced lender as a partner will drastically change what you can do when you have unlimited access to a healthy, reliable, and consistent cash flow for your business.