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.
Running a freight trucking company takes a lot of work, and it also means you will have a lot of logistics and operational costs. Freight factoring or load factoring helps make the process a bit easier and helps you manage your cash flow.
The first step is to understand what freight factoring is and how your trucking business in Memphis can benefit from using it. The freight and trucking business looks like this: You pick up the goods at location A, deliver them to location B, and the shipper/broker pays your company for that service. The amount you receive minus your delivery costs is your profit. The financial struggle arises when you don’t get paid that profit right away, which is for all transactions.
The industry-standard average is 30 days, and some companies can take up to 90 days or more to pay invoices. That’s a very long time to wait for payment while still running operations and continuing delivering goods. Freight factoring allows you to sell that invoice to a factoring company that, in exchange for a service fee, will pay you for that job immediately and then collect from the shipper or broker directly whenever the payment is finally made.
Essentially freight factoring drastically decreases the time you have to wait for payment for the work you have already done. The process is the following:
More Benefits of Working With Freight Factoring Companies
Freight factoring companies take on some of the accounts receivable functions of your company. They will often invoice brokers directly on your behalf, and the broker pays them, not you. This is why lending companies charge a fee for their service. Freight factoring companies also offer services such as broker credit checks. By having these freight factoring companies collect from the brokers or companies on your behalf, you are freed up to handle other crucial aspects of running your business.
Freight invoice factoring is a convenient and lucrative way to access necessary funds for small and larger companies, whether established or just starting. It takes a lot of the worry, responsibility, and time-consuming tasks off your hands so you can focus on other areas of your business.
We make the trucking factoring process extremely simple and offer various financial services for trucking companies in Memphis. We have designed our programs to streamline cash flow for transportation companies and allow them to cover their expenses and expand their business. Freight factoring companies also offer additional back-office services such as credit checks, invoicing and collections services, fuel discounts, advances, and online reporting.
Continue growing with our receivable factoring for the agribusiness in Memphis. Agriculture and farming are two very challenging businesses due to the hard labor, seasonality, and the expense of equipment involved with this industry.
In the produce industry, the growth of a profitable crop can either explode or be halted by unexpected circumstances. On the bright side, factoring can be the solution to this financial issue for many businesses. The risk for unforeseen situations is mainly why traditional banks are reluctant to lend to the agricultural and farming sector. Also, the combination of thin profit margins, significant expenses, and complicated supply chains makes it challenging to obtain financing.
Agriculture factoring is a long-established form of financing that has been used for many years. Farmers, distributors, food processors, food manufacturing companies, food packaging companies, shippers, and suppliers can all take advantage of agriculture financing. Agriculture factoring provides capital for your business in just a few business days. By purchasing your current unpaid invoices, agriculture factoring companies can pay you for them immediately.
Businesses won't have to wait weeks or months to collect payment from their customers. Factoring companies charge a small fee for expediting this payment process which can range differently for each transaction and depends hugely on the type of business (The more current the invoice, the lower the fee).
More importantly, agriculture factoring does not rely on your credit score for approval but the creditworthiness of your invoices. The produce factoring company only assesses the credit of your customer. Setting up an accounts receivable line of credit with 1st Commercial Credit for the produce industry is a simple process. Unlike other traditional financial lenders, we know the unique characteristics of the agricultural sector. The staff at 1st Commercial Credit is familiar with the process, challenges, and opportunities that await your business.
Our factoring program will provide working capital for your business within just a few working days. When your account is approved, we can finance the invoices and advance the funds fast. Your company will receive fast cash and avoid waiting weeks or months to receive payment from clients.
After applying for equipment financing with us, funding can be received in as little as two days. Monthly payments are spread out over a loan term extending anywhere from two to ten years. The purchased equipment secures equipment financing, so if the borrower defaults on the loan, the lender can repossess the equipment used as collateral. Equipment leasing differs from financing in that the business owner pays to use the equipment for a predetermined time rather than owning the underlying equipment, as is the case with financing.
Leasing also lowers the upfront cost of getting equipment and reduces the impact of depreciation. Because of this, equipment leasing may be a better fit for businesses not planning to use the equipment for very long. On the other hand, businesses planning to keep the equipment for longer may benefit more from equipment financing. We also work with the agriculture sector, providing a fast and straightforward application process for farm equipment financing.
If you are ready to work with a lender that provides the best financing solutions, contact 1st Commercial Credit to learn more about our financing services. Business owners can also use our equipment lease calculator to insert their credit score range and the amount they’re looking to finance to obtain a quote.
Memphis benefits from being a location of choice for businesses and has a diverse set of key industries. Greater Memphis is competitively positioned to grow future-focused density in agribusiness and technology, advanced manufacturing, food and beverage processing, medical devices and innovation, and transportation and logistics.
Memphis is known in the world as the "Home of the blues and the birthplace of rock 'n' roll." This city is also famous for its music. Some of the main attractions include Beale Street Historic District, Graceland, The Memphis Rock N' Soul Museum, Stax Museum of American Soul Music, Sun Studio, and The National Civil Rights Museum.