What Industries are Accepted for Invoice Factoring?
Posted on December 11, 2017 in Invoice Factoring
1st Commercial Credit specializes in many industries. But what we've seen the most common industries that come to us on an ongoing daily basis is trucking companies, temp staffing agencies, manufacturers and distributors. Those are the majors, for our trucking clients, you know trucking companies are billing on net 30 days, and their daily cost is fuel, and sometimes they may get a spike in business to the point where they're not able to sustain the fuel. So they come to factoring companies to give them a consistent predictable cash flow. Right. An additional service we have for trucking companies. Is fuel cars and that gives them a discount at the pump.Other additional services would include fuel advances which gives them upfront money to be able to process a load prior to billing.
As far as for temp staffing firms. You know temp staffing firms go through some seasonal sales sometimes and they bill a net 30. Their customers usually pay 40 to 45 days, and the number one costs that a staffing agency has is payroll and taxes. You know with invoice factoring, they're able to smooth out their cash flow and get a consistent payroll.
Another thing that we offer for temp staffing agencies is actually payroll funding which is funding prior to invoicing. Sometimes they put on more staff than normal and they have to come up with more payroll money before they're able to create an invoice and factor it.
And lately manufacturers and the distributors are coming to us for factoring because the economy is growing. And there's going to be more and more demand for receivable finance because as companies get out of that even sales pattern. And start to get a spurt in business it's going to knock out the cash. They are going to bill more on credit terms and they're going to need to pay suppliers and they are going to have that cash flow gap and that’s why they are coming to 1st Commercial Credit for funding.