The process of obtaining funds from a bank loan is often complicated and lengthy, and for many businesses in Virginia, this is not even an option. Banks loans provide cash but also debt. Banks will also demand an impeccable credit score and also ask for business collateral as a backup. If a company ends up qualifying for all this, the final approval and access to cash can take several weeks to months. Factoring allows companies to receive working capital without relying on an expensive loan with a high-interest rate and incurring debt.
Small businesses that have not been in operation for a long time will usually have low average credit and few company assets. These businesses and startups will face difficulty trying to get loans from either the bank or private investors. A safe alternative to this would be for a company to turn to small business factoring services. This alternative form of financing has gained extreme popularity in the past years because business owners have uncovered the many advantages associated with it, especially when compared to other traditional forms of financing.
In contrast to bank loans, factoring financing makes the entire application and approval process fast and simple. Invoice factoring also comes with many valuable benefits. At 1st Commercial Credit, we know that every business is different and deserves a customized financing program; that is why we offer the lowest possible rate. Our factoring rates start as low as 0.69% and are usually no higher than 1.59%. In order to qualify for financing with us, we mainly require that a company has creditworthy customers and outstanding invoices to factor receivables.
1st Commercial Credit has substantial experience providing accounts receivable loans for almost every industry. We can evaluate your company's receivable with no commitment to find the best financing program for you. We can also help your Virginia business with unlimited payroll funding. Whether you're a startup or a multi-million dollar operation, meeting payroll can be challenging during growth, and we can help.
Factoring companies are cash flow lenders that finance your accounts receivable for a small factoring fee. Terms and rates vary according to the type of industry and the factoring company. This financing method is more affordable and accessible than any other traditional bank financing method.
Invoice factoring companies in Virginia can accommodate receivable-based credit lines to newly established companies with minimal funding needs. Asset-based lending solutions are also available for large companies that can go up to $10 million if needed. Accounts receivable factoring uses your company's unpaid invoices as collateral and can advance funds in exchange for those invoices. A huge plus that comes with a receivable credit line is that it can grow proportionately with your sales.
Accounts receivable funding companies will give you the amount of money needed when you need it. If your clients demonstrate they can pay for their invoices, then you’ll get your cash advances with favorable fee terms. Invoice factoring is a debt-free type of funding. In addition, the cost of factoring will save you money and help you smartly expand business activity. Factoring will also help avoid debt collection service fees and increase control over your finances.
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 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.
Startups face many challenges along the way, especially when it comes to managing business cash flow. Usually, startups will lack working capital at the beginning of their journey, which means they will need to find a source of funding to continue with their operations. Instead of turning to a costly business loan, obtaining financing through an invoice factoring company might be the best option for many startups.
Banks typically look into your business's financial history to determine if you are eligible for a loan and determine the rates. Startups often will have little to no financial history, resulting in being turned down by banks. On the other hand, factoring companies in Virginia will not focus on your financial or credit history to determine these bank loan rates and approvals.
Instead, the factoring companies are more interested in your clients' creditworthiness and ability to pay their invoices. We also offer cash flow management strategies to help businesses overcome their financial struggles caused by poor management of cash flow reserves and slow-paying customers while assisting them in planning and preparing better for the future.
With invoice factoring, your Virginia business can have access to an advance of up to 97% of the total value of your invoice. They offer low rates on outstanding invoices and take full responsibility for collections, so you do not have to worry about that. Your company can access fast cash in 24 hours or less when working with an invoice factoring company. You will be able to obtain the money you need to run operations smoothly and not be forced to wait and struggle with 30 to 90-day payment terms.
Instead of borrowing money from traditional financing institutions, partnering with us will allow your business to gain access to funds, continue taking on orders, make payroll every time, and take advantage of supplier discounts and many other business opportunities. Invoice factoring involves getting a cash advance in exchange for a small factoring fee. Startups and small businesses benefit significantly from this financial solution as they can have these funds by using their receivables and without taking on additional debt.
Help with Cash Flow — Maintaining cash flow is a common issue for manufacturing firms. Manufacturing factoring solves cash flow concerns by ensuring that you are paid on time – or ahead of schedule. There is no need to slow down output due to a shortage of funds if you address your cash flow gaps.
Factoring for service providers offers a simple cash flow solution for service providers across the U.S. If you provide professional services and have to wait for extended payment terms before receiving payments, your cash flow can be affected. You can resolve this financial issue with 1st Commercial Credit's invoice factoring program for service providers.
Many companies benefit from working with accounts receivables financing because it has an easy and accessible application process. Businesses in the service industry sometimes may not have enough working capital if their needs are seasonal and they cannot pay providers right away.
For some companies, bank loans can be an option, but they typically have a long list of demands and requirements for approval. However, the bank loan option is not always feasible for small businesses just starting, going through financial difficulty, or lacking adequate collateral.
In contrast, factoring uses your company's invoices in exchange for cash advances. When your business is approved, you receive a percentage of your invoice value immediately with a reserve payment of the remainder when the factoring company collects.
Payroll funding is a simple process:
Invoice factoring or payroll funding is a form of financing and a perfect fit for the service industry. Many companies have to wait 30-90 days before receiving payment for outstanding invoices. Still, many of these business owners need to make payroll far sooner.
One of the most common financial needs for the service industry in Virginia is payroll funding. Factoring companies can provide your business with fast cash to cover operational expenses, including payroll. Virginia's businesses experience tremendous growth after selling their receivables to increase their cash flow to cover payroll and other costs. 1st Commercial Credit funds new staffing agencies in Virginia every period, and they usually will invoice once a week after that. Our experience and customer service will help take your business to the next level while having access to unlimited funding that can be unlocked each time with your receivables.
By selling company receivables for cash upfront, your business will have access to the following:
Partnering with 1st Commercial Credit will be one of the most valuable additions to your business. If your business provides professional services to other companies, you can factor those invoices into available cash. 1st Commercial Credit works with a variety of service providers, including attorneys, accounts/CPAs, engineers, architects, business consultants, security guard firms, IT service providers, and public relations agencies. Factoring also offers fast funding for staffing companies and we have extensive experience providing payroll funding to these and many other firms.