As Your Business Grows
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We Deliver The FUNDS
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.
learn moreMany businesses will need to find a funding source at some point during their business growth and expansion. Applying for a bank loan is always an option but not accessible for small businesses and startups. On the other hand, invoice factoring is a financial method that involves selling your accounts receivables to a factoring company in Norfolk. This type of financing will aid businesses in experiencing cash flow issues while waiting weeks or months for customer payments on pending invoices.
Factoring transactions are structured as a sale which means, for each invoice, the factoring company purchases from you, and there will be a purchase agreement involved. The factoring company will verify the invoices before sending you the cash advancement but once verified, the cash will be in your hands in no time. Many companies in various sectors in Norfolk use invoice factoring as it is more accessible than a traditional bank loan, and it doesn't require credit checks to qualify.
Banks often have a long list of requirements to qualify, paired with a complicated and time-consuming process. These banks demand that businesses have impeccable credit history and can also ask for business collateral. Moreover, it has become increasingly difficult for some businesses to obtain funding through a traditional financing institution.
In this case, Norfolk businesses can turn to accounts receivables factoring to find a consistent and reliable funding source and sustain their business. 1st Commercial Credit makes sure your business gets the funds needed as long as you can provide accounts receivable invoices to sell. The funding process with us is fast and straightforward, and a decision can even be made on the same day.
Factoring lenders do not base their funding decision on a business owner's creditworthiness or business financial records. Banks will do an extensive assessment of your financial and credit history before considering your application for a loan. Banks will also determine loan rates, terms, and approval on your company's financial records. Factoring companies are more focused on your clients' creditworthiness and their ability to pay their invoices, and they will put together a financing plan that fits your company's needs. Our accounts receivable loan rates are low and competitive at 0.69%-1.59%.
Another considerable benefit of factoring invoices is that it is a debt-free funding solution for businesses in Norfolk. Often, adding new debt to a small business can be detrimental. Factoring will simplify the process to get the money you need to expand your services and meet operational costs without incurring debt with a bank.
Businesses often find international trading is a step they need to take to accelerate their business success and take it to the next level. In most cases, the biggest challenge in international trade involves the financial status of a business, specifically the available working capital. The payment terms offered to global suppliers and customers are typically very long, and the costs associated with this sector begin far before the goods are even delivered.
This situation usually forces businesses to wait even longer before receiving payment. When your company gets an order from an overseas customer, you will have to contact your supplier to place an order. Often, suppliers require immediate payment (or a substantial deposit) before shipping the goods you need, which usually takes a few weeks to arrive. Once the goods arrive, your company in Norfolk can process the order and forward the goods to your final customer, which also takes a few weeks. In summary, all this process is very long and will require your company to make many up-front payments before getting paid for the order itself. This significant spending needed to fulfill an order will result in a cash flow predicament, but factoring in international trade can help businesses resolve this issue.
Export trade finance companies offer a solution to all this. They typically understand and can work with your company’s specific trade financing needs.
For example, we offer export trade finance and international lines of credit to help make your company’s importing and exporting a success so you can achieve all your business goals. Typically, there are two significant cash flow gaps with the international trade cycle. One is when a business owner has to pay fees in advance to suppliers at the beginning of the process. The other gap is at the end while a company is waiting for payment from customers.
Our international trade finance services help wholesalers, distributors, and importers pay for the initial goods they need to get the transactions moving. 1st Commercial Credit will pay the supplier directly so you don’t have to pay out of your cash flow reserve, knowing it could be months before getting that money back. The agreement is based on a confirmed purchase order and the credibility of the companies involved in the process. In addition, we will take on the initial cash burden so you can reduce the long time your business is taking money out of the working capital so this money can be allocated somewhere else instead.
Companies in Norfolk experience a second cash flow gap while waiting for the customer to pay for the goods delivered. Invoice financing gives you a significant percentage advance on the invoice’s value immediately. Then, when payment is completed for that invoice, the lending company gives you the remaining amount minus a small factoring fee.
It can be difficult for some small manufacturing and wholesale companies to receive credit from suppliers. Many times suppliers will not extend enough credit, and when they do extend credit, they usually demand immediate payments. This situation can limit how much inventory you will be able to purchase and your ability to sell and expand. Suppose your business has funds tied to outstanding invoices or needs access to funds to buy equipment, fund payroll, and cover other pressing business costs.
In that case, 1st Commercial Credit can help by financing manufacturing firms. We offer various types of funding, like asset-based financing that allows companies to leverage their existing inventory. Our financing programs allow businesses to improve cash flow and provide them with the funds needed to pay for expenses. Invoice factoring is available to growing and small businesses that otherwise will find it challenging to qualify for bank financing. 1st Commercial Credit provides inventory financing for distributors, wholesalers, and manufacturing companies.
Some Advantages of Inventory Finance for Distribution and Manufacturing Companies
Funding is based on receivable assets and is considerably more flexible and reliable than other forms of conventional lending. This is why it has become a more preferred form of lending among both funding agents and borrowers in numerous manufacturing, distribution and sales businesses. Once your loan is approved, your company's production and sales operations can continue moving toward the goals and take advantage of current and future growth opportunities.
Obtaining new clients and contracts is vital for any manufacturing business in Norfolk, as this will result in having access to the resources necessary to grow business operations. Many business opportunities require extra financial help. Invoice lending arrangements can be particularly beneficial to those businesses that lack collateral or have had financial challenges in the past.
A manufacturing business loan is designed for companies that may not be eligible to qualify for traditional financial lending for a variety of reasons, including:
Factoring companies in Virginia can provide much faster response times. Invoice loans require minimal paperwork and can usually be approved within a few working days and, in some cases, within 24 hours. By taking advantage of these alternative financing alternatives, companies in Norfolk can obtain the materials needed to manufacture their products and deliver on time.
Most business owners have multiple options on how to acquire equipment. These choices include buying it upfront with cash, using a credit card line, requesting a loan from a bank, or utilizing an equipment financing lease or loan. With over two decades of providing financing services to business owners across various industries, 1st Commercial Credit believes a lease or financing solution is the better choice for today’s progressive businesses. There are various reasons why many companies turn to equipment leasing instead of purchasing with a bank loan. Some of these reasons include:
Independent equipment leasing companies offer better financing alternatives with affordable payments and flexible terms than a bank loan. If you are still wondering how an equipment lease/rental/financing agreement can benefit your business, here’s a list to help you understand it better:
1st Commercial Credit provides both equipment financing and leasing. Before choosing one of the two programs, it is crucial to understand the difference between an equipment lease and an EFA. With a lease, the business owner rents a piece of equipment for a fixed term at fixed monthly payments and has the option to purchase the equipment for an extra fee at the end of the term. In contrast, an EFA gives full equipment ownership to the business from the beginning and afterward as long as the periodic payments are met.
Norfolk’s strategic and central location on the East Coast gives the city many advantages, including proximity to significant business, governmental, financial hubs, and availability to international markets. The major industries in Norfolk include business and professional services, advanced manufacturing, healthcare, life sciences and biotechnology, insurance, transportation and logistics, and maritime.
Norfolk is a diverse place with an incredible coast and various landscapes, attractions, and things to do. There are three main seaside resorts for families. In Great Yarmouth, there is Pleasure Beach and Golden Mile. Norfolk’s pristine beaches are ideal for swimming and enjoying the summers. Norfolk is experiencing growth in both businesses and tourism and offers an excellent environment for families and business owners.
1st Commercial Credit is a company factoring receivables in Virginia and various cities including:
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