Business owners in Seattle often find themselves in need of working capital at one point or another. There are many reasons why this happens, pending bills, slow-paying clients, or having a hiccup in operations. Unfortunately, most businesses only think of traditional lending such as bank loans or credit lines to solve their cash flow needs. Even though these options continue to be very popular, they might not necessarily be accessible to all business owners, specifically startups and entrepreneurs.
The reason why traditional forms of lending might not be the best solution to your financing issues.
Obtaining capital from the bank has been the standard way to go. Unfortunately, it has become increasingly more difficult for entrepreneurs and startups. Often the bank loan requirements are extensive and strict. One of those requirements is having a long and established history of credit which might be impossible for many small businesses just starting out. Bank financing also involves a lengthy and complicated process. Because of these and many more barriers to traditional bank lending, many entrepreneurs and startups have begun seeking alternative forms of funding.
AR financing is a safe and reliable alternative form of business financing that provides immediate and consistent working capital to businesses. It works by using a company’s accounts receivable as a basis for financing, allowing fast and predictable access to cash flow.
Advantages of AR Financing
Many startups and entrepreneurs may find the setup of factoring to be a better fit for them. Overall, outsourcing accounts receivable by employing an invoice factoring company is a practical, cost-efficient method of small business and startup financing.
Invoice finance helps with the second cash-flow gap.
Businesses experience a second cash flow gap while waiting for the customer to pay for the goods delivered. These payment gaps are experienced with both domestic or international customers. Invoice financing gives you an advance of most of the invoice’s value right away. Then, when payment is received for that invoice, the lender gives you the remaining amount minus a small factoring fee. A few types of invoice financing include factoring, and discounting can be used for all invoices. In contrast, selective invoice finance works when a company only wants to finance the occasional invoice.
Businesses in Seattle can easily tap into their receivables assets for immediate cash flow, so their production line doesn't have to be disrupted. Your business will be able to offer credit terms to customers at an affordable cost, take advantage of early-pay discounts from suppliers, buy larger quantities, and many other opportunities. Accounts receivable loans use the company's unpaid invoices where money is tied to these unpaid invoices. Businesses need access to this cash to cover daily operations. Accounts receivables represent a line of credit extended by a factoring company in Washington.
Most companies must sell to their customers on flexible credit terms, which means they deliver the goods or services right away, send an invoice, and then have to wait a few weeks or months to get paid. Having a large number of customers is great for any business. The problems arise when some of them are paying late or are not paying and hurting your business. 1st Commercial Credit can offer the best financial solution to solve your business's cash flow issues.
The capital from manufacturing financing can be used to:
1st Commercial Credit provides the best financing solutions to manufacturing-related businesses. We can fund a variety of manufacturing companies. Many of these companies currently taking advantage of factoring their invoices include: Textiles, packaging , paper, plastic, wood, chemicals, machinery, electrical, transportation, food/beverage, auto parts, equipment, steel products, manufacturing, staffing companies.
Using Your Invoices As Collateral For Your Staffing Agency
Staffing agencies need to provide a paycheck at the end of the pay period even before receiving payment from the clients. Often, these firms don't have the capital to meet payroll until their clients pay them first. Staffing firms can avoid this situation by turning to accounts receivable financing for staffing agencies. 1st Commercial Credit provides factoring services for temporary staffing agencies in Seattle. In addition, we can help your business by delivering payroll funding and staffing loans. When companies pay their employees on time, they will perform better.
Is your Seattle staffing company growing faster than your capital?
We accommodate accounts receivable lines of credit for new staffing companies with minimal funding needs. We can also provide financing options like our asset-based lending solutions for larger, more established staffing agencies. 1st Commercial Credit responds to your financial needs and can facilitate initial funding within a few working days. We do not require up-front fees or any company financial records and offer competitive and affordable accounts receivable financing rates.
Many of our clients experience the following cash flow problems:
The Seattle region continues to boom; it is currently ranked 10th in the United States. The main sectors flourishing in Seattle include cleantech, manufacturing and maritime, life sciences and global health, information technology, and startups. Seattle’s tech sector continues to boom and is an engine for the economy thanks to big companies like Amazon and Microsoft. The companies in the Seattle area are famous for inventing future technology, including green tech.
Many trusted talented scientists and entrepreneurs call Seattle home, and it is currently the nation’s top 10 metro areas with the most cleantech patents. Seattle is committed to building a diverse and robust economy by improving its position as a gateway for international trade and increasing family-wage jobs in the manufacturing and maritime sectors. Seattle has an extensive history of innovation, along with a spirit of adventure, propelled by economic and cultural diversity and fueled by creativity and a strong sense of community.
Seattle is famous for many things, including Starbucks and overall coffee culture, a grunge music scene, the Space Needle, Pike Place Market, and the Seahawks. In addition, the headquarters of many tech industry companies, including Amazon and Microsoft, are located in the city. It is also a very outdoorsy city where visitors can hike, kayak, and experience outdoor life. From mesmerizing natural beauty and world-class attractions to major sports teams, a culture scene, and thriving arts, there are plenty of things Seattle offers.