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.
1st Commercial Credit stands out from other accounts receivable funding companies because it offers the best cash flow solutions for service providers across the country. If your Spokane business provides professional services for slow-paying enterprises, your cash flow can be affected.
You can resolve this financial struggle with 1st Commercial Credit’s accounts receivable asset program for service providers. Many companies benefit from working with this form of financing because it has a more straightforward application process. Businesses in this industry sometimes may not have sufficient working capital if their needs are seasonal or they cannot promptly pay providers. Bank loans may be an option, but they typically have a long and demanding list of strict requirements for approval. However, the bank loan option is not possible for businesses just starting up or others going through financial difficulty or lacking adequate collateral.
Many companies benefit from asset-based financing, including manufacturers, distributors, and service companies. As a result, factoring service providers programs have become a popular and significant funding source for businesses seeking to grow capital or generate working capital to cover urgent business expenses. Usually, asset-based lending companies structure their loans with an advance on accounts receivable, which is a very liquid and desirable asset to lenders. However, lenders can also make ambitious advances on other sorts of collateral such as accounts receivable, inventory, business equipment, and more.
Receiving credit from suppliers can be difficult for some small manufacturing and wholesale companies. Many times suppliers will not extend enough credit, and when they do extend credit, they usually require immediate payments. This situation will limit how much inventory you will be able to purchase and will also limit your ability to sell and grow. If your business has funds tied to inventory or needs access to funds to buy more inventory, 1st Commercial Credit can help by providing inventory financing.
This form of funding is a type of asset-based financing that allows companies to leverage their existing inventory. It is a means to improve cash flow and provide the funds needed to pay for business expenses. Inventory financing is available to growing and small businesses that otherwise find it difficult to qualify for traditional bank financing. 1st Commercial Credit provides inventory financing for distributors, wholesalers, and manufacturing companies.
Our inventory financing program offers many advantages and benefits to businesses, including:
There is a field exam and appraisal process required to determine the quality and cost of the inventory. A third-party company may be hired to come and check your facilities. Naturally, there will be a cost for this process and due diligence. This cost is different and is based on the size and complexity of the line. We want to be assured that you will meet regular loan payments on your ongoing inventory turnover through sales volumes.
Some Advantages of Inventory Finance for Distribution and Manufacturing Companies:
Fast approval for inventory-based loans — Inventory lenders often approve these loans with flexible parameters and rely primarily on sales revenue and receivables. The requirements for inventory finance often involve less demanding documentation. Agreements will be based on the appraised value of inventory on hand, which our experts can quickly determine.
Easier loan qualification for many businesses — Many sales and production companies ineligible for traditional businesses will have an easier time qualifying for inventory loans. Lending on inventory works exceptionally well to finance inventory for companies with many limitations.
Funding is based on assets and is considerably more versatile 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.
Necessary Steps to Qualifying for an Inventory Loan
There are several critical steps to obtaining an inventory loan for your Spokane company. When applying for your asset-based loan with 1st Commercial Credit, you will most likely be required to submit specific data and information, including:
Approval is highly likely if you meet the requirements. Once your loan is secured, you will have the confidence and assurance that your company's production and sales operations can proceed toward the goals and take advantage of current and future growth opportunities.
Suppose your Spokane business has lost its staffing agency line of credit for any reason. In that case, you can contact 1st Commercial Credit, and we will show you how funding receivables can replace your line of credit and keep your company running and out of debt.
During challenging times, lenders are more inclined to demand payment or find borrowers in default for minor technicalities. Business owners need to be prepared for this and always have a backup plan to deal with these types of situations when the bank removes your lines of credit.
An excellent financial alternative for a business that sells to other companies and carries accounts receivable on its books is partnering with a factoring company that offers payroll funding for staffing agencies. A factoring company finances 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.
Factoring gives you access to sufficient funding- obtaining funds through invoice factoring will provide you with the cash you need as long as you have accounts receivable invoices to sell. The funding process is quick, and many factoring companies offer same-day funding solutions.
Funding does not depend on your creditworthiness- When applying for a bank loan, you’ll need to provide the bank with vast amounts of financial documentation before it considers your application. Banks use your credit score to determine if you’ll get a loan, and they also use it to establish the loan terms. Small businesses are often proposed a loan agreement that doesn’t meet their funding needs and, on top of that, comes with high-interest rates and other fees.
In contrast, when a company uses invoice factoring to get funding, it will get just the amount of money needed at the time required. Factoring companies won’t consider your credit score when purchasing invoices; they’re more concerned with the creditworthiness of your clients. If your clients show an ability to pay for their invoices, then you’ll get your cash advances with favorable fee terms from the invoice factoring company. Invoice factoring is a debt-free type of funding.
In addition, the cost of factoring receivables 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.
Spokane is the main cultural and economic hub of the greater Spokane metro area and inland Northwest. This metro area is a central hub for commercial, manufacturing, and transportation activity in the region. It also serves as the epicenter for shopping, entertainment, and medical services. Agriculture continues to be a prominent industry in the region’s economy, with more than 2,500 farms.
Similarly, food processing generates over $566 million in revenue for Spokane. The leading sectors are education, mining, construction, manufacturing, trade, health services, transportation, utilities, and government.
Spokane is home to several colleges, including Whitworth College, Gonzaga University, and the Riverpoint campus of Washington State University. Spokane has a famous river that runs through the valley and the heart of downtown. In addition, this city is primarily known for its natural resources: farms, mines, and forests. Spokane also has a large historic district with museums, railroads, and state parks.