What Does 1st Commercial Credit Offer?
1st Commercial Credit is a corporate finance company that can benefit many and varied types of businesses in their particular situations. Invoice financial services, asset based lending and purchase order financing could be especially advantageous to those with seasonal or other determining, fluctuating capital demands. Alternatively, it works for companies that because of a variety of situations, find it difficult to arrange the usual type of business loan.
Invoice Financing as Your Line of Credit
Invoice finance could be regarded as being the most effective and efficient methods for a business to raise the cash needed for its daily operations and inherent costs. These generally include paying accounts for services, wages and increasing the inventory. Invoice financing involves using outstanding invoices that were sold on credit terms as collateral. By this method, a company is able to establish what is ostensibly, a line of credit for whatever purpose for a required period, without needing to burden itself with extra term debt, or reducing its equity. Click here for more information about Invoice Discounting or Factoring.
At 1st Commercial Credit, we make factoring and invoice discounting easy to obtain with minimal paperwork. We normally advance 85% to 90% of the value of approved invoices depending on the industry, which is more than what the traditional bank loan facility would fetch for you. Our decisions are not based on financials, tax returns or other collateral offered. But we make our decisions primarily on the invoicing process and credit strength of the account debtor (buyer). We specialize in evaluating and provide factoring or invoice discounting facilities in less than a week. We adopt a simple approval process and we can expedite initial funding in 3 to 5 working days. Our clients can avail the benefits of our prompt service and begin to use their funds within days of completing an application. Click here for more information about Invoice Discounting or Factoring
Invoice Discounting and Factoring rates as low as 0.20% - 2.5%
(Rates subject to industry and collection cycle)
The Hidden Collateral: Asset Based Lending for Working Capital
1st Commercial Credit can provide lending services based on existing assets of the business. This allows entrepreneurs to strengthen their capacity to borrow funds by utilizing accounts receivable and inventory as collateral. This financial solution is excellent for businesses which have plenty of assets to offer as collateral, but lack working capital in their business. .
Benefits of Asset Based Lending Over Bank Financing
1st Commercial Credit is capable of giving higher advance rates because of our expertise in handling sales ledger valuation. Asset based financing is far better than what banks offer because banks are tied with lending on tangible hard assets. Banks may also consider stock and other tangible assets as guarantee but this usually involves low advance rate. In the event our client already has a bank loan or line of credit, we are able to work along side with the bank and extend our assistance to create an Inter-creditor agreement which binds both our 1st Commercial Credit and the bank. The sales ledger asset will be turned to us and in effect, the client will have the chance to borrow at higher advance rate. 1st Commercial Credit has provided assistance to a lot of companies with insufficient capital. These are companies which have progressive receivables and their growth has become much more than their cash flow intake. This financial solution is ideal for service companies, manufacturers and distributors which have strong balance sheet so that cash flow remains smooth.
Which Industries Qualify for Factoring and Invoice Discounting?