To Small Van Courier providing deliveries in Ireland.
To Small fashion importer and exporter
Every successful organisation that you see has a way of handling corporate debt which allows the company to pay its bills and remain solvent. A good business owner will generate reports and spend time analysing his company’s finances to determine where debt is having the most significant effect. As the reasons for creating debt multiply, it becomes necessary for the business owner to seek out a financial partner that can help keep debt under control and prevent debt from stunting the company’s growth. The process of identifying debt and its effects is much easier than finding a financial partner that can help; until now.
When a business owner is faced with mounting debt, one of the first inclinations is to seek out help from outside financial sources. There will be meetings with banks where bank funding such as loans and credit terms will be discussed. But a smart business owner knows that the solution to his debt problems is sitting right in his sales ledger. He does not have to talk to an outside source to find the answers to his economic problems. 1st Commercial Credit can offer a comprehensive invoice discounting service that will lift your company out of debt and get you on the path towards corporate growth and success.
The biggest problem with relying on banks for debt funding is that banks inevitably create more debt. When you utilise a bank loan to pay off a debt, all you are doing is trading one debt for another. The bank loan has terms that require you to meet monthly payment requirements to avoid damage to your company’s credit profile. If you use that loan to meet payroll, then you will be making monthly payments on that payroll loan for years after the paycheques are already cashed. In the end, utilising a bank loan to lower your debt is actually making your debt worse. The real solution should come from your company’s invoiced sales and that is where invoice discounting comes in to play.
Invoice discounting through 1st Commercial Credit turns your invoices into cash and provides you with the debt funding you need through your own company resources. Instead of borrowing cash and paying interest on it for months or years to come, you will have a business line of credit which is funded by the entries on your sales ledger. As long as your company is able to generate invoiced sales to your clients, then 1st Commercial Credit can create the cash flow you need to pay your debts and keep your company moving forward.
As a business owner, you spend years building your company into something that you can be proud of. You work hard for your clients and keep a close eye on your ledgers to make certain that your company can stand on its own and remain strong. When you have to reach outside your company and borrow money from a bank to pay debts, then you lose a big part of that autonomy that you fought so hard to gain. 1st Commercial Credit is not a bank and we do not deal in loans. We offer cash advances that utilize your company’s invoices as collateral. Everything we do is done for your company and using your company’s own resources.
1st Commercial Credit is also not interested in your company’s credit score. The decisions about approving invoices are made utilising the credit scores of your clients, which is how we are able to help companies that have less than perfect credit. A bank wants to see your sales ledgers and your financials to determine if you are a good risk or not before approving a loan. 1st Commercial Credit is only interested in dealing with the financial foundation that your company has created. We will work with you to create a customized program that fits your business model and supplies you with the cash you need to pay all of your outstanding debts. We give you back your sense of pride by using your economic accomplishments to help your company grow.
One of the truly frustrating things about corporate debt is that it can accumulate in any part of your business. If you are not careful, you could build up a huge obligation to the company that supplies you with bathroom essentials and then that becomes a critical debt that you have to deal with. Any time that your company pledges to spend money on something, it creates debt. The key is to have the kind of cash flow you need to manage that debt and make certain that the bills you are agreeing to can be paid using your current resources. If you plan things properly, then future growth projects can also be funded by your company’s cash flow and that is the sign of a truly successful company.
Debt also occurs when the cash you are relying on to pay those bills you have agreed to is not being deposited into your bank account as planned. Your sales ledger will show you how much money you can expect in payments from customers based on the due dates for your invoices. Theoretically, you should be able to use those dates as financial milestones for planning financial projects. But the reality is that your sales ledger also has an aging side to it which shows you how late many of those invoices are becoming. When those aging dates start to pile up, that is when debt becomes unbearable.
Invoice discounting is a process that utilises your invoices as collateral for an ongoing series of cash advances. There is a small fee per invoice that is deducted from the cash advance, but the remaining balance of the invoice is deposited directly into your corporate bank account. 1st Commercial Credit will work with you to develop a system for approving invoices that allows you access to your cash in 24 hours. It only takes a few business days to approve an application and set up an account. Once the account is in place, the process becomes almost automatic. The only thing you have to do is make certain that you are issuing invoices to creditworthy clients. As long as the clients have good credit, the process will go on indefinitely.
Instead of reaching outside your company’s financial scope to handle debt, you should look at ways to keep the debt managing process internal. Your sales group works hard to generate the invoices that represent your future cash flow. The worst thing you can do is let a bank tell you that your pending invoices are not worth anything until they are paid. To 1st Commercial Credit, those outstanding invoices are assets and we use those assets to help you get a handle on your corporate debt. Instead of looking at your sales ledgers and seeing money you do not have, you can look at your sales ledgers as sources of cash that will help you manage debt more effectively.
Debt is a problem that every company deals with on a regular basis. The most successful companies are the ones who understand how to handle debt and have ways of managing debt that do not involve outside funding. Instead of entrusting your company’s future to the whims of a bank officer, you need to get involved with invoice discounting from 1st Commercial Credit and put a stop to the revolving debt caused by bank borrowing. Your sales ledgers are filled with the invoices you need to pay your debts and move your company forward. 1st Commercial Credit can put together an invoice discounting plan that will maximize your cash flow and give you back control of your company’s future.