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A Factoring Company Funding Montgomery, Alabama
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.
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Benefits Of Working With A Montgomery Factoring Company
Obtaining new and bigger contracts is crucial for any business in Montgomery. The ability to run operations and sustain growth will depend on having access to the necessary funds. Because of this, companies need to find the right financial partners that can help them manage short-term cash flow needs. Invoice lending arrangements can be particularly beneficial to those businesses that lack collateral or have had financial challenges in the past.
Our lines of credit secured by accounts receivable help businesses that may not be eligible to qualify for traditional lending for several reasons, including:
- Lack of substantial collateral to pledge
- Too many outstanding lines of credit or bank loans
- Minimal or no credit history
- Past credit and financial difficulties
Factors can use the value of outstanding accounts receivable to collateralize lending arrangements and provide immediate cash advances to business owners. 1st Commercial Credit makes approval decisions based on the creditworthiness and reliability of the customers owing you money. Because of this, it is considerably easier to be approved for these types of loans and lines of credit.
Meeting specific short-term cash needs means that small businesses will need access to working capital while using short-term assets as collateral for financing. 1st Commercial Credit offers two types of asset-based financing:
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- AR financing using receivables as collateral. As the business collects the receivables, these funds are used to repay the line of credit or loan.
- Factoring is a process where accounts receivable are sold to a third-party lender (factoring company) at a discount, after which the factor takes over the responsibility for collections.
Selling your invoices for future payment helps you get cash sooner than if you waited and collected the money on your own from customers. The factoring company that purchases your receivables takes ownership of the invoices and becomes responsible for managing them when the payment terms are over.
If you've decided that factoring is the best solution for your company, you will experience many benefits, including:
- Quick cash. You receive immediate payment in cash after delivering the goods/services and invoicing a customer.
- No debt acquired. Factoring is the sale of invoices (assets), not a loan. Factoring is a good financing alternative for businesses that do not qualify for traditional financing or do not want to incur extra debt.
- Eliminates collection efforts. Most factoring is "nonrecourse," meaning that the lender purchases all rights in the invoices, and the seller has no responsibilities for collection.
Business factoring agreements can be pretty flexible, and you should always try to negotiate for the best terms possible before selecting your factoring partner. With 1st Commercial Credit, you can be sure you will be obtaining the most flexible and accessible terms for your company, and we will always have your business's best interest.
With Payroll and Business Expenses, Cash Is a Major Concern For Staffing Agencies
Meeting and fulfilling payroll obligations is a huge challenge for many businesses. Payroll funding offers a financial tool that allows companies to sell their invoices to make payroll each period. When dealing with slow-paying customers, the situation can threaten your payroll and negatively impact your cash flow. Unless you have a backup funding plan, you risk keeping your business afloat.
1st Commercial Credit provides various financial services that give small businesses the ability to solve their cash flow issues. We help business owners maintain a consistent and healthy cash flow by advancing a high percentage of their unpaid invoices so owners can take care of their employees. We finance businesses of all sizes, stages, and many sectors by securing payroll funding through factoring services. If financial struggles in your industry prevent you from paying your employees on time each period, 1st Commercial Credit can help.
1st Commercial Credit is a payroll funding for staffing agencies with extensive experience financing companies going through cash flow shortages. We offer cash advances, and unlike bank loans, factoring provides competitive and flexible financing rates for companies in Montgomery.
Payroll financing offers an essential service to small businesses looking for a reliable funding source to fulfill payroll while improving financial stability. We do this by transforming your business assets into immediate cash to improve your business situation. Companies using our factoring services are more profitable, efficient, and productive as a whole. More importantly, the constant stress of making sure your employees are paid will no longer be a problem.
Business owners often struggle to expand their businesses because they don't want to risk running out of cash reserves because of payroll. Our financing solutions are fast and approval for staffing agency loans takes place within a few working days, and financing can begin within a couple of hours of receiving the invoice.
Are Your Government Receivables Hurting Your Cash Flow?
More often than not, early-stage and fast-growing companies need cash flow and liquidity but think they won’t qualify for receivables financing because they have government contracts. At 1st Commercial Credit, we can fund federal, state, and municipal receivables. One problem with government contracts is that they will use up all your cash to provide products or services.
In addition, they take a long time to pay your invoice because of bureaucratic processes and approvals. Another issue is that not all lenders understand the nuances of financing government receivables and assignment of claims and are reluctant to lend against these receivables. 1st Commercial Credit understands government payable procedures and knows precisely how to work with them to collect payment.
Factoring government receivables offers many benefits. One of them is that once approved, the client can sell invoices whenever they want to, and there are no monthly minimums. This financing alternative saves business owners a lot of money and gives them control and flexibility, which all business owners like. Stop letting financing get in the way of taking advantage of new opportunities with government contracts – they can result in sales growth and a boost to your bottom line.
1st Commercial Credit provides government receivables financing for companies across Montgomery. Having the government as clients can give you a boost in contracts and revenue. Still, they can also put your business in a tough cash flow situation at times. Companies in this sector still need to pay wages, overhead costs, and materials. Unfortunately, your business won’t be receiving any payment for those efforts until months after the work has been completed. Business owners will no longer have to stress because this is a situation we are used to working with and have various solutions for your business.
Steps To Get Your Account Up And Funded With Our Accounts Receivable Financing Program
Accounts receivable financing is a financing agreement between a business and a specialized lending company in which a business owner receives working capital for a portion of its accounts receivable. These types of receivable financing agreements can be designed in various ways, but the most common is a loan or an asset sale.
A company's accounts receivable are assets equal to the unpaid balances of invoices billed to clients who have not yet paid them. These receivables are reported on the business's balance sheet as assets and highly liquid ones that lenders consider for financing.
Many companies in Montgomery see accounts receivable as a burden because they are expected to be paid but require a process of collections and payment terms that need to be fulfilled before they can be converted into cash. The good news is that 1st Commercial Credit can step in and help companies put their receivables to work and exchange them for immediate cash that can be used as needed. Factoring companies will work with you to structure accounts receivable financing agreements that fit your business needs and goals.
Factoring companies in Alabama such as 1st Commercial Credit, finance receivables for businesses to generate immediate, accessible cash while waiting for payment from customers. The financing process with 1st Commercial looks like this:
- The company selling the receivables gets anywhere from 80-97% of the total value of the factored invoices within 24 hours of approval and verification.
- 1st Commercial Credit keeps the remaining percentage as security until full payment is received for the receivables from your customers.
- 1st Commercial Credit collects the receivables after waiting a period of 30 to 90 days.
- When payment is collected, 1st Commercial Credit will pay you (the seller of the receivables) the remaining amount after subtracting a small factoring fee that typically ranges between 1% to 3%.
The factoring fee is determined by the quality of the receivables and the length of time it takes to obtain payment. For example, if payers make payments within one month, the company that factors receivables may charge a small 1% fee. In contrast, slow-paying customers who take 60 days or more may cause the factoring fee to be around 2% or 3%.
Need Funding For Your Company In Montgomery, Alabama?
1st Commercial Credit Provides Instant Funding For Small And Large Trucking Businesses
Small and large trucking businesses encounter many unique challenges, and lenders must be familiar with the specific needs of each business to provide the best service and financing options. 1st Commercial Credit understands these challenges and can create unique solutions to help trucking companies fulfill their financing needs. 1st Commercial Credit is a freight factoring trucking company that has been involved with the transportation and trucking industry for many years and has a comprehensive understanding of what it takes to help businesses move the freight from one location to the customer. The challenges many small trucking fleets face are recurring and costly. Some of these ongoing costs that require funding include vehicle maintenance, permits, and special equipment.
Waiting for invoices to be paid will not get you the cash you need to pay the bills. On the contrary, a specialized lender like 1st Commercial Credit can provide a consistent and reliable cash flow to meet your customer deadlines and continue growing your business. 1st Commercial Credit is a trucking financing company servicing all transportation-related industries in the USA and Canada. We use invoice financing to bring a reliable and attainable business line of credit to small trucking businesses needing funding.
We provide factoring services to various companies in the trucking industry, including refrigerated freight, auto carriers, air freight, long haul, flatbed hauls, freight brokers, and local delivery.
1st Commercial Credit also specializes in semi-truck financing programs which is a financing program that will provide trucking businesses with the working capital needed to purchase a commercial truck. Discovering different truck financing options for transportation and logistics companies can bring the resources necessary to address the main challenges your trucking company faces. 1st Commercial Credit provides financing options for all types of semi-trucks. Some approval considerations will depend on condition, down payment, and monthly revenue for specific trucks. To find the best financing program, you can visit our site or give us a call so we can answer all your questions.
What Is Montgomery Known For?
Montgomery is the capital and the second-largest city in Alabama, with a population of 205,764. Montgomery is famously known for its many historical and cultural landmarks and events, including Alabama State Capitol, Dexter Avenue King Memorial Church, First White House of the Confederacy, Alabama War Memorial, and Alabama Shakespeare Theater. The city attracts many visitors each year and is the home of Gunter Air Force Bases and Maxwell.
Economy Of Montgomery
Montgomery's industries continue experiencing tremendous growth and development, establishing Alabama as one of the nation's top five best business climates. Today, Montgomery is known for being rich in history yet clearly focused on the future. Montgomery is the epitome of economic prosperity and a showplace for southern hospitality, beautiful weather, and high-tech jobs. Some of the key industries in Montgomery include aerospace and aviation, agricultural products and food production, automotive, bioscience, chemicals, forestry products, and metal and advanced materials.
