1st Commercial Credit Hits $20 Million Milestone in Purchase Order Financing Transactions

AUSTIN, Texas, December 20, 2023 - 1st Commercial Credit, LLC is proud to announce the achievement of a significant milestone, surpassing $20 million in Purchase Order Funding transactions. This accomplishment underscores the company's dedication to providing adaptable financial solutions to support its clients.

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Raul Esqueda, President of 1st Commercial Credit, LLC expressed his enthusiasm, stating, "I am delighted by the success of our transactional funding program, specifically tailored for our existing factoring clients. Our financial instruments were meticulously designed with adaptability in mind, allowing us to customize them to meet our customers' needs effectively. The In-Transit Inventory Finance program, particularly favored by importers, offers funding to sustain supplier payments for subsequent orders. A significant portion of our clients is currently experiencing growth, and traditional invoice factoring may not adequately address their evolving supply chain requirements. In 2023, our typical funded transaction averaged $143k, with nearly 30% designated for covering importation fees and containerized freight charges.”

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1st Commercial Credit offers additional financial services, such as Trade Payable and Inventory Financing, which is typically available to financially robust, credit-insurable large companies. Existing factoring clients can take advantage of this program to pay suppliers early or finance payables and deduct the amount from factoring proceeds upon sale. 

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For staffing and service-related companies facing cash flow gaps due to monthly invoicing requirements, 1st Commercial Credit provides Payroll Funding or Work in Process Financing. This service bridges the gap between monthly invoice factoring and payroll, offering a lifeline to companies with less frequent invoicing cycles.

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Please note that Purchase Order Financing is not available as a standalone service. Clients must factor all accounts before considering P.O. finance or Trade Payable Financing.

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Typical Underwriting Parameters for PO Funding

1. Existing clients with a minimum 6-month history and average monthly transactions of at least $150,000.
2. Must maintain good standing, profitability, and meet all rent, vendor, and tax obligations.
3. No outstanding MCA (Merchant Cash Advance) loan commitments.
4. Must possess viable purchase orders from creditworthy customers, with expiration dates within reach of delivery.
5. Consistent weekly revenue from diverse clients, avoiding concentration risk.
6. Maintain a minimum profit margin of 25%.
7. Limited to USA-based companies; PO Funding not available in CA, NY, and LA.

For more information on Purchase Order Financing, please visit 1^st Commercial Credit’s Purchase Order Finance Program.