1st Commercial Credit Introduces 2nd Position Factoring Behind Traditional Banks

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1st Commercial Credit, LLC, a trusted factoring company with over 22 years of experience, is excited to introduce its 2nd Position Factoring program. This innovative financing solution is tailored for businesses with an existing bank term loan that require additional working capital without disrupting their primary lending relationship.

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Unlike traditional subordinated financing, 1st Commercial Credit’s 2nd Position Factoring enables businesses to leverage their accounts receivable while maintaining their existing bank loan. This approach provides immediate liquidity, improved cash flow, and the ability to scale—without incurring additional debt or restrictive covenants. Since invoice factoring is a buyer/seller transaction rather than a loan, it serves as a flexible alternative to conventional lending. Through this process, 1st Commercial Credit transitions receivable assets into cash assets via a discounted sale, allowing businesses to unlock capital efficiently. The debtors will be required to pay 1^st Commercial Credit for the purchased Invoices.

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Important Note: Businesses with bank lines of credit or Senior lenders that require (Or Noticed) account debtors to remit payments to a dedicated lockbox do not qualify for this factoring program. Eligible businesses must be in good standing, profitable, and experiencing growth. Additionally, SBA Loans issued under the Economic Injury Disaster Loan (EIDL) program have been subordinated, and 1st Commercial Credit will initiate funding before the SBA subordination process is completed.

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"Even with a bank term loan in place, many businesses still struggle with cash flow," said Raul Esqueda, President of 1st Commercial Credit.

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"Our 2nd Position Factoring program provides a seamless solution by delivering additional working capital without disrupting the bank’s security interest. Too often, business owners are denied factoring due to an existing senior bank line and end up resorting to high-cost Merchant Cash Advance loans. Our program offers a smarter alternative, ensuring access to the funds they need without excessive costs or additional debt."

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Key Benefits of 2nd Position Factoring with 1st Commercial Credit

• Non-Subordinated Financing – Works alongside existing bank lines without requiring subordination from the bank.
• ‍Flexible Working Capital – Unlocks cash tied up in receivables for operational expenses and growth.
  
• Fast Approval & Funding – Businesses can access funds quickly without lengthy underwriting.
  
• ‍No Additional Debt – Factoring is based on receivables, not loans, keeping liabilities off the balance sheet.

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This program is particularly beneficial for companies in manufacturing, staffing, distribution, and transportation that require supplemental financing beyond traditional bank credit lines.

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It’s also great news for bankers looking to help their clients access additional capital while maintaining their existing bank loans without requiring subordination. 1st Commercial Credit’s 2nd Position Factoring offers a seamless, non-subordinated solution that unlocks working capital and supports business growth.

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For more information about 1st Commercial Credit’s 2nd Position Factoring program, visit 1^st Commercial Credit or contact us at 1-800-876-6071.