We Deliver The FUNDS
0.69% to 1.59%
.png)
A Factoring Company Funding Fort Wayne, Indiana
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.
learn more
How Do We Help Fort Wayne (IN) Businesses Generate More Cash Flow?
Accounts receivable financing involves a financing agreement between a business and an invoice financing company in which a business receives immediate cash in exchange for its accounts receivable. These financing agreements can be constructed in various ways, most commonly as loans or asset sales. Account receivables are a company's assets reported on the business's balance sheet equal to the unpaid invoices billed to clients. The great news is that accounts receivable are highly liquid assets that third-party lenders consider for financing.
Many companies in Indiana consider accounts receivable a burden because they can be converted into cash but to do so they require a long process of collections and payment terms that need to be completed first. 1st Commercial Credit is an experienced lending company ready to step in and help companies put their receivables to work for immediate cash that can be used today. The companies offering these services will work with you to structure accounts receivable financing agreements to fit your business needs and goals.
Financing receivables generates a solution for businesses in need of immediate cash while waiting for payment from customers.
The financing process with 1st Commercial Credit looks like this:
1. The company selling receivables gets 80-97% of the total value of the invoices within 24 hours of approval and verification.
2. 1st Commercial Credit keeps the remaining percentage as security until payment is received for the invoices (receivables).
.png)
.jpg)
.jpg)
.jpg)
.jpg)
3. 1st Commercial Credit collects the receivables after waiting a period of 30 to 90 days.
4. When payment is collected, we 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 quality of the receivables and the length of time it takes to obtain payment will determine the cost of the factoring fee. For example, if payers make payments within one month or less, the factoring fee could be 1%. In contrast, slow-paying customers who take 60 days or more may cause the factoring fee to be around 2% or 3%.
Reasons To Consider Accounts Receivables Financing As Your Cash Flow Solution
Around 81% of small businesses will fail due to cash flow problems. There are many things to consider when it comes to cash flow management. The best and easiest method to improve cash flow fast is factoring in your receivables with cash flow lenders. Here are some reasons to consider financing your business's invoices.
Get paid sooner
You will be paid up front for those invoices when you sell your invoices to a factoring company like 1stCC. You no longer wait 30, 60, or 90 days to receive payments from customers, thereby increasing your cash flow and making it more reliable.
Have unlimited capital
AR financing is the only source of financing that grows proportionally with your sales, enabling you to meet increasing cash flow demands consistently. As you grow your business, the funds you receive from factoring grow along with it.
Factoring is quick and easy
Initial approval and verification processes don't involve the lengthy, detailed credit checks typical banks require, and funding can often be given within 48 hours. After that, ongoing funding is usually even faster after invoice submission. This means you can have access to funds in as little as one day after invoicing a customer.
Build or strengthen business credit
Getting paid faster on your invoices improves cash flow, allowing you to meet your business obligations on time. With adequate cash flow and by paying your bills on time, you will build a good credit rating or improve an existing one.
Detailed reports
1st Commercial Credit will provide you with detailed reports on the status of your receivables, which helps you better manage your business and cash flow. This can also help you save time and focus on other crucial aspects of your business.
Retain equity
Some forms of funding require you to give up a portion of the equity in your company in exchange for that funding or pledge extensive collateral. You don't have to do either with accounts receivable financing, keeping control, and ownership of your company and assets.
No debt to repay
Factoring isn't a loan, so you don't acquire debt when you factor in your invoices.
Help with back-office functions and admin
We can help you explore solutions and determine if accounts receivable financing works for your company. In addition, we will also offer our help with the processing of your invoices and billing.
With Payroll And Business Expenses, Cash Is a Major Concern For Staffing Agencies
With our payroll services, a firm can expand its talent base by bringing employees to work without the financial and administrative burden. 1st Commercial Credit is responsible for all payroll and administrative functions, including hours, recordkeeping, tax withholding, unemployment insurance, and other payroll-related functions.
A payroll funding company provides a financial solution to get instant cash flow for staffing agencies in Fort Wayne. To continue running and managing operations, these agencies sell their unpaid receivables to a factoring company in exchange for an advance. A staffing firm with a dependable and constant source for funds will have the ability to grow and continue taking on contracts without worrying about cash flow shortages. Payroll funding will give you the confidence of knowing your company can make payroll each period, taking a massive burden off your shoulders. 1st Commercial Credit’s payroll solutions will provide you with the financial freedom to focus on growing your agency, invest in marketing efforts, filling orders, and achieving the goals for the future.
Cash flow is vital for staffing agencies in Fort Wayne, and they can now use their accounts receivable to get the cash needed to pay employees. We can eliminate the burden and stress of waiting for those extended payment terms and risking losing your talent and passing on expanding and recruiting opportunities. Payroll financing allows a company to remain flexible and competitive in the staffing industry.
This is a sector that faces considerable uncertainty from time to time. Our services are also fully customized to your business needs. Staffing agency loans allow you to dictate the terms of the engagement, including payments, PTO, benefits, length of the contract, and more.
Some of the benefits of payroll services include:
- Cost control. Release costs and legal risks associated with staffing firms while accessing the necessary talent
- Bring back laid-off employees. You can bring back qualified employees that were let go due to business declines.
- Have the people to take on projects and contracts. Hire experts such as consultants, former employees, or specialists for low-risk, short-term engagements
- Employee evaluation. Select and evaluate new employees on the job before a formal offer of employment
Need Funding For Your Company In Fort Wayne, Indiana?
We Have Experience Dealing With Specific Cash Flow Issues That The Healthcare Industry Faces
The healthcare industry continues experiencing unprecedented growth in Fort Wayne. Businesses providing medical services, such as doctors, diagnostic centers, and medical equipment providers, serve many patients daily. Unfortunately, these companies experience some of the slowest customers, and, in many cases, insurance claims take even longer to pay.
The increasing number of patients, lower per-claim revenues, and longer payment times often lead to cash flow issues. Even though most healthcare companies will face this problem from time to time, the key is to plan for it. There are two biggest challenges to cash flow for health care providers. One is the insurance payers, and the other is waiting for patients to make their out-of-pocket payments. Over time, they accumulate, and that can make your healthcare-related business struggle and be more dependent on credit to meet payroll, purchase supplies, and continue running operations. Filing a claim and waiting for the insurance company to work through the approval process can be a long wait, and that's where these cash flow challenges can be beyond your control.
What Can Medical Companies Do To Manage These Cash Flow Challenges?
The cash flow situation for a healthcare company can jeopardize its management and the ability to fund operations and meet financial responsibilities. Therefore, healthcare companies must be able to find a solution to resolve cash flow issues quickly. One incredibly accessible and quick popular solution for cash flow problems is medical receivables financing. This solution helps medical providers with cash flow problems due to slow-paying insurance claims.
Factoring provides:
- Immediate and accessible funding.
- Using your receivables as collateral.
- Enabling you to pay for business expenses.
Accounts receivable in the healthcare industry come primarily from three classes of payors: Medicare, Medicaid, and other payers, consisting of private insurance, managed care, and self-pay. As payors, all of these agree and accept financial responsibility for payment of medical costs incurred by a patient and can therefore be sold to a factoring company for financing. 1st Commercial Credit is an experienced lending company offering factoring to Indiana businesses with simple application and funding processes.
What Is Fort Wayne Known For?
Fort Wayne has more than 200 years of history, and it is the second-largest city in Indiana and the hub of Northeast Indiana. The Fort Wayne Metropolitan Statistical area comprises Allen, Wells, and Whitley counties and has a population of over 430,000. Today, Fort Wayne is the hub of three rivers and a central metropolitan area and continues to progress as corporations and individuals live, thrive, and expand together. Fort Wayne continues to invent, innovate, and progress as a city along with all the industries that call it home.
What Is The Economy Of Fort Wayne?
Fort Wayne has a deep history rooted in innovation and manufacturing. Still, today's economy has diversified into a few key industries, including specialty insurance, vehicles, medical devices and technology, design and craftsmanship, food & beverage, logistics and e-commerce, and advanced materials. Fort Wayne is recognized for offering exceptional quality of life, a competitive business climate, and a talented workforce. Allen County is a wise investment choice for many companies looking to relocate or establish in Indiana.
