We Deliver The FUNDS
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A Factoring Company Funding Lexington, Kentucky
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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Is Your Lexington (KT) Company Looking For Flexible Approvals on Asset Based Lending?
Asset-based lending is a kind of loan secured by various types of collateral. Many businesses use asset-based loans, typically secured by accounts receivable, inventory, equipment, or real estate. Typically banks approve loans based on a proven record of predictable cash flow and on many other requirements. On the other hand, specialized lenders offer flexible approvals on asset based lending and rely on the receivables as coverage for repayment. This often enables ABL lenders to approve an asset-based loan where other traditional forms of lending would not. Most ABL's are structured to work as revolving lines of credit, allowing the company to borrow as much as needed and as often as needed. Having a revolving line of credit allows a business to access cash repeatedly without opening new loans, saving time and money.
Some of the benefits of asset-based lending include:
- Borrowing Capacity Growth
- Flexibility in Use of Proceeds
- Faster Approval Times
- For Companies with High Debt-to-Worth Ratios
- Improved Cash Flow
- Loan Structure Flexibility
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Asset-based loans are a great financing alternative for companies that are growing rapidly or highly leveraged, undercapitalized, in turnaround or recovery cycles, or otherwise not bankable. Companies with cash tied up in inventory, raw material, or finished goods or that experience seasonality or significant gaps in cash flow are also good candidates for asset-based loans. A specialized lender can finance the inventory, accounts receivable, equipment, and real estate to help the manufacturer improve cash flow and working capital.
Some of the industries taking advantage of ABL's in Lexington include:
- Manufacturing
- Staffing
- Agriculture
- Distribution
- Healthcare
- Logistics
- Transportation
- Business Services
- And many more!
Invoice Factoring & Receivable Finance for the Oilfield Service Industry
The oil and gas industry continues experiencing growth all across the nation, fueling great opportunities for all companies in this sector. However, with rapid growth and increased demand, financial hardship can ensue for some smaller businesses in the industry. Most smaller companies have a tough time obtaining financing, which can cause their operations and entire business to fail.
We make invoice factoring for oilfield companies easy as we provide the most reliable and cost-effective accounts receivable loans. Most clients will pay their invoices in 30 to 90 days, and when companies do not plan for this, it can result in serious financial problems.
1st Commercial Credit offers flexible invoice financing and can easily qualify for our services if your customers have good credit. The fees associated with our factoring services will depend on several factors, including:
- The volume of the monthly receivables to factor
- The size of invoices
- Type of industry
- The credit status of your clients
- The length of time to get payment from customers invoices
On average oil and gas factoring percentages can be around 1% to 4%. As a business owner looking for the best possible deal, it is a good idea to ask several factoring companies for quotes to get the lowest factoring fees for your business.
Invoice financing can provide your Lexington business with the utmost financial flexibility and tools to take on new customers without worrying about slow-paying customers and cash flow shortages. Invoice factoring is the best alternative for businesses looking to alleviate different types of financial issues. It is crucial to mention that the qualifications for factoring are considerably more accessible than with any other kind of financing.
To have a better idea of whether or not your company would be eligible for any of our funding programs, here are a few of the main prerequisites:
- Your customers must have good credit
- Your invoices must be free of liens
- Need to have good invoicing practices
- Tax issues must be manageable
- No open bankruptcies
1stCC Provides Receivable Financing For Construction Projects
Owning and running a business in construction can be challenging at times. Things such as ordering materials, supplies, adhering to multiple projects and strict timelines, hiring subcontractors, and many other things can deplete a lot of capital. In addition, construction companies have many expenses and financial obligations. Progress and growth can be interrupted if not enough revenue comes in. Bills can’t be paid, and the company can lose employees if it can’t cover payroll each week. Loans are not effective and can even complicate things more in the long run. The short-term influx of cash from a bank loan is only good until the business needs it again, with the added burden of debt. Additionally, loans involve a time-consuming process that doesn’t work for most construction companies that need capital quickly to keep projects on track.
Accounts receivable financing offers a debt-free and fast solution that helps improve the finances of construction companies. Unpaid invoices can be turned into quick cash in 24 hours or less, giving construction companies the funds to complete projects, pay financial obligations, and grow their operations. Our financing services help automate the collection process, freeing up resources so business owners can focus on their business instead of chasing payments on overdue invoices. Receivable financing is a fast and straightforward process. It works by delivering a service for which an invoice is generated with a copy going to the customer. Another copy is submitted to the specialized lender for financing and converted to fast cash. AR financing is an exchange of assets for capital, where the invoices are considered collateral, so there is no debt placed on the books. The improved cash flow can be used for a variety of things including, getting more clients, acquiring new equipment, hiring more workers, purchasing supplies, and anything else your construction company might need.
Our financing solution for construction companies gives a cash advance in exchange for your outstanding receivables. Once a company is approved for construction factoring, it gets immediate access to funds on unpaid invoices, typically within a few business days. With invoice factoring, construction businesses can improve cash flow to begin the next phase in their projects or start a new project entirely. Invoice factoring is suitable for any construction company or independent contractor. Regardless of your specialty (landscaping, paving, roofing, site clean-up, etc.), any contracting company issuing invoices with net terms between 14 to 90 days is eligible for invoice factoring.
One of the significant advantages of construction invoice factoring is ideal for companies that may not qualify for other types of financing or loans or companies that need funds faster than other traditional forms of financing can offer. If your Lexington business is faced with immediate expenses and has been turned down by conventional forms of financing, then construction invoice factoring might make sense for you. Aside from the day-to-day responsibilities, business owners often find that extra cash can help them stay in the competition by funding faster business growth.
For example, you might use your additional funds for:
- Hiring new employees to complete jobs faster or take on more and bigger projects
- Buying new equipment and vehicles
- Expanding to a new location
- Investing in marketing expenses
Need Cash To Keep Up With Your Produce Demand?
Farming and agriculture businesses constantly need additional working capital to support their production and take on more customer orders. These agriculture-related businesses need a fast solution to keep up with growth. You can now put all of those stagnant unpaid invoices that are causing cash flow problems to work.
A factoring company in Kentucky, such as 1st Commercial Credit, takes those outstanding invoices and turns them into cash, so business owners can use them to finance growth and invest it in other areas. If you have a lot of unpaid accounts receivable, then farm factoring could be the ideal solution and the key to the future success of your company. 1st Commercial Credit is an experienced lending company providing the farming industry with a line of credit based on receivables. As your crops grow, 1st Commercial Credit delivers the funds!
In order to make everything work smoothly, farms require extensive financing. Yet agriculture is a sector often dealing with slim margins, and as a seasonal business, many traditional financing options won’t be ready to lend to these businesses. Agriculture invoice factoring is an alternative to get the capital needed to harvest and ship crops while meeting the legal stipulations established by the Perishable Agricultural Commodities Act (PACA). PACA, intended to protect suppliers and sellers of perishable agricultural products, makes farm financing a bit more complex. Still, even though it could represent a bigger challenge, factoring companies are willing to work with the agriculture industry to help them get the capital they need to run and grow their operations.
Agribusiness owners know how crucial expediency is for business success. Failure to deliver promptly could result in considerable losses as no one will purchase spoiled crops. The good news is that with agriculture factoring, the setup process is completed in a few hours. In most cases, you can have access to funds in a matter of days rather than weeks.
Need Funding For Your Company In Lexington, Kentucky?
What is Lexington Known For?
Lexington is a crucial economic and cultural center located in Bluegrass Country. The city is also home to the University of Kentucky and is globally known for its horse breeding, which has earned Lexington the title of "horse capital of the world." All around the city, it is common to see horse paddocks enclosed by white fences. Besides the many equestrian-related things Lexington offers, it also has numerous historical, natural, and cultural attractions. Some places and attractions to visit in Lexington include Mary Todd Lincoln House, The Kentucky Theatre, The Aviation Museum of Kentucky, Fort Boonesborough State Park, Raven Run Nature Sanctuary, and Waveland State Historic Site.
Economy Of Lexington
Lexington serves as a healthcare, retail, and cultural center for both Eastern and Central Kentucky. So whether you're seeking employment or looking to start or relocate a business, Lexington is among the top cities in the nation to do just that. Lexington was recently ranked among the Top 25 High-Tech Hotspots by The Atlantic Cities and #7 in Forbes's Best Mid-Sized Cities for Jobs. Lexington and the surrounding area's stable and robust economy are mainly due to the diversification of employment opportunities.
Employment is dispersed among education and healthcare, manufacturing, government, retail trade, professional and business services, and construction. Because of all these diverse opportunities, Lexington's unemployment rate is typically lower than the rest of the state and nation. Toyota Motor Manufacturing, The University of Kentucky, Fayette County Public Schools, and Eastern Kentucky University are significant employers in the Lexington area. Some leading manufactured products include automobiles, automobile parts, peanut butter, heating, air conditioning equipment, cutting tools, paper cups and products, sunroofs, software, and military equipment. Because of the abundance of colleges and universities in the area, Lexington also has one of America's "Most Educated Workforces."
Other key industries in Lexington include:
- Automotive
- AgriTech
- Aerospace
- Primary Metals
- Food & Beverage
- Logistics
- Chemicals
- Plastics & Rubber
