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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 3-5 days.
Learn more1st Commercial Credit funds Dallas, TX-based businesses by offering accounts receivable factoring services. Additional cash flow solutions including purchase order financing and trade payable finance.
Accounts receivable factoring is also called invoice factoring and is a financial transaction in which a business sells its accounts receivable to a lending company like 1st Commercial Credit, that specializes in buying receivables at a discount.
Companies turning to this type of financing alternative receive immediate cash rather than having to wait for the entire duration of the credit terms offered to their clients. With access to enough money from cash flow lending, businesses in Dallas can build up their cash balance and pay any existing debt and pending obligations. Factoring companies in Dallas will help your business free up working capital tied to unpaid receivables. They will also take responsibility for the risk associated with those receivables and will chase payment directly from your clients if needed.
The Dallas and Fort Worth area has the largest number of corporate headquarters in the country. This city is home to more than 10,000 corporate headquarters and various fortune 500 companies. Additionally, businesses all across the U.S. are moving to the business-friendly state of Texas, into cities like Dallas, Austin, and Houston.
This business influx is because the economic growth in Dallas is ideal for small businesses and startups. Dallas also has a very diverse economy with lots of activity in high-tech areas of software and communications. As industries in Dallas are experiencing unprecedented growth, some businesses are growing faster than their cash flow and need financing. Unfortunately, most small companies don’t have the credit or financial history to qualify for traditional bank lending. In this case, accounts receivable factoring is the ideal solution and an excellent financial tool for small to medium-sized B2B businesses.
Invoice factoring helps your cash flow, and it’s much easier to qualify and obtain because the funding decision will be based on the creditworthiness of your customers. Even if your personal credit is bad, a loan on receivables is still possible because a Dallas factoring company will focus on your receivables for collateral.
Sustaining healthy cash flow is the key to surviving and thriving in a stalled economy. Factoring companies offer invoice factoring services that give businesses of all sizes access to cash without the burden of taking out high-interest loans. Every business operator should understand what a factoring company does and how its services can give your business the boost that it needs to weather a financial storm or seize a great opportunity.
Instead of waiting weeks or months for invoice payments, factoring gives business owners a cash advance on their qualifying invoices that can be used for pressing business needs and expenses. This financial solution is ideal for businesses in Dallas with long net terms and ongoing operational costs. It can also help take care of unexpected expenses that come up. Businesses can factor in their invoices as soon as they provide services or goods to creditworthy customers giving them the freedom and financial flexibility a bank won’t. The process of factoring receivables is offered by specialized factoring companies that will work with you to structure a financing agreement that fits your business goals and needs.
Many companies only need a certain amount of funding to get through temporary cash flow shortfalls. Even if they meet a bank’s stringent qualifications, taking out loans isn’t necessarily the best solution for them. Invoice factoring gives you the flexibility to get the cash you need quickly without having a loan and interest to repay.
Unlike trade credit that limits you to purchases from specific suppliers, invoice factoring gives you cash to use for any business expense. Some reputable suppliers offer discounts to businesses that pay for goods early. You can use cash advances from invoice factoring to avoid trade credit late penalties and even take advantage of early payment discounts from your suppliers.
A factoring company (or accounts receivable factoring) converts invoices sold on credit terms to immediate working capital at a discount. It has become a simple, fast and easy way to access business cash flow. In comparison with a traditional bank loan, a company that factors receivables has a quicker approval process.
1st Commercial Credit is a factoring company that specializes in evaluating accounts receivable and can make a prompt approval decision. The documentation requirements are not as lengthy, and the main requirement is that an applicant has invoices for work or orders that have already been satisfied. It also helps to have creditworthy customers. As long as a business has been in operation, meets revenue requirements, and is free of liens or legal issues, approval is likelier.
Flexibility is one of the major benefits of factoring. Factoring is a great option for small businesses that frequently get rejected by banks.
Banks look at the creditworthiness of small businesses and their owners to determine whether or not to loan money to the business. Additionally, banks will use your company’s credit history to establish loan amounts and interest rates. In contrast, your company doesn’t need a lengthy credit history to qualify for invoice factoring.
When you use invoice factoring services, the amount of money that you get is limited only by the number of qualified invoices that you’re willing to sell to the factoring company. There are no interest payments to make because invoice factoring doesn’t create loans.
Bank loans on balance sheets can make even established businesses look overextended. Large companies use invoice factoring services to weather short-term cash flow issues without placing more debt on their balance sheets. Invoice factoring not only makes these businesses more attractive to potential investors, but it allows them to keep their options open if they need bank loans for future large-scale initiatives.
Dallas is a place of limitless opportunity with a unique history and culture, infused by productivity and growing prosperity for businesses and careers in today's most promising industry sectors.
1st Commercial Credit has all the financial resources to help Dallas- based businesses. We work with nationwide and foreign businesses and help finance their transactions with Dallas buyers and sellers. We provide unique financial cash flow solutions to fund the supply chain that may include invoice factoring, purchase order financing and trade payable finance programs.
Companies in Dallas can trust 1st Commercial Credit and find a dependable source of funding in us. Our staff will work together to provide the best customer service and attend to all your business needs. Your company will be able to grow and continue taking on projects without ever having to worry about cash flow issues again. This type of partnership will be extremely beneficial in many ways and will also differentiate your business from the competition.
When it comes to financing your accounts receivable, we are a flexible Texas factoring company. In just 3 to 5 working days, small to large businesses may pledge their receivables and get a line of credit using their unpaid bills as collateral.
Top Industries that are dominating the Dallas economy.
We can finance receivables for all major industries, including defense, transportation, information technology and data, life sciences, semiconductors, telecommunications, and processing.
Dallas maintains its edge as a leading distribution center of the Southwest with a dominant trucking and mid-continent transportation industry whose carriers offer direct service to all major destinations in the United States.
We serve all major industries with unique supply chain finance programs that include receivable factoring, purchase order funding and accounts payable discounting programs.
Making funds available to businesses when they need them is the driving force behind factoring companies. Many businesses sell products and services to customers and allow them to pay for their purchases 30 or 90 days after the offerings are delivered. Instead of waiting for customers to pay invoices in that period of time, business owners can sell the invoices at a discounted rate to a factoring company and get cash early.
Factoring companies buy discounted invoices at rates that are based mainly on the creditworthiness of their clients’ customers. After establishing their fee rates, factoring companies offer their clients cash advances that are up to 95 percent of the value of the sold invoices. The balances of the invoices are paid to business operators minus all fees when the factoring company receives full payments for the invoices.
Factoring companies also determine fee rates by the volume of invoices that a customer wants to sell. A business that has multiple invoices to factor will be rewarded with lower fee rates than those that only want to factor single invoices per transaction.
Besides obtaining bank loans for working capital, some businesses rely on trade credit from their suppliers to keep their operations going. Trade credit is a privilege that suppliers extend to their customers which allows them to make payments 30, 60, or even 90 days after products are delivered. This gives some businesses time to sell the products to their customers for a profit while repaying vendors on time.
While trade credit is touted as good for maintaining long-term relationships with valuable suppliers, you’ll only realize those benefits if you’re able to pay back the suppliers on time. Suppliers stipulate high fees and stiff penalties for late-paying customers. If an emergency arises and you’re unable to pay multiple trade credit goods on time, you’ll incur fees that can quickly erode profit margins. Your long-term goals to expand into new markets or extend your product offerings in an existing one can be brought to a screeching halt with a batch of late payments on trade credit items.
One of the best things about running your small business is the ability to quickly respond to your ideal customers’ needs and interests. When adapting to changes in your market, it’s often necessary to change your vendor line up. If your company is dependent on trade credit from a particular vendor, you’ll need to quickly try to find a similar deal with a new supplier.
Dependency on trade credit also gives lending suppliers more power at the negotiating table. If you have the ability to pay on time or early, you can negotiate discounts with suppliers. This is especially beneficial if you plan to purchase products from them in large quantities.
Invoice factoring allows you to raise cash when you need it and use the funds to buy goods from any supplier. You don’t have to worry about not getting favorable trade credit terms from your sought-after supplier. You can do business with the supplier that best meets your product needs and those of your customers.
Invoice factoring services offer great cash flow solutions to a variety of companies. However, businesses that operate in certain industries use invoice factoring more than others. Construction contractors, staffing agencies, and manufacturing companies often rely on invoice factoring to meet cash flow needs.
What makes these and other companies ideal candidates for invoice factoring services? Factoring companies offer invoice factoring to organizations that work on business-to-business models rather than business-to-consumer ones. Companies such as construction contractors and staffing agencies often experience long payment cycles that put a strain on business operations. Invoice factoring saves the day with quick access to cash to pay for materials, marketing services, and salaries.
Factoring companies prefer offering invoice factoring to companies that have well-known business customers. Manufacturing outlets that range from electronics to upscale clothing makers all have note-worthy business clients.
Other criteria that factoring companies use to gauge if a company is fit for their invoice factoring services looks at monthly sales and the location of the business. Many factoring companies limit their invoice factoring service offerings to organizations that have at least $5,000 in monthly sales. Additionally, most U.S. factoring companies will only offer invoice factoring services to other U.S. businesses.
Dallas offers many competitive advantages for living and working. Dallas businesses have access to incredible talent, including a workforce of over 3.7 million. Dallas is also home to 22 Fortune 500 companies and over 250 headquarters, each employing more than 1,000 people globally. DFW international airport and Dallas Love Field help position the city less than 3.5 hours from key business centers such as Los Angeles, New York, Mexico City, Toronto, Atlanta, and Chicago. The Dallas government is also a huge promotor and pushes the economy by being pro-development and maintaining a great plan and economic development strategy to continue encouraging business and economic growth in Dallas.
100 Crescent Ct Suite 700
Dallas, TX 75201
Email: Dallas Office
Call: +1 (214) 623-5579
Directions: Google Maps →
1st Commercial Credit is a company factoring receivables for Texas and various cities including:
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