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A Factoring Company Funding Portland, Oregon
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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What Is Accounts Receivable Factoring And How Can It Help Portland Businesses?
Accounts receivable factoring may be the solution for those businesses dealing with piles of unpaid customer invoices and can't wait 30 to 90 days for payments to come in. Factoring companies in Oregon provide an alternative form of financing where businesses sell their invoices to a factoring company for a considerable percentage of the invoice as an advance. The factoring company becomes responsible for collecting payment and following up with the customer. After receiving invoice payment, the factoring company pays the business the remainder of the invoice amount, minus the factoring fees.
Receivables factoring allows businesses to quickly access the cash they have earned but haven’t yet received. Since it isn’t a typical loan, it can be a good option for business owners with bad credit or short operating histories.
Factoring companies set prices that vary from factor to factor and are based on several factors, but the main one is the value of the accounts receivable. First, most factoring companies pay a high percentage of the invoice value in advance. Advances vary depending on the industry but can be as high as 97%. After that, a factor might charge from 1-4% of the value of the invoice per month. The longer it takes your customers to make payments, the higher the factoring fee. There are two types of factoring arrangements, recourse factoring, and non-recourse factoring. With recourse factoring, you will have to pay the factoring company if your customer defaults. Non-recourse factoring means that the factoring company accepts the risk associated with nonpayment and assumes those potential losses. Non-recourse factors generally come with higher costs because the factoring company assumes a higher risk.
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To qualify for receivable factoring services, business owners need to have good invoicing practices that detail sales, prices, and payment timelines. Invoices need to have been fully completed and delivered, not in progress. The good news about factoring is that the owner’s credit score doesn’t determine the eligibility for AR factoring. Since lenders earn cash by recovering payment from a businesses’ customers directly and not from the companies themselves, lenders will want to make sure you work with creditworthy customers. This can make factoring an ideal option for companies with bad credit or startups with short credit histories.
Accounts receivable factoring is different from accounts receivable financing, even if they have similar names. Accounts receivable financing (or known as invoice financing) is a type of financing that uses unpaid invoices as collateral. Companies receive financing based on the value of their receivables. Factoring can be more expensive than financing since the factor takes responsibility for collecting on the invoice. In the case of non-recourse factoring, lenders accept the losses if the invoice goes unpaid. With accounts receivable financing, on the other hand, business owners retain all those responsibilities.
1st Commercial Credit is an experienced lender offering financing services for small and medium-sized businesses in Portland. We are a specialized factoring company working with many industries and providing a wide array of financing options. Our factoring rates are accessible, and our application and approval processes are fast and straightforward.
Factoring Benefits We Offer To Portland Companies
Many companies in Portland find traditional financing expensive and challenging to obtain; this is where 1st Commercial Credit can help. The fastest way to access cash upfront is through a factoring company that can provide immediate and simple funding. 1st Commercial Credit can evaluate, approve, and provide financing within 3-5 working days. Accounts receivable factoring is an ideal financial solution to improve cash flow when payments from customers take 30 days or more. Factoring is typically the perfect alternative for your business if:
- You have challenges paying suppliers, managing fixed overhead costs, or having trouble fulfilling payroll each period.
- Your company can't acquire new clients because it can't offer the credit terms clients demand.
- You can't expand your business because you don't have sufficient funds.
Once you have determined that factoring receivables is the right solution for your company, the next step involves evaluating a list of potential factoring companies in Portland to find the best rates and services. When looking for a factoring company, the following are crucial factors to look at:
- Experience is Key
- Understanding The Contract Terms
- Financing Receivables Gives You Cash in Days, Not Weeks or Months
- Receive Your Money Fast and Use It As Needed
Businesses that don't take care of cash flow problems might miss out on many business opportunities, be forced to make late payments, and struggle to fund payroll. Eventually, the business will run out of money and could risk the company's future. Everyday situations causing cash flow shortages commonly include:
- Slow-paying customers.
- Sales on extended credit terms.
- Problems invoicing and collecting.
- Low-profit margins.
Covering business expenses and paying off current debt can be a struggle when the cash going out of a business exceeds the amounts coming in. Invoice factoring solves cash flow issues giving companies the boost they need to excel in a competitive workplace. 1st Commercial Credit is an experienced invoice factoring company with supply chain finance solutions and can evaluate your business situation today and provide a solution.
Other benefits of factoring are:
- Quick and easy access to cash flow
- Building or increasing the company's credit
- Ability to offer better credit terms to clients
- No monthly payments like with a bank loan
- Continuous credit checks are available
- Financing available for new companies and start-ups
Factoring Financing For Manufacturing Businesses In Portland (OR)
Invoice factoring for manufacturing companies is a financing alternative that helps keep your business running and expanding smoothly. The manufacturing industry has its own set of financial challenges, including making payments to workers and suppliers, purchasing new equipment and raw materials, dealing with inventory, additional staff requirements, maintenance, and payments to shipment companies.
To meet these ongoing challenges, manufacturers must have a positive cash flow and adequate liquidity.
Since earnings are primarily stuck in invoices and receivables, it diminishes the manufacturer’s ability to meet the ongoing expenses. This situation challenges can often result in:
- Negative impact on working relationships with employees, shipment companies, and suppliers
- Damaged market reputation
- Increased time to market
- Halted business growth
- Reduced business profits
- Increased employee turnover rate
- Increased risk of bankruptcy
To meet these ongoing challenges, manufacturers must have a positive cash flow and adequate liquidity.
Since earnings are primarily stuck in invoices and receivables, it diminishes the manufacturer’s ability to meet the ongoing expenses. This situation challenges can often result in:
- Negative impact on working relationships with employees, shipment companies, and suppliers
- Damaged market reputation
- Increased time to market
- Halted business growth
- Reduced business profits
- Increased employee turnover rate
- Increased risk of bankruptcy
To meet these challenges, manufacturers often seek traditional bank loans, but many times these types of loans can sometimes create more problems. Using a bank loan can often add to a business’ liability, come with high-interest rates, and have contracts with long-term obligations. In addition, loan application approvals can take weeks which means business owners still have to wait before financing their operations. This situation can also significantly lower business productivity and hinder the ability to take on new business opportunities.
In contrast to a bank loan, with 1st Commercial Credit’s manufacturing factoring programs, there are no interest payments, repayments, or long-term obligations. Our pricing is accessible and straightforward, so you don’t have to worry about hidden fee charges, additional expenses, or surprises. 1st Commercial Credit has provided financing solutions to businesses for more than 18 years and has helped manufacturing startups, and companies in various stages grow their business. Our customer service, professionalism, and quick factoring solutions have helped us earn the trust and respect of many clients in different industries. If your business is looking for a quick financing solution that doesn’t add to your debt and gives the utmost flexibility, you can take advantage of our manufacturing factoring solutions.
Factoring Is A Financing Solution For Companies In The Healthcare Industry Struggling With Cash Flow Issues
The economic impact of the healthcare sector is substantial in Portland. Hospitals help stabilize the population base, invigorate their communities, and contribute immensely to the quality of life. Healthcare-related businesses in Portland need cash flow solutions more than ever and can turn to factoring companies.
One of the main challenges for healthcare-related companies is the long time it takes to get paid. Most medical insurance claims can take anywhere from 30-90 days or more to be paid, creating a considerable cash-flow gap. This issue can affect healthcare businesses of all sizes but especially those growing fast. Factoring healthcare receivables helps companies billing private Medicare, Medicaid, and insurance companies facing cash flow issues due to slow payments. This financing alternative can be used by healthcare providers and medical professionals in all specialties.
Financing companies look at a few things when determining if a business will qualify for healthcare factoring for Portland businesses. The main reason for an initial evaluation is to assess the quality of the receivables considered for the funding base (borrowing base), which will also help determine the advance rate.
Healthcare providers are choosing medical receivable financing to fund their growth and operations. Receivable financing creates reliable cash flow in an unpredictable payment cycle sector. Healthcare factoring can help healthcare providers that bill private insurance or Medicare/Medicaid for medical services. 1st Commercial Credit also offers medical staffing factoring for businesses in Portland.
Need Funding For Your Company In Portland, Oregon?
A Quick Look At The Qualification Requirements
The process to qualify for medical factoring is fast and straightforward. The following requirements should be fulfilled:
- A business must bill Medicaid, Medicare, or an insurance provider
- A company should be billing a minimum amount per month
- A company must be free of liens
- A company should not have serious tax issues
- Have reasonable medical billing procedures in place
We Offer Factoring For Software IT Businesses In Portland
Whether your tech business produces new technologies or provides tech support to clients, slow-paying customers could be affecting your operations. 1st Commercial Credit offers invoice factoring for IT companies and financing software development for companies to help them close the cash flow gaps and strengthen their finances. With available cash, business owners can run operations smoothly and focus on other crucial aspects of the business. Invoice factoring for tech companies is an accessible and fast alternative to traditional financing options. Instead of adding debt to your company's balance sheet with a loan, tech factoring companies will purchase your open invoices and advance you up to 90 % of their total value. You can use the cash to support all areas of your operation while the factor collects directly from your clients. 1st Commercial Credit offers a variety of IT businesses and works with many customers with its factoring solutions.
Some of the companies we finance include:
- Technology startups
- Software developers
- Mobile app and web developers
- Tech hardware producers
- IT consultants
- Manufacturers
- Online Marketing Services
- And many more!
Factoring is a simple solution involving a simple and quick funding process. With a steady source of cash flow, tech companies can remain on the cutting edge of tech trends and succeed in the marketplace.
Account receivable funding gives business owners immediate access to funds for their business needs. We offer fast and easy financing for IT companies with the following advantages:
- Easy application process.
- Update or expand technology
- Conserve working capital
- Financing for new and used IT equipment
- Quick funding
- Funding for small and medium-sized companies
- Financing tailored to your business needs
1st Commercial Credit also provides loans for equipment financing and other types of technology. With our tailored IT financing options, you'll be able to choose how long you would like the IT loan to last. If your operations would benefit from an accessible and reliable funding source, contact us today to take advantage of our financing services. Our IT financing team will be ready when you decide to boost your company's success with newer and better technology and software.
What Is Portland Known For?
Portland, Oregon, is a scenic and vibrant city in the Pacific Northwest. The largest city in the state and it is famous for its vast green spaces, including parks, forests, and breathtaking mountaintops. Portland is great for outdoor lovers, but that’s not all there is to love about this city. It’s also an excellent location offering many great places to shop, eat and drink. Portland is home to fine dining and street food, as well as countless breweries, distilleries, and coffee shops to experience.
Economy Of Portland
Portland’s economy is expected to continue growing over the coming years with an annual growth rate. Portland is among the fastest-growing cities in the nation and ranks high in various categories. This city is a hub for innovation and a workforce talent magnet. Portland also offers the talent, infrastructure, connectivity, global connections, and the most competitive cost of doing business. As a result, this region is ideal for doing business with a high quality of life. Some of the key industries in Portland include:
- High tech
- Manufacturing
- athletic/outdoor apparel
- Healthcare
- Wholesale trade
- Software IT
- Education
