As Your Business Grows
We Deliver The FUNDS
We Deliver The FUNDS
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 moreRunning a freight trucking company takes a lot of work, and it also means you will have a lot of logistics and operational costs. Freight factoring or load factoring helps make the process a bit easier and helps you manage your cash flow.
The first step is to understand what freight factoring is and how your trucking business in Memphis can benefit from using it. The freight and trucking business looks like this: You pick up the goods at location A, deliver them to location B, and the shipper/broker pays your company for that service. The amount you receive minus your delivery costs is your profit. The financial struggle arises when you don’t get paid that profit right away, which is for all transactions.
The industry-standard average is 30 days, and some companies can take up to 90 days or more to pay invoices. That’s a very long time to wait for payment while still running operations and continuing delivering goods. Freight factoring allows you to sell that invoice to a factoring company that, in exchange for a service fee, will pay you for that job immediately and then collect from the shipper or broker directly whenever the payment is finally made.
Essentially freight factoring drastically decreases the time you have to wait for payment for the work you have already done. The process is the following:
More Benefits of Working With Freight Factoring Companies
Freight factoring companies take on some of the accounts receivable functions of your company. They will often invoice brokers directly on your behalf, and the broker pays them, not you. This is why lending companies charge a fee for their service. Freight factoring companies also offer services such as broker credit checks. By having these freight factoring companies collect from the brokers or companies on your behalf, you are freed up to handle other crucial aspects of running your business.
Freight invoice factoring is a convenient and lucrative way to access necessary funds for small and larger companies, whether established or just starting. It takes a lot of the worry, responsibility, and time-consuming tasks off your hands so you can focus on other areas of your business.
We make the trucking factoring process extremely simple and offer various financial services for trucking companies in Memphis. We have designed our programs to streamline cash flow for transportation companies and allow them to cover their expenses and expand their business. Freight factoring companies also offer additional back-office services such as credit checks, invoicing and collections services, fuel discounts, advances, and online reporting.
1st Commercial Credit is an invoice factoring company for manufacturers in Memphis and has the solution for all those Memphis companies in need of manufacturing factoring services. We can evaluate your company's receivables at no cost or obligation and determine if we are the best fit for your company. We provide financial solutions for the advanced manufacturing and automotive industries in Memphis every day.
Our supply chain finance solutions offer manufacturers the highest advance rate against the face value of the outstanding receivables. Besides invoice factoring for Memphis businesses, we offer other financing services, including purchase order financing and trade payable financing for qualified manufacturing plants.
In the manufacturing industry, it is common for businesses to offer longer-term payment plans to their clients to remain competitive and motivate clients to place larger orders.
Manufacturers in Memphis have many consistent and extensive costs, including buying materials, equipment, paying suppliers, rent, and payroll. 1st Commercial Credit offers manufacturing invoice factoring to help manufacturers in Memphis have access to immediate cash flow when needed the most. This financing method allows businesses to continue to provide competitive, extended terms to clients while maintaining a healthy cash-flow balance.
Manufacturing receivable financing is a financing solution that resolves cash flow issues for businesses who operate in industries where it is essential to offer extended payment terms. These terms can generally range anywhere from 30 to 90 days. Accounts receivable factoring involves selling outstanding invoices to a third-party company like 1st Commercial Credit.
If manufacturing businesses can prove that their clients can pay for the invoices and have fulfilled orders, factoring companies are highly likely to approve them and immediately set up a financing account. With invoice factoring, cash flow issues will no longer have to wait months to be resolved. Manufacturing companies in Memphis choose 1st Commercial Credit because we offer various supply chain finance solutions, an efficient process, and expertise.
Continue growing with our receivable factoring for the agribusiness in Memphis. Agriculture and farming are two very challenging businesses due to the hard labor, seasonality, and the expense of equipment involved with this industry.
In the produce industry, the growth of a profitable crop can either explode or be halted by unexpected circumstances. On the bright side, factoring can be the solution to this financial issue for many businesses. The risk for unforeseen situations is mainly why traditional banks are reluctant to lend to the agricultural and farming sector. Also, the combination of thin profit margins, significant expenses, and complicated supply chains makes it challenging to obtain financing.
Agriculture factoring is a long-established form of financing that has been used for many years. Farmers, distributors, food processors, food manufacturing companies, food packaging companies, shippers, and suppliers can all take advantage of agriculture financing. Agriculture factoring provides capital for your business in just a few business days. By purchasing your current unpaid invoices, agriculture factoring companies can pay you for them immediately.
Businesses won't have to wait weeks or months to collect payment from their customers. Factoring companies charge a small fee for expediting this payment process which can range differently for each transaction and depends hugely on the type of business (The more current the invoice, the lower the fee).
More importantly, agriculture factoring does not rely on your credit score for approval but the creditworthiness of your invoices. The produce factoring company only assesses the credit of your customer. Setting up an accounts receivable line of credit with 1st Commercial Credit for the produce industry is a simple process. Unlike other traditional financial lenders, we know the unique characteristics of the agricultural sector. The staff at 1st Commercial Credit is familiar with the process, challenges, and opportunities that await your business.
Our factoring program will provide working capital for your business within just a few working days. When your account is approved, we can finance the invoices and advance the funds fast. Your company will receive fast cash and avoid waiting weeks or months to receive payment from clients.
Equipment financing is essentially a type of loan that allows businesses to buy the equipment and machinery needed to run their business successfully. Equipment loans allow business owners to invest in the tools and machinery necessary to increase efficiency and remain competitive. Companies providing equipment financing services may be willing to finance up to 100% of the equipment while offering competitive interest rates and accessible lending requirements. This structure can make it possible for startups and other small businesses to invest in growth and continued operations without a considerable cash expenditure. There are various types of equipment financing, but the most common ones have fixed interest rates and set monthly payments. 1st Commercial Credit works with many different industries. For example, we provide construction equipment financing for business owners in the construction sector needing large and expensive machinery.
After applying for equipment financing with us, funding can be received in as little as two days. Monthly payments are spread out over a loan term extending anywhere from two to ten years. The purchased equipment secures equipment financing, so if the borrower defaults on the loan, the lender can repossess the equipment used as collateral. Equipment leasing differs from financing in that the business owner pays to use the equipment for a predetermined time rather than owning the underlying equipment, as is the case with financing.
Leasing also lowers the upfront cost of getting equipment and reduces the impact of depreciation. Because of this, equipment leasing may be a better fit for businesses not planning to use the equipment for very long. On the other hand, businesses planning to keep the equipment for longer may benefit more from equipment financing. We also work with the agriculture sector, providing a fast and straightforward application process for farm equipment financing.
If you are ready to work with a lender that provides the best financing solutions, contact 1st Commercial Credit to learn more about our financing services. Business owners can also use our equipment lease calculator to insert their credit score range and the amount they’re looking to finance to obtain a quote.
Memphis benefits from being a location of choice for businesses and has a diverse set of key industries. Greater Memphis is competitively positioned to grow future-focused density in agribusiness and technology, advanced manufacturing, food and beverage processing, medical devices and innovation, and transportation and logistics.
Memphis is known in the world as the "Home of the blues and the birthplace of rock 'n' roll." This city is also famous for its music. Some of the main attractions include Beale Street Historic District, Graceland, The Memphis Rock N' Soul Museum, Stax Museum of American Soul Music, Sun Studio, and The National Civil Rights Museum.
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