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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 to 5 working days.
learn moreBusiness owners are trying to find a way to get short-term financing for their businesses that is accessible, reliable, and doesn't create debt. Many businesses find bank loans and long-term debt financing to be ineffective compared to other alternative financing methods. A factoring company offers the quickest way to get cash upfront without facing more cash flow shortages. For any small business owner, short-term financing through factoring firms is a crucial financial tool for gaining immediate cash when needed the most.
Many lending companies out there will help businesses get short-term loans that are specific to certain industries. For example, some factoring companies focus only on temp staffing or the trucking industry. 1st Commercial Credit, on the other hand, has extensive experience financing many different sectors and offers a broader catalog of cash flow solutions and business financing. In most cases, the collateral used will be the unpaid invoices. This is very different and more convenient than how a bank operates, where physical property is the only form of collateral. Factoring companies will focus on funding invoices on credit terms since almost every company has employees, fixed overhead, and payroll expenses and is forced to wait for checks to come in.
AR financing or invoice factoring is ideal for improving business cash flow if it takes your company 30-90 days or more to collect on invoices. However, it is not always the right choice for every business in West Virginia. It's usually the right choice if your company:
Once you have decided that AR financing is right for your West Virginia company, the step that follows is to evaluate a list of factoring companies. The first thing to look at is whether the factoring company specializes in a particular type of business. If you own a healthcare business, you don't want to work with a lender that knows nothing about that specific industry. Even if the factoring company advertises as a general lender, inquire about the types of businesses it has the most experienced lending to. Comparing different factoring companies will also help business owners select the one with the best accounts receivable financing rates that can fulfill all financial needs. Ideally, the lending company you choose should have a few years of experience financing receivables for businesses in West Virginia. You can always request the company's track record with references from other customers in similar businesses. The references you contact should have an equal sales volume as your company.
Applying for a bank business loan is a challenging task for most business owners. Even if your company is considered creditworthy, the process is often complex and time-consuming. When businesses are waiting on money from outstanding invoices, the last thing to do is add even more time to wait with a bank loan to come through and cover the funds. The average bank loan can take several weeks to a month or longer to approve a traditional loan. For many companies in West Virginia, obtaining an accounts receivable loan through a factoring company makes more sense.
The best thing about this alternative form of financing is that we don't require any business collateral besides the receivables (invoices) for applicants to qualify. We also do not look at or consider a business owner's credit rating. Since your customers pay us, we are more concerned with their creditworthiness. In addition to the invoices you want to factor for initial setup, we require proof of business incorporation, a customer list, an aging report from your accounts receivable department, and your purchase orders or rate confirmation agreements. After we approve your accounts receivable financing request, you are free to use the money however you think appropriate. Newer businesses often will utilize the funds from invoice factoring to increase cash flow to grow the business. Established companies with seasonal sales will use the funds to get through the slow times without going into debt. 1st Commercial Credit also offers other forms of financing for West Virginia businesses, including po financing and trade payable financing.
The manufacturing sector in West Virginia accounts for 10.25% of the total output in the state, with a total production of $7.94 billion in 2018. This industry also employs 6.50% of the workforce. In addition, there was an average of 48,000 manufacturing employees with an average annual compensation of $73,169.37 in the state in 2019. Consumers all around the U.S. and even the world are in constant contact with products containing elements made in the mountain state.
Everything from the base polymers in cosmetics and window seals to finished goods such as tableware, spark plugs, charcoal, and kitchen cabinets are made in West Virginia. The state has a diverse manufacturing sector, including biotech/pharmaceuticals, chemicals, primary metals, automotive components, fabricated products, wood products, and more. Additionally, West Virginia's workforce ranks #1 in the U.S. for the lowest turnover rate in manufacturing-specific jobs.
All of this success in the manufacturing sector West Virginia is experiencing is excellent for the overall state's economy. Many successful and well-established businesses in this sector manage their cash flow smartly and work with banks to obtain loans when needed. On the other hand, many startups and small and medium-sized companies struggle to get financing because of the bank's strict requirements and added debt. The good news is that bank financing is not the only option to obtain access to funds.1st Commercial Credit specializes in financing manufacturing firms utilizing their accounts receivables. These accounts are in the current assets section of a business's balance sheet and are the cash inflows that a business expects to receive in the near or far future.
Typically there are no issues for companies if their accounts receivables remain in check and roll over promptly. Unfortunately, these agreements do not always work the way a company plans, and delays in accounts receivables can cause cash shortages and liquidity problems. On a positive note, a company can outsource its accounts receivables to a third-party lending company called a factoring company to receive access to immediate cash to run daily business operations, take care of bills, and cover payroll.
Accounts receivables factoring is defined as the sale of a company's accounts receivables or outstanding invoices to a factoring company or third lending party for immediate cash. This financing method is often referred to as AR financing, an arrangement where the debt collection is passed to an accounts receivables factoring company. These financing companies specialize in trading debts and manage the debt owed to their client (a business owner) on the client's behalf and assuming the risk of non-payment.
When a manufacturing company is growing, there are many considerations and decisions to take, and financing business growth is one of the main ones. Growth and expansion usually require infrastructure, marketing, expanded inventory, hiring additional personnel, and many other costs. Your West Virginia manufacturing company should have the ability to grow without being forced to turn down contracts or be forced to halt growth because of cash flow shortages. To succeed and grow, businesses will have to offer better credit terms to clients, which means payments will take some time to come in. These struggles are part of running a successful business, and your competitors are experiencing it too. The big differentiator between you and them is whether the right financial partner is selected to go through this with you.
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 receivables 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.
Manufacturing companies can start turning their accounts receivable assets into immediate cash for business growth. 1st Commercial Credit offers solutions for West Virginia manufacturers looking for alternative forms of financing for their business, so that their production line is not interrupted. Companies can use their receivables assets and exchange them for fast cash flow.
There is a small factoring fee associated with this financial solution. These rates are usually calculated based on the following:
When a lending company factors an invoice, businesses will generally receive a large percentage of that invoice upfront. The remaining amount is given when customers fully pay the invoice. Factoring fees can vary and range anywhere between 1% and 5%. Our financial solutions provide the total flexibility needed to heighten your company's ability to grow without having to pledge collateral. Businesses in West Virginia need additional cash flow to continue running successfully.
In addition, key suppliers need to get paid, customers are demanding longer credit terms, and we can help make all that happen.
If you don't take care of a consistent cash flow problem within your company, you will be forced to miss out on many opportunities and risk not making financial obligations. Eventually, your business will end up running out of money. As a business owner, you will need to reevaluate what would cost more at the end of the day. 1st Commercial Credit's financing options can help your business grow while maintaining a healthy cash flow and taking care of crucial responsibilities such as payroll funding. In addition to fast cash, you'll see that factoring companies offer more benefits at no extra cost when you start factoring invoices. With our factoring services, your business will have access to many tools to help it prosper and succeed, including admin support, a path to better credit, and financial flexibility.
1st Commercial Credit has extensive experience dealing with account debtors like AT&T, Cox Communications, Comcast, Time Warner, as many others. Factors need to be familiar and know the methods of payment used in this industry and by these companies to make the funding process smooth and efficient. 1st Commercial Credit has provided account receivable financing solutions and telecom invoice factoring to cable and telecommunication businesses for over 18 years. We strive to make the entire application and funding process simple, and the process is quick and straightforward. After a company applies, the whole process can be done in a few working days, including receiving the funds.
We can help you manage the frequent swings in cash flow by getting you your money now, not waiting 30, 60, or 90 days. Your suppliers can get paid quickly so that business owners can negotiate the best pricing. In many instances, the ability to qualify for discounts and get better pricing has made up for the cost of factoring. Telecom factoring provides businesses with a cash flow solution that turns a company's outstanding invoices into immediate cash. The process involves selling your receivables to a factoring company in West Virginia in exchange for immediate payment. The cash-flow gap caused by slow-paying customers is alleviated by using this form of financial solution.
Telecom factoring is a reliable and accessible debt-free form of financing providing fast cash to fulfill pressing and ongoing expenses, cover bills, meet payroll, and invest in new business opportunities. If your business has to deal with slow-paying customers constantly and extended credit terms, factoring is the answer. Many business owners still think of bank financing as the only possibility out there, but unfortunately, only a few businesses can qualify for this type of financing. On the other hand, 1st Commercial Credit's financial solutions will pair you with the best funding program for your business needs.
A factoring company specializes in buying a business's accounts receivable and advances the cash that can sometimes go up to 97% in exchange. We work hard to ensure your telecom business receives the lowest rates and most flexible terms. Our factoring solutions enable cable and telecommunications companies to make payroll, hire new employees, purchase new supplies, offer better credit terms to clients, and expand the business. Even if banks have rejected your business in the past due to poor credit or past bankruptcies, it can still qualify for factoring! The factoring approval decision is based on your customers' credit status and history, not your personal or business credit history.
Many cable and telecommunications businesses rely on accounts receivable factoring to handle and solve cash flow challenges. Telecom factoring offers a flexible and reliable financial solution to many businesses in this sector, including:
Telecom and wireless are some of the most competitive industries across the United States. All areas of the telecommunications market are undergoing technology improvements, and new players are creating further disruption. As a result of the changes and evolving environment, telecom and cable contractors face challenges and opportunities. Many of these service providers have a cash deficiency due to expenses and competition, yet they're still pushed to new investment in their network as they seek to improve it. Additionally, longer payment terms put business stress on telecom and wireless contractors, who often face immediate expenses when taking on projects. Thankfully, accounts receivable financing improves cash flow for all types of telecom and cable contractors by providing direct payment on invoices.
Telecom and cable contractors benefit directly from the cash flow given by factoring. Other value-added services come from factoring services. Credit and background checks for current and potential customers and online reporting are just some of the extra benefits that give clients the peace of mind to focus on other aspects of their business.
Typical cash flow issues our cable and telecom customers have:
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