Raul Esqueda, Chairman of 1st Commercial Credit, says âI am very pleased to see our new transactional finance program succeed and meet the needs of our existing factoring clients. of our customers are in growth mode, and sometimes invoice factoring is not enough to keep the supply chain smooth. We have created a hybrid program between inventory financing and order financing, where traditional order financing does not work. Some of our customers order products before receiving a purchase order based on stock turnover. In this scenario, traditional purchase order financing is not eligible because there is no purchase order to pledge.
Accounts Payable and Inventory Financing is another program typically available to very large, financially sound, credit insurable businesses. 1st Trade credit offers existing factoring customers the ability to prepay suppliers or finance debt and deduct the factoring proceeds once sold. Customers must have at least $ 100,000 one month of turnover systematically for 6 months to be considered for this type of financing (no startups).
Payroll funding or work-in-progress funding is another financial service for staffing companies and other service-related businesses. Most of the time, they are not able to invoice the factor on a weekly basis. Some contracts require customers to invoice monthly, creating a huge cash flow gap for payroll or production funding between factoring monthly invoices.
Purchase Order Financing is not available as a stand-alone financial service, customers are required to consider all accounts before considering order financing or supplier financing. Learn more about requesting purchase order financing.
SOURCE 1st Commercial Credit, LLC