1st Commercial Credit

A receivables finance firm that advances cash against a business's unpaid invoices and offers related trade and supply chain finance to companies across many industries.

Invoice factoring for credit sales

Factoring turns sales made on credit terms into cash that can be used straight away. The firm says the receivable credit line depends on the financial strength of the customer who owes the money, rather than on the seller's own accounts, so a business with weak financials can still be funded if its buyers are creditworthy. Decisions are based mainly on the invoicing process and the credit strength of the buyer, not on financial statements, tax returns or equity ratios, and the site says there is little underwriting involved.

Setting up an account and getting funds out

After approval, the account is set up over three to five business days. Once it is approved and running, the firm says it can fund invoices and advance the money within 24 hours, and that a request for more working capital can be decided within hours. The company says there are no up-front or set-up fees, and that a receivable is a hidden asset which a business can pledge as collateral and draw against at any time, without taking on a loan.

Purchase order financing for resellers

Purchase order financing is offered as a trade finance solution for any wholesaler, reseller, importer or company that buys goods and resells them. The firm presents it as a way to fund a purchase before the goods are sold on.

Supply chain finance for exporters and importers

For exporters and importers with buyers in the United States, the firm offers supply chain finance. The services listed for trade clients include finance for goods in transit, credit insurance, bespoke cargo cover and non-recourse factoring. The site says this covers both the USA and Canada as markets for its clients.

Trade payables and buyer-side credit

Some clients need to extend payment terms to their suppliers. For them the firm offers credit facilities and an online platform for handling payables, through which invoices can be reviewed, approved and paid. Buyers can take optional early payment discounts through the platform. Short-term cash advances against future orders are available once a factoring line is running, and the site says they suit seasonal businesses and firms with uneven capital needs.

Eligibility and the invoice rules

Any business that sells on open credit to customers of sound credit can qualify, including start-ups without an established financial base and firms with seasonal or uneven sales. The invoice has to be a final sale with no contingencies or disputes, and the goods or services must be fully delivered before the invoice is eligible. The firm says each industry is assessed on its own method of invoicing, so not every factoring company will accept every industry.

Industries the firm funds

The site lists staffing, security guard companies, manufacturers, distributors and wholesalers, oilfield and gas businesses, healthcare, trucking and freight, and produce distributors working under PACA rules. Examples on the site include a travel nurse staffing agency, a cyber security company and an IT staffing business.

Batching invoices with an affiliate system

Preparing invoices with their backup paperwork is a time-consuming task for many factoring clients. The firm says an affiliate company has built a system, MyBizPad, that batches invoices in a factoring module, so the batch is ready to send to the firm at any time.

1st Commercial Credit is a factoring company that finances business receivables. Businesses sell their invoices to turn credit sales into working cash, in a structure the firm describes as a sale agreement rather than a loan. It says it has operated for over 20 years and funded more than 3,800 clients.

What 1st Commercial Credit offers

• Invoice factoring: advances against unpaid invoices for firms in almost any industry.
• Purchase order financing: for wholesalers, resellers, importers and others who buy and resell goods.
• Supply chain finance: in-transit inventory finance, credit insurance, cargo insurance and non-recourse factoring for exporters and importers with US buyers.
• Trade payables platform: suppliers and buyers approve and pay invoices online, with optional early payment discounts.
• Short-term cash advances: against future orders once an account is running.

Who it works with

Small and large companies, with staffing, security guard, manufacturing, distribution and wholesale businesses named as popular industries. IT staffing and cyber security firms also appear.

Key facts

• Experience: over 20 years
• Clients funded: more than 3,800
• Account set-up: three to five working days