19SEPTEMBER 2025CFO TECH OUTLOOKan innovative system and a team of experts, the company caters to businesses across various industries, including transportation, medical providers, exporters, importers, service providers, distributors and manufacturers. A privately owned company, it demonstrates significant autonomy and flexibility in offering customized solutions. Going beyond conventional underwriting norms, flexible funding requirements that most businesses can easily qualify for are offered. A receivable based line of credit is initiated within days. Whether it is a small corporation with $10,000 a month in sales or a company that needs $10 million in working capital, 1st Commercial Credit caters to them all. "Our factoring solutions are categorized into three divisions, each of which is designed to serve different industries based on the client's needs," says Raul Esqueda, president. EMPOWERING BUSINESSES WITH SPECIALIZED FINANCING STRATEGIES In contrast to the specialization trend, this branched approach sets 1st Commercial apart. The three divisions include accounts receivable financing, purchase order financing, and trade payable financing, each addressing needs within its domain. For example, the accounts receivable financing programs--invoice factoring and asset-based lending--provide different advantages based on industry needs.With invoice factoring, 1st Commercial provides funding for up to 98 percent of the outstanding invoice value, with variations depending on the industry and the client's profile. Factoring is a straightforward agreement between buyer and seller that converts receivables to a cash on hand asset, distinct from a loan, in which 1st Commercial Credit regularly buys the invoices, functioning similarly to a credit line. Payments from account debtors are made to a specific lockbox, streamlining the process for incorporating account debtors into the payment assignment transition. With "Selective" invoice factoring, clients have the flexibility to choose which invoices to finance, or select specific account debtors whose invoices they wish to use for funding. Additionally, for more established companies with a solid history of collections, profitability, and consistent sales and balances exceeding 3 million, 1st Commercial provides asset-based lending. This type of lending is secured by assets such as equipment, inventory and accounts receivable.An unconventional mix of factoring solutions has helped many businesses, including a client who needed aid in managing in-transit inventory. The overseas supplier, specializing in unique valves for the oil and gas industry as well as for medical and pharmaceutical manufacturing sectors, was already utilizing accounts receivable factoring but needed additional funds to pay for in-transit inventory. The client had established more than 40 U.S.-based accounts operating on net 45 to 60 day payment terms, and products taking 4 to 6 weeks to arrive via ocean freight from China, the client encountered difficulties due to prolonged lead times and fluctuating SKU dynamics This situation highlighted the critical need for a financial strategy capable of accommodating the intricate demands of their supply chain. In response, 1st Commercial Credit developed a tailored supply chain finance solution to address the unique transaction flow needs based on the in-transit inventory connected to the receivables being financed. This solution gave the client a transparent overview of shipments and sales, bridging the gap between procurement and sales cycles and streamlining its business.The types of specialized solutions are what 1st Commercial Credit is widely recognized for. It extends this tailored approach to numerous temporary staffing agencies, where employees are typically paid weekly, but the agency's clients often have payment terms of net 30 to 60 days. When working with 1st Commercial, they benefit from a streamlined process, with payroll invoices promptly funded--often the same or next day.Alternatively, when serving government contractors, who, unlike staffing agencies, generate invoices every month, a distinctive line of credit for payroll funding is implemented based on the completed work. The strategy ensures timely payroll support, and at the end of the month, the generated invoice settles the funding, with the remaining balance returned to the client.The trucking industry is another beneficiary. Being prepared and anticipating trends is key to staying ahead in this industry. For instance, load boards provided by freight brokers have emerged as crucial tools for trucking companies to bid on. However, new freight brokers without established credit pose a risk. Acknowledging this, 1st Commercial extends its services beyond invoice factoring to include an immediate credit check feature. Utilizing the MC number of the freight broker, it provides swift responses, indicating the validity for a specific load amount. This proactive approach empowers clients to make informed decisions, ensuring they engage with reputable and creditworthy freight brokers, preventing potential losses.WE'VE MADE A LOT OF THE MANUAL PROCESS OF FACTORING VERY FUN AND EASY TO DO, WHICH IS ONE OF THE REASONS THAT WE HAVE A VERY LONG-TERM CLIENT ATTRITION RATE
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