Factoring and Supplier Financing

Waiting 30 to 90 days to get paid by clients is a common cause of cash flow problems for business owners. Having unreliable cash flow affects your ability to pay employees and suppliers and your capacity to make new investments.

Our solutions provide you with dependable cash flow. We offer factoring, sales ledger financing, and purchase order financing. These solutions help small and midsize businesses that need working capital to operate smoothly and grow.

We have:

1. Nearly two decades of experience
2. Simple qualification requirements
3. Competitive rates
4. The ability to get you funded quickly
5. Expertise in many industries

Commercial Capital LLC offers services in the US, Canada, and Australia.

Product selection:

Would you like an instant quote?

Get an instant online quote to see how affordable our services are. We can offer factoring rates as low as 1.15% based on your volume and industry. Rates for other products vary. You can also call us toll-free at (877) 300 3258 to speak to a representative.

Solution: Factoring financing

Invoice factoring can help your company if you have tight cash flow because your customers are paying you in 30 to 60 days. It enables you to finance your accounts receivable and get funds immediately. For more details, read “What is factoring?”

1. Advantages

This solution has many advantages, including:

• Availability to small and midsize businesses
• Easy to get
• Provides predictable cash flow
• Reduces effects of slow payers
• Helps you manage customer credit
• Grows as you need it
• Can be used short term
• Can be used selectively

2. Qualification criteria

Qualifying for factoring is relatively easy. Your company must have:

• Good commercial or government clients
• Reasonable gross margins
• A/R that is free of liens

3. How does factoring work?

Factoring works by financing your invoices from slow-paying clients. The factor purchases your invoices and provides you with an immediate advance. The transaction settles when your customer pays. Most transactions are financed in two installments, as follows.

• You invoice your client and send a copy of the invoice to the factoring company.
• The factor advances 80% (this amount varies) as a first installment.
• Once your client pays, you get a rebate of the remaining 20%, less the factoring fee.

For more information, read “How does factoring work?”

4. Factoring costs

The cost of factoring varies based on your industry and size. For an instant quote, submit this form or call (877) 300 3258. For more information about costs, read “Typical factoring costs”.

5. Available in most industries

We can provide financing in most industries, including:

1. Business services
2. Transportation
3. Staffing
4. Construction
5. Manufacturing
6. Technology
7. Medical and healthcare
8. Oil and gas

If you are looking for a factor, consider reading “How to Find the Best Factoring Company for Your Business,” which offers some important advice.

Solution: Sales ledger financing

Sales ledger financing helps companies that have cash flow problems due to long customer payment terms. The financing facility behaves like a revolving line of credit that is tied to your accounts receivables.

We offer this solution to companies that are well organized and have outgrown the requirements of accounts receivable factoring lines.

1. Advantages

This solution has many advantages, including:

• Availability to midsize businesses
• Easier to get than a line of credit
• Draw funds as needed / when needed
• Competitively priced (e.g., Prime + x%)
• Minimizes redundant controls that other solutions impose

For more information, read “Advantages of sales ledger financing.”

2. Qualification criteria

To be considered for sales ledger financing, your company must have:

• Monthly minimum A/R of $500,000
• High-quality clients
• Good invoicing and billing practices
• Dependable internal controls
• Reliable and experienced management
• Achieved profitability (or be near)
• No serious financial/tax problems
• Recent financial statements

3. How does sales ledger financing work?

The line behaves like a line of credit that is tied to your accounts receivable. The platform has a borrowing base that you can draw against as needed.

The borrowing base is calculated as a percentage of your eligible receivables, usually between 80% and 95%. An eligible receivable is one that is considered creditworthy. The facility is dynamic and changes as old invoices are paid off, draws are made, and new invoices are generated.

4. Sales ledger financing costs

The cost of sales ledger financing varies based on your industry and size. For an instant quote, submit this form or call (877) 300 3258.

Solution: Purchase Order Financing

We offer purchase order (PO) funding to product distributors that have a confirmed purchase order and need funds to pay their supplier for that order. This solution enables you to fulfill large orders and grow your business.

1. Advantages

This solution has many advantages, including:

1. Pre-delivery financing
2. Easier to get than bank financing
3. Can grow with your orders
4. Available to small companies
5. Size of financing is not restricted by your company size

2. Qualification criteria

To qualify for purchase order financing, your company must:

1. NOT be a direct manufacturer
2. Be a product reseller
3. Have minimum gross margins of 20%
4. Have minimum orders of $100,000

For more information, read “Am I a good candidate for PO financing?”

3. How does PO financing work?

PO financing works by handling your supplier cost directly. The purchase order funding company pays the supplier on your behalf with a letter of credit. This payment enables the supplier to ship the goods and allows you to fulfill the purchase order. The transaction settles when your client pays the invoice.

For detailed information, read “How does PO funding work?”

4. PO funding costs

The cost of PO financing varies based on your industry and size. For an immediate quote, submit this form or call (877) 300 3258.