Commercial Capital LLC has financed transactions for more than 900 clients. We operate across a wide range of industries in the United States, Canada, and Australia. Readers and clients can submit suggestions or corrections through LinkedIn.
Our articles
All articles on this site are written and reviewed by finance professionals with more than 20 years of industry experience. They identify the principal author and are grounded in Commercial Capital LLC’s actual field experience.
We strive to provide clear and realistic information about our financing programs instead of highlighting only best-case scenarios. Consequently, some of our published terms may appear less attractive than those advertised by other finance companies. That does not mean that our terms are less attractive or that our qualification requirements are more challenging. We are simply upfront about the typical requirements and processes. Consequently, clients know what to expect and can plan accordingly.
Here is one example. Many factoring companies state that they can onboard new clients and fund their invoices within one day (e.g., 24 hours). This is technically possible. However, it is very unlikely.
Onboarding requires several steps. Furthermore, some steps depend on third parties responding quickly. Consider the steps a typical factoring company usually follows to onboard a new client:
- Review the application and provide a proposal
- Provide a contract if the proposal is accepted
- Allow the client to review and sign the contract
- File a UCC financing statement
- Send NOAs to the customers whose invoices will be factored
- Verify the invoices
In our experience, these steps typically take 3–5 days to complete. Note that rushing through all of these steps within 24 hours isn’t always a good idea. This timeframe leaves the client very little time to review, understand, and sign the financing agreement.
Our product expertise
We have over two decades of experience financing transactions using the following solutions:
- Invoice factoring
- Freight factoring (transportation)
- Construction factoring
- Medical factoring
- Asset-based lending
- Debt consolidation/refinancing
Our industry expertise
Commercial Capital LLC has experience across a wide range of industries. However, we have also developed significant expertise in the following sectors.
a) Transportation
Commercial Capital LLC has provided freight factoring to hundreds of transportation companies in the USA and Canada. We typically work with owner-operators and small carrier fleets by providing them with financing and ancillary services (e.g., fuel cards, discounts, etc.).
b) Small business
We started in the industry as one of the few factoring companies that would work with very small businesses. It is a niche market that we know very well. Our company has financed hundreds of small businesses in the USA and Canada across a wide range of B2B industries. Commercial Capital LLC recognized early on that these companies require more guidance and support than larger businesses, and we built our process to provide it.
c) Electric utility restoration
Commercial Capital LLC is one of the few factoring companies with the industry expertise to finance invoices from electric utility restoration (storm response) and utility vegetation management companies. These companies use factoring seasonally and only when a major storm occurs. However, they may need a substantial amount of funding that is highly concentrated.
Few factoring companies can handle that type of risk profile. Furthermore, financing companies in this industry requires specialized knowledge because few storm response companies work directly for utilities. This complicates the payment flow beyond what conventional finance companies can handle.
d) Construction
Construction factoring is inherently challenging and has a different risk profile than conventional factoring. This is why few factoring companies can handle this industry. Commercial Capital LLC is one of the few factoring companies that has been providing factoring to construction subcontractors for over a decade.
Some of our construction factoring clients are surprised by the additional requirements. Every construction factoring company, including us, follows similar requirements and processes. They are industry standard. However, we disclose this information upfront and in detail so clients can make an informed decision before moving forward.
Construction factoring companies also have some inherent limitations. They typically cannot finance retainage invoices, nor can they finance General Contractors. This applies to the majority of construction factoring companies. Commercial Capital LLC lists the limitations upfront so prospective clients can make an educated choice.
Retainage invoices cannot be factored because they carry a high risk of dispute. Furthermore, these invoices are typically open for more than 90 days, making them ineligible for factoring.
The limitation regarding General Contractors is due to the relationship between the GC, the subcontractor, and their end customer. Subcontractors can file mechanic’s liens against the end customer, which can be released only when the subcontractor gets paid by the GC. Consequently, invoices from General Contractors have additional legal and payment risks that make them unsuitable for factoring.
e) Drilling
The drilling industry is a subspecialty of construction. However, many drilling companies invoice by the foot (or metre, in Canada) rather than using conventional progress billings. We can often structure their financing using a conventional factoring line rather than a construction factoring line. Consequently, Commercial Capital LLC can typically offer these companies simpler qualification requirements and better terms.
f) Small mid-sized companies
In the past decade, we have developed expertise in structuring factoring, ledgered lines of credit, and asset-based transactions at the smaller end of the middle-market segment. These companies fall into a grey area. They are too big to be considered small businesses but too small to be considered lower-middle-market companies. Consequently, there are few finance companies that can provide them with the comprehensive suite of services and expertise they require.
As an example, a smaller midsized company may need receivables financing but have a legacy term loan with terms that encumber its accounts receivable. We can often refinance the legacy loan with a new term solution that includes a specialized intercreditor agreement, enabling us to add an accounts receivable financing layer.
Note
All content on this site is provided for educational purposes only. It should not be considered financial, tax, accounting, or legal advice. Always consult a qualified professional before making any major financial decision.