1st Commercial Credit Affiliates Secure $170 Million in Credit Protection with Allianz Trade

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Aug 11, 2023, 08:06 ET

AUSTIN, Texas, Aug. 11, 2023 /PRNewswire/ -- 1st Commercial Credit, LLC, a distinguished financial services provider, is pleased to report the successful procurement of $170 million in credit protection from Allianz Trade for its affiliated factoring companies, namely Capital Credit Incorporated, Commerce Commercial Credit, Inc, and Contract Credit, Inc.

Raul Esqueda, President of 1st Commercial Credit, LLC, and a Senior Managing Partner for the three affiliated factoring companies, emphasizes, "The acquisition of this credit protection strengthens our factoring companies' receivable-based financing strategies. It allows us to offer larger credit limits while ensuring credit protection, signifying the dawn of a new era of expansion and security for our operations and banking credit lines."

In the increasingly unpredictable economic environment of today, the financial behavior of account debtors (buyers) is often volatile. Some debtors, despite having a long history of punctual invoice payments, can unexpectedly file for bankruptcy.

For a factoring transaction to be successful, it is essential to have a financially sound buyer. Ultimately, we depend on our clients to provide accurate invoices for funding and a buyer in a financially stable position to make the payment. The credit risk for a factoring company elevates when a client expands rapidly with a single, major buyer. Commercial business lenders and factoring companies often resort to credit insurance to mitigate risks in these circumstances.

Esqueda expressed high regard for Allianz Trade's financial strength and was notably impressed with the simplicity of the portal for managing credit requests. Additionally, the EZ-Cover's rapid approval process for smaller amounts further enhanced his positive experience.

About 1st Commercial Credit, LLC

1st Commercial Credit, LLC is a renowned provider of financial services, specializing in aiding businesses across multiple sectors with factoring services and purchase order financing. By providing immediate cash flow solutions, it allows businesses to operate smoothly without waiting for their clients to settle invoices on credit terms.

SOURCE 1st Commercial Credit, LLC