1st Commercial Credit Expands Factoring Facility to $10 Million for Security Guard Firm

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Dec 12, 2023, 07:45 ET

AUSTIN, Texas, Dec. 12, 2023 /PRNewswire/ -- 1st Commercial Credit, a leading provider of factoring solutions, is delighted to announce the successful expansion of an invoice factoring facility from $5 million to $10 million for a security guard company specializing in safeguarding private properties. This remarkable growth, achieved in just the past 12 months, underscores the flexibility and scalability of the factoring arrangement.

Security guard companies must issue invoices with credit terms, all while facing the weekly challenge of meeting payroll. This imbalance between payables and receivables places the company at a cash flow disadvantage.

Factoring, a strategic financial tool, empowers businesses to rapidly transform accounts receivable into immediate cash, addressing working capital needs and facilitating operational expansion without the burden of additional debt.

The decision to adopt factoring was influenced by a recommendation from the security guard company's investment banking firm. The company opted for a buyer/seller structured agreement to efficiently manage their receivable assets.

Raul Esqueda, President of 1st Commercial Credit, emphasizes the increasing favorability of the factoring industry among companies seeking to convert receivable assets into cash while maintaining a debt-free balance sheet. This financing approach continues to attract interest from private equity and investment banking firms, highlighting its strategic advantages for sustained growth.

Factoring remains a valuable financial solution for businesses, offering the dual benefits of rapid capital access and financial stability, enabling companies to thrive and seize opportunities in an ever-evolving business landscape.

About 1st Commercial Credit:

1st Commercial Credit is a leading provider of factoring and supply chain finance solutions. For more information, please visit www.1stcommercialcredit.com

SOURCE 1st Commercial Credit, LLC