AUSTIN, Texas, June 18, 2021 /PRNewswire/ -- 1st Commercial Credit, LLC is an invoice factoring and trade payable finance company based out of Austin, TX. Clients were referred to 1st Commercial Credit by food suppliers, financial consultants and bankers to provide accounts receivable factoring services in order to fulfill orders solicited by over 240 organizations that received Basic Ordering Agreements (BOA). Primary buyers of the food supply are sometimes referred to as prime contractors that have been awarded the agreements by the USDA.
The food program was designed to help out American Farmers and families that had been affected by the Covid-19 pandemic. The food products contained nutritious healthy meals in boxes that were provided to millions of families across the country consisting of fresh produce, dairy and meat products.
The Funding Challenge
1st Commercial Credit makes this type of transaction funding easy for clients to pay food suppliers within terms, while offering the primary buyers 14 to 30 day credit terms. 1st Commercial Credit provides supply chain financing by accommodating both trade payable finance for clients to pay food suppliers on time and also receivable factoring for product delivered. Some clients only need the fast turnaround on factoring the invoices to continue paying suppliers, while others require both trade payable and receivable financial services.
Rising Meat and Poultry prices is causing a supply chain cash flow shortage.
While many food commodities are slowly coming up in price, meats are substantially moving higher than normal due to supply chain disruptions throughout the year. Covid-19 caused many countries to close down businesses world-wide causing a shortage of logistics to transport products, meat plants closing down, an unusual ice storm that hit Texas, and just recently a hacker shut down the largest meat importer and packaging plant for over a week.
1st Commercial Credit continues to get inquiries from poultry and beef importers that need more cash flow due to the high demand and higher than usual price increases. Contact us if you would like to learn more about our factoring services.