1st Commercial Credit Offers Foreign Sellers Invoice Factoring for Inbound Sales

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Sep 12, 2024, 18:44 ET

AUSTIN, Texas, Sept. 12, 2024 /PRNewswire/ -- 1st Commercial Credit LLC is excited to announce the expansion of its financial services with the launch of international invoice factoring for inbound sales. This new offering provides financial support to foreign businesses factoring invoices from strong U.S.-based buyers importing goods from Latin America, Asia and some European countries.

Foreign companies engaged in international trade can improve their cash flow by securing immediate financing on invoices backed by credit-insurable U.S. buyers. Unlike previous requirements, foreign companies no longer need to establish a U.S.-based entity to secure receivables, making the process significantly more accessible. (PRNewsfoto/1st Commercial Credit, LLC)

With this development, foreign companies engaged in international trade can improve their cash flow by securing immediate financing on invoices backed by credit-insurable U.S. buyers. Unlike previous requirements, foreign companies no longer need to establish a U.S.-based entity to secure receivables, making the process significantly more accessible.

Raul Esqueda, President of 1st Commercial Credit, LLC, explains, "Closing factoring deals with foreign companies selling into the U.S. has always been challenging. In the past, we had to secure the seller's receivables under a U.S.-based company, which created significant obstacles for foreign businesses and their owners. This often involved setting up business bank accounts, obtaining proper working visas, and navigating complex legal requirements—factors that slowed down the process or made the agreement less appealing."

This innovative solution further strengthens 1st Commercial Credit's leadership in global trade financing, providing flexible support for international suppliers and manufacturers selling to U.S. buyers. Approval criteria include recurring sales transactions established for at least one year with similar products. The buyer must also accept and acknowledge the Notice of Assignment and updated remittance details. Factoring fees typically range from 1.59% to 2.5% per 30 days, depending on volume. The program requires a minimum monthly commitment of $150,000 and a 12-month term, with applicable credit insurance fees.

1st Commercial Credit provides invoice factoring and supply chain financing for small to medium-sized companies. For more information, please contact us.

SOURCE 1st Commercial Credit, LLC