Latest news with #1stCommercialCredit
Yahoo
23-05-2025
- Business
- Yahoo
1st Commercial Credit Launches $20 Million Ledger Lines Program, Partners with Banks to Expand Working Capital Access
New revolving receivable-based facility fills critical lending gap for mid-market companies facing limited ABL and bank loan options AUSTIN, Texas, May 23, 2025 /PRNewswire/ --1st Commercial Credit, LLC, a national leader in accounts receivable financing, trade payable finance, and invoice factoring, announces the launch of its new Ledger Lines program—providing revolving credit facilities of up to $20 million, backed by receivables and tailored for high-growth businesses. With Ledger Lines, businesses generating at least $3 million in monthly invoices can access up to 90% of receivable value as working capital. The structure avoids traditional debt by documenting the facility as a continuing receivable purchase, providing fast and flexible funding without complex loan covenants. "Ledger Lines are designed for companies that are too big for traditional factoring but not well-served by bank lending or rigid ABL structures," said Raul Esqueda, President of 1st Commercial Credit. "By working in partnership with banks and advisors, we're helping companies replace high-cost debt and unlock working capital without disrupting their existing financial relationships." Key Benefits of the Ledger Lines Program: Credit lines from $3 million to $20 million Up to 90% advance on eligible receivables Funding in as little as 3 weeks No traditional debt added to the balance sheet Banks may subordinate receivables while maintaining existing term loans Optional credit insurance to reduce risk Available to industries such as manufacturing, staffing, transportation, security, and importers The company reports growing demand from investment bankers, restructuring advisors, and bank workout departments who are turning to 1st Commercial Credit to support clients with cash flow constraints, MCA obligations, or seasonal volatility. Ledger Lines enables a seamless transition from high-cost loans and unscalable ABL products to receivables-based funding that grows with the business. To qualify, companies must maintain up-to-date financials, demonstrate profitability, and have a Chief Financial Officer overseeing internal operations. A Deposit Account Control Agreement (DACA) is also required to control receivable proceeds. Solving the $3M–$10M ABL Gap With many traditional asset-based lenders pulling back due to rising defaults and low margins, businesses in the $3M–$10M range are often left with few viable financing options. According to Esqueda, the complexity and cost of underwriting ABL deals at this size often exceed the returns. "Ledger Lines provide a scalable alternative to ABL," said Esqueda. "We remove the bottlenecks of traditional credit underwriting and give clients a funding solution that adjusts with their receivable base—not their collateral mix." Backed by Technology and Trade Credit Protection Ledger Lines builds on 1st Commercial Credit's $6 billion funding milestone achieved in 2024, and its $200 million in receivables insurance coverage. The program is powered by the company's proprietary MyBizPad® platform, which automates funding requests, and real-time receivables tracking—ensuring operational efficiency and transparency for clients. Contact Information: 1st Commercial Credit, LLC6500 River Place Blvd, Building 7, Suite 250, Austin, TX 78730(800) About 1st Commercial Credit Founded in Austin, Texas, 1st Commercial Credit, LLC is a privately-owned factoring company, a leader in receivable-based financing, purchase order financing and trade payable finance. Serving businesses across the U.S. and select international markets, the firm specializes in non-debt capital solutions for manufacturing, staffing, transportation, and importing companies—empowering businesses to scale without traditional borrowing. View original content to download multimedia: SOURCE 1st Commercial Credit, LLC Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
12-02-2025
- Business
- Associated Press
1st Commercial Credit Introduces 2nd Position Factoring Behind Traditional Banks
AUSTIN, Texas, Feb. 12, 2025 /PRNewswire/ -- 1st Commercial Credit, LLC, a trusted factoring company with over 22 years of experience, is excited to introduce its 2nd Position Factoring program. This innovative financing solution is tailored for businesses with an existing bank term loan that require additional working capital without disrupting their primary lending relationship. Unlike traditional subordinated financing, 1st Commercial Credit's 2nd Position Factoring enables businesses to leverage their accounts receivable while maintaining their existing bank loan. This approach provides immediate liquidity, improved cash flow, and the ability to scale—without incurring additional debt or restrictive covenants. Since invoice factoring is a buyer/seller transaction rather than a loan, it serves as a flexible alternative to conventional lending. Through this process, 1st Commercial Credit transitions receivable assets into cash assets via a discounted sale, allowing businesses to unlock capital efficiently. The debtors will be required to pay 1st Commercial Credit for the purchased Invoices. Important Note: Businesses with bank lines of credit or Senior lenders that require (Or Noticed) account debtors to remit payments to a dedicated lockbox do not qualify for this factoring program. Eligible businesses must be in good standing, profitable, and experiencing growth. Additionally, SBA Loans issued under the Economic Injury Disaster Loan (EIDL) program have been subordinated, and 1st Commercial Credit will initiate funding before the SBA subordination process is completed. 'Even with a bank term loan in place, many businesses still struggle with cash flow,' said Raul Esqueda, President of 1st Commercial Credit. 'Our 2nd Position Factoring program provides a seamless solution by delivering additional working capital without disrupting the bank's security interest. Too often, business owners are denied factoring due to an existing senior bank line and end up resorting to high-cost Merchant Cash Advance loans. Our program offers a smarter alternative, ensuring access to the funds they need without excessive costs or additional debt.' Key Benefits of 2nd Position Factoring with 1st Commercial Credit: Non-Subordinated Financing – Works alongside existing bank lines without requiring subordination from the bank. Flexible Working Capital – Unlocks cash tied up in receivables for operational expenses and growth. Fast Approval & Funding – Businesses can access funds quickly without lengthy underwriting. No Additional Debt – Factoring is based on receivables, not loans, keeping liabilities off the balance sheet. This program is particularly beneficial for companies in manufacturing, staffing, distribution, and transportation that require supplemental financing beyond traditional bank credit lines. It's also great news for bankers looking to help their clients access additional capital while maintaining their existing bank loans without requiring subordination. 1st Commercial Credit's 2nd Position Factoring offers a seamless, non-subordinated solution that unlocks working capital and supports business growth. 1st Commercial Credit or contact us at 1-800-876-6071.
