AUSTIN, Texas, Feb. 21, 2024 /PRNewswire/ — 1st Commercial Credit, LLC has finalized a $2 million invoice factoring facility for a rapidly expanding pallet manufacturer in the Mid-West region. The start-up pallet firm initially secured funding from a smaller factoring company but eventually surpassed the financial limits of their original partner. This led to the exploration of new financing options, ultimately resulting in the discovery and selection of 1st Commercial Credit.
Raul Esqueda, President of 1st Commercial Credit, LLC, stated, “For more than 21 years, we have provided invoice factoring facilities to pallet manufacturers. Our new client occupies a unique niche in the market by offering specialty-sized pallets, which are not typically available from the average pallet company.”
1st Commercial Credit offers an array of financial solutions to its clients, encompassing trade payables financing among others. In particular, for businesses in the pallet manufacturing sector, eligible clients can take advantage of financing for raw materials and services related to core charge payables. Financing receivables for pallet manufacturers requires careful monitoring of payables to core exchanges to mitigate potential risks and limit offsets.
The pallet industry caters to a wide array of customers, such as direct billing to manufacturers in the U.S., other pallet manufacturing firms, and brokers. While the sector presents considerable growth prospects, payments from brokers are typically delayed due to customary billing routines. Even though it’s not explicitly stated in sales contracts, brokers often pay their invoices only after they have received payments from their clients, leading to outstanding balances extending beyond 60 days.
Please note that trade payable, raw material and core payables financing is not available as a standalone service. Clients must factor all accounts before considering these options.
For more information about 1st Commercial Credit and financial services offered for the pallet industry, please visit our website at www.1stcommercialcredit.com or contact us online.
SOURCE 1st Commercial Credit, LLC
