Learn more about how 1st Commercial Credit provides invoice factoring for an animal feed distributor that obtains an additional $1.5 million in cash flow.
Austin, TX -- (ReleaseWire) -- 05/14/2020 --1st Commercial Credit (1stCC) funds receivables for an animal feed distributor that obtains an additional $1.5 million in cash flow. This transaction included a subordination negotiated by 1st Commercial Credit's underwriting department that allowed the client to maintain its bank line of credit.
1stCC has made an initial funding of accounts receivable for a nationwide distributor of animal feed. The company offers high quality feed for retailers and farms across the country. During these times of uncertainty within the economy, animal feed distributors are still striving while other industries are stale or have slowed down.
The company recently encountered a surge of request from retail outlets demanding more product. Due to the demand, a cash flow shortage between credit term sales and payables due became inevitable. This is a very common situation when sales increase on credit terms and trade payables begin to come due.
1stCC was able to negotiate with the existing bank and allow the line of credit to remain. This was very important for the client since they already had a substantial line of credit with the bank. The bank granted to 1stCC a subordinated lien on specific accounts that allowed the client access to an additional $1.5 Million to use as growth capital.
About 1st Commercial Credit
1stCC is an accounts receivable financing company that offers cash flow solutions and supply chain finance for any business selling on credit terms. It has a very experienced staff in getting bank subordinations as was required in this transaction. 1stCC has been providing financing for distributors for over 19 years along with other financial services that include purchase order financing, trade payable financing and inventory loans.