1st Commercial Credit Expands Factoring Facility to $10MM for Security Guard Firm

1st Commercial Credit expanded an invoice factoring facility from $5 million to $10 million for a security guard company specializing in safeguarding private properties. This growth, achieved in just the past 12 months, underscores the flexibility and scalability of the factoring arrangement.

The decision to adopt factoring was influenced by a recommendation from the security guard company's investment banking firm. The company opted for a buyer/seller structured agreement to efficiently manage their receivable assets.

Raul Esqueda, president of 1st Commercial Credit, emphasized the increasing favorability of the factoring industry among companies seeking to convert receivable assets into cash while maintaining a debt-free balance sheet. This financing approach continues to attract interest from private equity and investment banking firms, highlighting its strategic advantages for sustained growth.

Factoring remains a valuable financial solution for businesses, offering the dual benefits of rapid capital access and financial stability, enabling companies to thrive and seize opportunities in an ever-evolving business landscape. Businesses are able to rapidly transform accounts receivable into immediate cash, addressing working capital needs and facilitating operational expansion without the burden of additional debt.