Commercial Truck and Trailer Financing - Leasing

Need transportation equipment to grow your business?

Have you exhausted your efforts at the bank?

If you have found a truck that you want, we can finance it for you.

1st Commercial Credit, LLC provides Commercial Truck and Trailer Financing for start up owner operators and existing owner operators with less than perfect credit.
View Pre-Qualify check list.

In addition, we can also provide freight bill factoring for all trucking companies.

If you are adding trucks or trailers to your existing fleet and have been turned down by other lenders, then 1st Commercial Credit may be the truck finance source for you.

Truck Dealer Finance Program or Owner-Operators looking for truck financing:

Typical monthly terms

2001 to 2002 year model trucks 18– 24 months (C Program only)

2003 year model trucks 30– 36 months (A, B, and C Program)

2004 year model trucks – 42 months (A, B, and C Program)

2005 to 2006 year model trucks – 48 to 60 months (depending on credit and mileage- A, B, and C Program)

2007 year model trucks – 60 months (A, B, and C Program )

2007 Trailers up to 72 Months (A, B only)

How do trucking companies benefit with our truck equipment funding program?

• We can finance your owner operators

• Higher profits for dealers

• Constant referrals

• We act as your in house credit and finance department

Are you looking for an easier way to liquidate used equipment? Tucking companies are always looking for a financing program for trucks & trailers that are coming off their fleet. Liquidating equipment in the past involved either wholesaling their trucking equipment or selling equipment at auction.

1st Commercial Credit can accommodate an in house financing program which trucking companies can use, at no cost to them. Simply stated, trucking companies can now retail their truck inventory while we can approve their retail customers and help them retain more profit on each sale.

PLEASE NOTE: We do not provide truck and trailer financing in Louisiana or Canada.

We currently do not approve applicants that have:

• Delinquent child support

• Bankruptcies that have not been discharged (case by case)

• Tax Liens

• Delinquent installment loans

• Bank statements showing bounced checks

• No past history of installment loans

• No CDL

• No experience in the trucking industry

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"A" & "B" Credit Program: Financing program for Trucking Fleets with good financials or owner operators with good credit.

Very competitive rates and terms available.

- Fast credit decisions – usually within 48 hours. Credit scores 640+.

- 100% non-recourse to the dealer.

- 5 year old or newer Class-8.

- Dealer reserve available with volume targets.

- Application only up to the $150,000.

- Standard terms from 24 months to 60 months. 72 months on trailers.

Typical program calls for 1st monthly payment to start, plus standard processing fee of $550.00

Medium duty / Off-road and Construction equipment a specialty.
Vocational equipment gets special consideration.

News Update - Now you can offer you’re A and B credit customers even lower payments with TRAC deals and residuals from 15% to
35% on most equipment – NEW AND USED!

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"C" Credit Program: Start-ups, First Time Buyers and Challenged Credits

This program is specifically designed to help you obtain financing for credit challenged customers that may have been turned down already.

1st Commercial Credit will work to make the deals happen when others will not. We can handle you’re A – B and C deals.

- Fast credit decisions – usually within 48 hours. Credit scores 585 and up. 100% non-recourse to the dealer.

- Class 8 trucks 2000 or newer,

Vocational vehicles 1998 or newer.
Medium duty – no age restriction.

- Loan amount up to the NTDA wholesale value and all are $1 out leases ($101.00 for challenged credits).

- Standard terms from 24 months to 60 months.

- Typical program calls for 10% cap-reduction plus 1st and last monthly payment to start, plus standard processing fee of $550.

- Medium duty / Off-road and construction equipment a specialty.

Flexible trucking leases for drivers and small fleets

• Start up Owner Operators (Must have CDL with 6 months min. experience)

• Past bankruptcies (If discharged)

• Lower credit scores acceptable

• Renters will qualify

• Co-Signers accepted

Bank Factoring of Accounts Receivable

Until recently, banks have stayed out of the factoring business and for the most part, they still prefer tangible assets to collateralize their lines of credit. Banks realize that receivable finance requires high overhead, professional credit analysis, technology updates and substantial maintenance.

More often than not, bankers find themselves referring out clients that wish to use or require a “Bank Factoring” program. Government regulation pressures on the banking industry have tightened lending parameters, and banking clients with rapid growth will inevitably cause the borrowing leverage to grow to levels which are unacceptable to most banking institutions.

A good banker knows the bank's limitations and will work to preserve at least part of the relationship. Our factoring solutions benefit the bank by keeping a long term relationship with their clients. The customer's business benefits by accessing receivable finance that their bank can no longer provide or extend.

View recent transactions

1st Commercial Credit has become a great outsource for bankers that want to help their clients establish a receivable finance program while still maintaining a close relationship. The process is simple with a more basic credit analysis focusing on the quality of the account debtors (your customers). Most funding transactions (depending on the industry) may take only 3 to 5 working days vs. months by another lending institution.

We are not in the banking business, banks will not have to worry about us competing for their business. 1st Commercial Credit specializes in providing domestic and export receivable finance, purchase order financing, letters of credit, credit analysis, credit protection, collections and accounts receivable management.

Bankers a Referral Source: A good banker knows the bank's limitations and will work to preserve at least part of the relationship. Our factoring programs benefit both the bank by keeping a long term relationship with the customer, and the customer in need of receivable financing that the bank can no longer provide or extend.

While banks typically need a history of profits and audited financials, 1st Commercial Credit provides factoring facilities with much more flexibility with regard to documentation, credit, and record keeping issues. In some cases, companies that qualify for a bank credit line today, may find themselves with inadequate funds for growth in the near future.

1st Commercial Credit can accommodate businesses that have outgrown their bank line by (a) buying out the bank credit line using the receivables to leverage out the buyout or (b) the bank will subordinate the accounts receivable to us in order to provide a factoring arrangement with the prospective client.

Factoring companies establish credit limits by evaluating your customer’s ability to pay, not yours. Your factoring credit facility will be virtually unlimited for future growth and will be based on accounts receivable owed by credible clients.

Business Factoring

The primary advantages of “Business Factoring” for small to medium size companies over lending institutions is that factoring facilities are much easier and practical to put in place.

View recent transactions

While banks typically need a history of profits and audited financials, 1st Commercial Credit provides factoring facilities with much more flexibility with regard to documentation, credit, and record keeping issues. In some cases, companies that qualify for a bank credit line today, may find themselves with inadequate funds for growth in the near future.

1st Commercial Credit can accommodate businesses that have outgrown their bank line by (a) buying out the bank credit line using the receivables to leverage out the buyout or (b) the bank will subordinate the accounts receivable to us in order to provide a factoring arrangement with the prospective client.

For the most part, factoring companies establish credit limits by evaluating your customer’s ability to pay, not yours. Your factoring credit facility will be virtually unlimited for future growth and will be based on accounts receivable owed by credible clients.

Factoring of Businesses is available in days, not weeks.

The process is simple with a more basic credit analysis focusing on the quality of the account debtors (your customers). Most funding transactions (depending on the industry) may take only 3 to 5 working days. At 1st Commercial Credit, we make receivable financing easy to obtain with minimal paperwork. This financial solution involves very little underwriting. Our clients can enjoy the benefits of our prompt service and begin to use their funds within days of completing an application.

Using Accounts Receivable as Collateral

Businesses that sell on credit terms have a hidden asset that most owners do not realize can be used for collateral. 1st Commercial Credit specializes in collateralizing and financing accounts receivable. The receivables are pledged as collateral and the business may draw cash against the eligible accounts receivable at any time. Factoring, also known as business receivable financing is not a loan, so there is no need to make payments or create debt to your business.

Business Qualifications for Business Receivable Financing

Our financing programs can accommodate companies with seasonal or uneven sales patterns or start-up operations with no financial base to rely upon. Any business can qualify for receivable financing if it generates sales on open credit terms to customers with financial credit strength. Most of our clients are trying to find a solution to finance their growth or whose past earnings will not justify a traditional loan or credit line increase.

What Industries Qualify for Receivable Factoring?

Every industry is evaluated differently because no industry invoices the same method. Not all factoring companies accept every industry. As a rule of thumb, your business must sell to a good credit worthy account debtor (customer), a receivable or invoice that can be verified or has an acceptance (signed off) by the account debtor. Receivable financing is available to all industries that provide services, or deliver products to commercial accounts. The sale must be "final sale" with no contingencies or disputes. The service or product must be completely delivered in order for an invoice (receivable) to be eligible for funding.

Invoice Factoring

If you offer credit to commercial accounts, then invoice factoring is a flexible way to replenish the cash flow gap that is caused by slow paying customers. At 1st Commercial Credit, we make factoring easy to obtain with minimal requirements and usually can have a same day decision. If your business sells to commercial accounts on credit terms, then your business may qualify for this type of financing. The approval process is simple to evaluate and we can expedite initial funding in 3 to 5 working days. Factoring accounts receivable has become the preferred financial tool in obtaining flexible working capital for small to medium size businesses.

What is Factoring of Invoices?

Receivable Factoring converts invoices sold on credit terms for immediate working capital. It has become a simple, fast and easy way to access business cash flow. 1st Commercial Credit is a factoring company that specializes in evaluating accounts receivable and can make a prompt approval decision. The credit is determined by the financial strength of the customer (Buyer or Account debtor), not the client (The seller of the invoices/receivables). This method involves very little underwriting and allows our prospective clients to acquire funds within days of completing an application.

Business owners realize that there is no need to borrow money from a bank in order to offer credit terms to customers. Factoring receivables is similar to a receivable loan offered by a bank. It is considered a purchase of the receivables at a discount and not a loan. This enables the business owner to obtain immediate cash flow collateralized by the outstanding receivables without going through cumbersome paper work and waiting weeks for a decision.

Invoice Financing is available in days, not weeks.

At 1st Commercial Credit, we make invoice finance a simple process with minimal paperwork. We make decisions primarily on the invoicing process and the credit strength of the account debtor (buyer). We specialize in evaluating and financing receivables and can make a prompt decision within a day. This financial option involves very little underwriting. The approval process is fast and we can employ funds within 3 to 5 working days after completing an application.

The Hidden Collateral: Invoices Generated on Credit Terms.

Companies that invoice on credit terms have a hidden asset that most business owners do not realize can be used for collateral. 1st Commercial Credit specializes in collateralizing on invoices sold on credit. Usually Net 30, 45 or 60 day terms. The receivables are pledged as collateral and the business may draw cash against the eligible invoices at any time. Invoice factoring, also known as accounts receivable finance is not a loan, so there is no need to make payments because your are using collateral that already exist or create debt to your business.

How can I borrow money using my invoices as collateral?

If your business is in a cash flow crunch due to slow paying customers, then welcome to the club. There are thousands of business owners going through everyday challenges trying to keep their business afloat. You would think it would be lack of sales, but you would be surprised to know that many small businesses start with a small business loan, savings accounts or credit card and later realize the much more operating capital is needed than originally planned.

The number one failure in business today is the lack of working capital. There is a cash flow cycle that many business owners are not aware of if they sell on a credit bases. If you do not plan ahead, you will run into a brick wall once you are out of money to continue day to day operations. If you can think of the last time you drove for a long road trip, you probably planned where you would fuel up and how much money you were going to need for fuel cost. An 800 mile drive may require 3 fill ups. The same planning should be done in a business selling credit sales, it is going to need cash fuel to fill up the checking account more often than you think. If you offer net 30 day terms on your invoices, then plan to get paid in 40 to 50 days on good paying accounts and 51 to 75 days on slower paying customers.

How much money will you need for financing your customers? That’s right, you are now becoming the interest free bank for your customers. In addition to financing your customers, you will need cash flow for payroll, inventory replenishment and fixed expenses, your business adventure should plan to have enough working capital for 120 days before receiving your first payment. Add up 4 months of your total cost of goods and fixed expenses based on the planned sales and you should be able to figure out how much money you should have to sustain a successful business.

If you don’t have access to more working capital, what’s the other alternative? If your business today is increasing sales, has credit worthy commercial customers that owe you money and your business is free and clear of any liens. Your business may qualify for invoice factoring.

Invoice factoring is a financing method used by many fast growing businesses. Factoring companies specialize in purchasing your invoices and advance you cash the same day or within 24 hrs of verification. The process to set up takes about 5 to 7 working days and the business owners do not need good credit scores for approval. Factoring companies rely mainly on the credit worthiness of the customer because the invoice for delivered product or service is the collateral used to fund, not your credit score or financial statements.

With this type of financing, your business growth is unlimited. Your sales are converted to immediate cash and can pay your vendors with early payment discounts, make payroll and pay your bills for every day operating expenses.

How much does invoice factoring cost? Factoring companies charge discount fees based on the value of the invoice. If your business accepts credit cards, then you are already factoring to a degree. For example, your credit card merchant charges you a discount fee of 3% and you receive 97%. A factoring company works almost the same way but the advance and discount fees may vary depending on volume and industry.

Learn how some companies find creative ways to improve cash flow without alienating their customers or stringing out their suppliers.

A prospective client of ours (a CEO) was having cash flow problems (due to growth in his business). His CFO presented him with two options:

1. Pressure customers to pay more timely, which might cause them to go running to a competitor.

2. Pay suppliers more slowly and increase payables outstanding by another 15 days. This option would negatively affect the Company’s excellent rating with Dun and Bradstreet.

The CEO contacted us to see if there was an alternative financing method that we could suggest. He did not want suppliers to carry the cash flow burden. They were already providing a great value-added service and played an important strategic partnership role in the production of inventory. They provided in-house inventory (raw materials, etc.) without cost, until it was used. This increased the company’s cash flow because the cost of goods sold was invested in finished products only, not raw materials. Since the cost of inventory was calculated on finished goods only, inventory turns were exceptional.

In an effort to keep his suppliers current and still accommodate new customer growth by extending credit, he opted for debt free financing. He did not want a traditional line of credit that would require audit fees, personal guarantees, a pledge of hard assets (as collateral), appraisal fees, monitoring fees and other fees that are usually involved with conventional credit lines.

So what did we offer him? Accounts receivable financing - a debt-free type of financing that many companies are turning to. It allows them to convert accounts receivable into a working line of credit (without the debt) and increase cash flow without pressuring customers for collection.

Unlike larger banks that focus on large corporate customers, accounts receivable finance companies have emerged to help smaller companies that need receivable factoring. Accounts receivable financing can be established with as little as $10,000 a month in sales for smaller companies, and with as much as $10 million in sales per month for larger companies. Not all factoring companies accept every industry.

Is Accounts Receivable Factoring Right For Your Business?

Small to medium size businesses find themselves struggling to finance the growth of sales on net 30 day credit terms. Too much growth to charge accounts will put a cash flow shortage and may cause problems in meeting payables to vendors, payroll and other fixed expenses.

The first thing that naturally comes to a business owner is to go to the local bank for help. Due to the highly regulated bank industry on business loans, if you are lucky enough to meet all the requirements, you may go out of business or lose out on business opportunities by the time your loan gets approved. Then you find out later that the amount of the loan seemed substantial at the time but your business growth exhausts the funds and now your back to square one, only this time the bank will not extend you more credit.

In summary, you are now in the finance business for your customers, paying interest on money tied up in receivables, and no more funds available to sustain future business growth.

So where do businesses that have this problem get their financing?

Factoring companies specialize in financing accounts receivable. Accounts receivable factoring is the selling of outstanding invoices or receivables at a discount in exchange for immediate cash to your business. Imagine if you could convert your receivables to cash flow in 3 to 5 working days, and then collect all future invoices within 24hrs. This is a financing tool that many business owners are taking advantage of everyday.


What are the benefits of accounts receivable factoring?

- Funding of accounts receivable usually can happen in 3 to 5 working days.
- No financial statements are needed.
- No up-front fees to set up an account.
- Converts dead money in receivables to instant cash flow.
- Credit limits are determined based on your customers ability to pay, not your business credit.
- Eliminates the need to borrow money or give up your ownership to private investors.
- Provides professional credit analysis of your accounts and new customers that are going to be sold on credit terms.
- Loans create debt on your balance sheet whereas factoring does not.
- Provides the ability to pay vendors with net 10 day cash discounts which will offset some of the cost.