Emerging Pallet Manufacturer Receives $2 Million in Invoice Factoring from 1st Commercial Credit

The pallet industry serves many clients, including brokers and other pallet manufacturing companies, and directs billing to American manufacturers.

FREMONT, CA: "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," says Raul Esqueda, President of 1st Commercial Credit.

1st Commercial Credit has finalized a $2 million invoice factoring facility for a rapidly growing pallet manufacturer in the Mid-West region. The startup pallet company initially got funding from a smaller factoring company, but it eventually raised more money than its original partner could provide. This prompted the investigation of alternative funding sources, which led to the identification and choice of First Commercial Credit.

Trade payables financing is just one of the many financial solutions that 1st Commercial Credit provides to its clients. Eligible clients can benefit from funding for raw materials and services related to core charge payables if they operate in the pallet manufacturing industry. Pallet manufacturers that finance receivables must closely monitor payables to core exchanges to reduce risks and minimize offsets.

Although the industry has a lot of room to grow, brokers usually take a while to pay because of standard billing procedures. Brokers frequently pay their invoices only after receiving payment from their clients, even though this needs to be stated clearly in sales contracts. It can result in outstanding balances that are more than sixty days old. It should be noted that trade payable, raw material and core payables financing are not offered separately. Clients should weigh all of their accounts before deciding.