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1st Commercial Credit Unveils $20 Million Ledger Lines Program

1st Commercial Credit, LLC, a prominent player in accounts receivable financing and invoice factoring, has announced the launch of its revolutionary Ledger Lines program. This initiative aims to cater specifically to mid-market businesses by providing them access to revolving credit facilities of up to $20 million. The Ledger Lines program is designed to alleviate the financial constraints that many companies face, particularly those that generate a significant amount of invoices monthly.

Understanding the Ledger Lines Program

The Ledger Lines program allows businesses with at least $3 million in monthly invoices to unlock up to 90% of their receivable value as working capital. Unlike traditional loan options that often come with stringent covenants, Ledger Lines operates as a continuing receivable purchase. This structure not only expedites access to funds but also offers more flexibility tailored to high-growth businesses.

Raul Esqueda, President of 1st Commercial Credit, emphasized the program's strategic importance, stating, "Ledger Lines are designed for companies that are too big for traditional factoring but not well-served by bank lending or rigid ABL (Asset-Based Lending) structures." This partnership with financial institutions enables companies to phase out high-cost debt while enhancing their working capital without jeopardizing existing banking relationships.

Key Benefits of Ledger Lines

The Ledger Lines program boasts several critical advantages:

• - Credit lines ranging from $3 million to $20 million
• - Up to 90% advance on eligible receivables
• - Funding can be accessed within 3 weeks
• - No additional traditional debt added to the balance sheet
• - Flexibility for banks to subordinate receivables while maintaining existing term loans
• - Optional credit insurance to mitigate risk
• - Accessibility for various sectors including manufacturing, staffing, transportation, security, and importers

This program comes at a time when many businesses are struggling to secure funding due to the tightening of lending practices from traditional asset-based lenders, particularly those catering to mid-market entities.

Addressing the $3M–$10M ABL Gap

There is a notable financing gap for businesses operating in the $3 million to $10 million range as traditional asset-based lenders have begun to retreat due to rising defaults and slim margins. This reality has left many businesses struggling with few options available for financing. Esqueda remarked, "The complexity and cost of underwriting ABL deals at this size often exceed the returns." The Ledger Lines program positions itself as a scalable solution by removing the bottlenecks inherent in traditional credit underwriting processes, adjusting to the clients' receivable base instead of their collateral mix.

Harnessing Technology for Efficiency

The launch of Ledger Lines is underpinned by 1st Commercial Credit's significant achievements, including a funding milestone of $6 billion achieved last year and a substantial $200 million in receivables insurance coverage. The program utilizes the company's proprietary MyBizPad® platform, which automates funding requests and provides real-time tracking of receivables. This innovation ensures operational efficiency and transparency, ultimately enhancing the user experience for businesses seeking these financial solutions.

Conclusion

With the Ledger Lines program, 1st Commercial Credit is stepping up to serve mid-market companies that are in need of financial relief and operational growth tools. By partnering with banks and advisors, they are fostering an environment where businesses can thrive without the constraints of traditional lending practices. This initiative is poised to reshape access to working capital for high-growth firms looking to navigate the complexities of modern finance effectively.