1st Commercial Credit recently funded more than $35 million in USDA poultry and dairy contracts.
A mix of food suppliers, financial consultants and bankers referred clients to 1st Commercial Credit to provide accounts receivable factoring services to fulfill orders solicited by more than 240 organizations that received basic ordering agreements (BOA). Primary buyers of the food supply, sometimes referred to as prime contractors, were awarded the agreements by the USDA.
This food program was designed to help out farmers and families in the U.S. who have been negatively affected by the COVID-19 pandemic. The food products contained meals in boxes that were provided to millions of families across the U.S.
1st Commercial Credit made this type of transaction to allow clients to pay food suppliers within terms while offering primary buyers 14- to 30-day credit terms. 1st Commercial Credit provides supply chain financing by accommodating both trade payable finance for clients to pay food suppliers and also receivables factoring for product delivered. Some clients only needed to factor the invoices to continue paying suppliers, while others required both trade payable and receivable financial services.
