1st Commercial Credit announces $350,000 funding for staffing agency with both IRS and State Tax lien issues exceeding over $285,000.
In the past, Traditional lenders and factoring companies adhere to conservative parameters and prefer to run from clients that are suddenly indebted with the IRS. The risk of levies hovering over a client can be enforced at anytime by the IRS or state agencies, leaving lenders and factoring companies at a loss.
Some lenders are not able to accommodate clients with a tax lien even if they are able to obtain an IRS subordination. Most SBA backed banks are not able to lend money to clients if the funds are to be used to pay a tax lien leaving businesses with very little options.
President of 1st Commercial Credit, Raul Esqueda says “We are exploring new ways in getting invoice factoring services to tax levied companies. We have found that some business under certain parameters will qualify for our Pre-Payment Plan funding program. Most factoring companies will not fund a client unless it has a subordination from the taxing entity and that can take weeks. 1st Commercial Credit will fund prior to a subordination, and prior to a payment plan in place. This type of funding separates us from all the other factoring companies.”
1st Commercial Credit is taking on more risk in funding clients under this situation and is a new territory to further explore. Please call 1 800 876 6071 for more information about our invoice factoring services or request quote.