1stcommercialcredit.com extends credit facilities to good business houses that have a healthy outstanding amount receivable from their purchasers. This type of loan that does not require any collateral security but considers only the total outstanding amount receivable by a business is called factoring. This is also called as accounts receivable financing. Depending upon the strength of the purchasers and their ability to make prompt repayments, the factoring company decides how much could be lent. The interest rate is charged on a monthly basis and it is usually 0.69% to 1.59% per month. Most of the sales of any business is on credit basis. So it is natural that the business would face shortage of working capital every now and then. Sensing the urgency of the situation the factoring companies lend thee required loan amount in a few days. The business must have completed the sale and should have actually transferred the goods to the purchaser to be eligible to get this factoring loan. The factoring companies would not lend on the basis of sales invoices alone. Businesses that are able to collect the money from the purchasers in a short time can have a lower rate of interest on the loan.