1st Commercial Credit

Best for: U.S. distributors, importers and manufacturers with a $100,000+ order from a creditworthy buyer at a 25%+ margin, willing to factor all their receivables with one company.

Not for: Businesses wanting PO funding on its own, orders under $100,000, thin-margin resellers, or New York and Louisiana companies (California: confirm).

Lender List verdict: 1st Commercial Credit is a founder-led Austin factor that publishes its prices (0.69% to 1.59% on invoices, 1.5% to 5% per 30 days on PO funding) and handles an order from supplier to collection. The catch: PO money comes only with full factoring, and a 75-day cycle at the top of the range costs about 41% APR.

1st Commercial Credit at a glance

1st Commercial Credit funds purchase orders at 1.5% to 5% per 30 days for clients that also factor their invoices with it.

What is 1st Commercial Credit?

1st Commercial Credit, LLC is an independent Austin factoring company, started in 2002, that says it has funded more than $5 billion for over 3,800 clients. In February 2026 California licensed it as a commercial finance lender.

How 1st Commercial Credit purchase order financing works

1st Commercial Credit pays your supplier on a confirmed customer order, then factors the resulting invoice, charging 1.5% to 5% per 30 days.

• Prerequisite: You must factor your receivables with 1st Commercial Credit first; PO funding is not sold separately.
• What it covers: Finished goods, light assembly and, for established clients, production runs.

How the funding cycle works

1st Commercial Credit is repaid from your customer's payment on terms under 90 days.

1. Your creditworthy customer issues a purchase order.
2. It checks margin and buyer credit, then pays supplier, freight and duties.
3. Goods arrive; you invoice the customer.
4. It factors that invoice; the advance retires the PO funding.
5. Your customer pays it in full; you get the balance minus fees.

1st Commercial Credit advance rate, factor fee, and recourse

1st Commercial Credit advances 80% to 90% of each invoice and charges tiered factoring fees of 0.69% to 1.59%, plus 1.5% to 5% per 30 days on PO funding.

• Factor fee: Tiered by days outstanding, industry, customer credit and volume; we treat it as per 30 days (Lender List assumption); no setup fees.
• Recourse: Both; non-recourse covers customer insolvency, not disputes.
• Contracts and minimums: Lender does not publish (StartupOwl: 6- and 12-month terms, $20,000 to $50,000 monthly minimums).

Worked example: a $100,000 order with $70,000 of goods. The supplier is paid on day 0; on day 30 you factor the invoice at a 90% advance ($90,000), clearing the PO advance; the customer pays on day 75. Pro rata, the low end costs $1,050 (PO) plus $1,035 (factoring) = $2,085; the high end $3,500 plus $2,385 = $5,885. You keep $27,915 to $24,115 of the $30,000 margin, about 13% to 41% APR.

1st Commercial Credit requirements

1st Commercial Credit requires a U.S. business at least one year old, a 25% margin on the order and an existing factoring account.

Pros and cons

1st Commercial Credit's strength is published pricing; its weakness is the factoring tie-in.

Pros

• Publishes both its factoring and PO rate ranges
• One company handles supplier payment, factoring and collection
• Funds light assembly and production, not just finished goods
• Covers freight and import duties on imported orders
• BBB A+ and accredited, with no complaints in three years

Cons

• No standalone PO funding; you must factor all accounts
• $100,000 order floor and 25% margin rule out smaller deals
• PO FAQ excludes New York and Louisiana (California unclear)
• Top of the PO range (5% per 30 days) is roughly 61% simple annualized

1st Commercial Credit vs. Star Funding vs. SouthStar Capital

1st Commercial Credit publishes a full PO price range; SouthStar Capital quotes only.

Star Funding and SouthStar Capital figures are from their own sites, with third-party figures labelled, checked 2026-10-26.

Choose 1st Commercial Credit if you want posted prices and one funder for the whole cycle. Choose Star Funding if you want no charge for funds held longer and no unused-line fee. Choose SouthStar Capital if you are a startup.

1st Commercial Credit alternatives on Lender List

The closest 1st Commercial Credit alternatives are Star Funding and SouthStar Capital, plus King Trade Capital for large PO deals.

• Star Funding — PO funding up to 100% of goods
• SouthStar Capital — factoring and PO funding open to startups
• King Trade Capital — PO funder for companies using $3 million+ a year
• Browse all purchase order financing and invoice factoring on Lender List

Frequently asked questions about 1st Commercial Credit

1st Commercial Credit is a legitimate Austin factor and PO funder operating since 2002.

Is 1st Commercial Credit Legit? Yes. 1st Commercial Credit, LLC has operated from Austin since 2002, reports over $5 billion funded, holds a BBB A+ rating (accredited since 2017, no complaints in three years) and a California lender license (NMLS 2565436). Independent 1st Commercial Credit reviews are few, and our news search found no lawsuits or regulatory actions.

What Is 1st Commercial Credit's Phone Number? 1st Commercial Credit's main line is 1 (800) 876-6071, which it says is answered 24/7, and its Austin office number is (512) 215-4759. Headquarters is 6500 River Place Blvd, Building 7, Suite 250, Austin, TX 78730, and quote requests can also go through its website forms.

Is 1st Commercial Credit Recourse or Non-Recourse? Both. 1st Commercial Credit offers recourse factoring, where unpaid invoices come back to you, and non-recourse factoring, which covers a customer's insolvency but not invoice disputes. The price difference is not published, so ask how the fee changes before signing a contract.

Will My Customers Know I'm Factoring? Yes. 1st Commercial Credit sends your customers a one-time notice of assignment, and invoices carry its remittance address, so customers pay it directly. Because PO funding is repaid by factoring the resulting invoice, buyers on financed orders will know too.

Can I Get PO Financing From 1st Commercial Credit Without Factoring? No. 1st Commercial Credit offers purchase order financing only to businesses that already factor their receivables with it, because the PO advance is repaid by factoring the invoice the order creates. If you want PO money without a factoring contract, compare King Trade Capital or Star Funding.

How Much Does 1st Commercial Credit Charge? 1st Commercial Credit charges 1.5% to 5% per 30 days on PO funding and 0.69% to 1.59% on factored invoices, with no setup fees. On our $100,000 order example with 75 days outstanding, total fees ran $2,085 to $5,885, or about 13% to 41% APR.

Does 1st Commercial Credit Fund California and New York Businesses? Not New York for PO financing, and California is unclear. Its PO FAQ excludes California, New York and Louisiana, but a February 2026 California lender license and a California hire to sell PO facilities suggest California PO may now be available; confirm with the lender.

What Are the Best 1st Commercial Credit Alternatives? For purchase order funding, the closest matches on Lender List are Star Funding, which funds up to 100% of the goods, and SouthStar Capital, which offers factoring and PO funding to startups. Larger companies using $3 million or more a year in PO funding can also compare King Trade Capital.

Last verified 2026-10-27. Pricing and terms are provider-stated or third-party-reported and vary by offer; confirm with the lender before applying.