Overview
1st Commercial Credit is an independent factoring and receivables finance company based in Austin, Texas. Its office address is on River Place Boulevard in Austin, and the Better Business Bureau lists the business as starting on April 1, 2001, with Raul Esqueda as managing member. The company's own materials describe it as having more than 20 years in business, more than 3,800 clients funded and more than $5 billion advanced, figures we could not check independently and that should be read as marketing claims.
Most factors pick a lane. This one does the opposite. Its homepage lists staffing agencies, trucking fleets, security guard companies, manufacturers, distributors and wholesalers, oilfield service firms, healthcare providers, construction contractors, cable and telecom installers and produce distributors that operate under the federal produce trust rules. Next to straight invoice factoring it sells purchase order financing, export and import trade finance, government receivables funding, asset-based lending, sales ledger credit lines and trade payable financing. Equipment finance is listed as a product for existing clients.
Staffing is the core of the business. The company's press kit describes it as a Texas firm that "specializes in invoice factoring and payroll funding" and its staffing page runs longer than any other industry page on the site. Trucking is the second big focus, with a separate non-recourse program, a fuel card and broker credit checks.
Our overall read: 1st Commercial Credit publishes more pricing than most mid-sized factors, which is a real point in its favour. The numbers it publishes need careful reading, though, because the headline rate is a best-tier price and the site says nothing about contract length, termination or the smaller fees that make up the full cost.
Rates, advances and fees
The headline figure is a factoring rate of 0.69% to 1.59%. It appears on the homepage and on almost every page of the site. The FAQ page carries a disclosure underneath it: the range represents a "tiered pricing structure available to qualified clients," and actual rates depend on how long invoices stay unpaid, the advance percentage, industry, customer credit, invoice size, sales volume and any minimum volume commitment. In other words, 0.69% is the best price for the best accounts, not a typical quote.
The company's own invoice factoring page is more useful. It says rates run from 0.69% to 4% and that the average client pays a discount fee of about 2.25%, depending on how many days the invoices take to pay. That average is the number we would plan around. It sits in the normal range for small-business factoring and is well above the headline figure.
For trucking the published range is different: 1.5% to 3%, with the trucking page saying the fee depends on company size and custom rates are available for fleets factoring more than $100,000 a month. A fuel advance of up to 50% of the load is available for an extra 1%.
Advance rates also vary by program:
| Program | Advance | Fee as published |
|---|---|---|
| General invoice factoring | 75% to 98% by industry | 0.69% to 4%, average about 2.25% |
| Trucking (non-recourse) | 100%, no reserve | 1.5% to 3% |
| Trucking fuel advance | Up to 50% of the load | Extra 1% |
The general FAQ says the advance is typically between 75% and 98% of the invoice, depending on industry, while the invoice factoring page describes advances of up to 90%. The trucking page says carriers are funded at 100% with no reserve, minus the fee. A full advance with no reserve is simpler for owner-operators, but it also means there is no holdback to absorb short pays, so any deduction a broker takes will come back to you in some other form. Ask how short pays and chargebacks are handled.
On other fees, the site says there are no upfront setup fees, no financial statements required, and no facility or audit fees on the invoice factoring program. The trucking page adds "no hidden fees" and no monthly minimum. What we could not find anywhere is a list of transaction fees: wire or ACH charges, invoice processing fees, credit check charges for non-trucking clients, lockbox fees or late-payment charges once an invoice runs past its first period. The FAQ disclosure itself says pricing depends on "any minimum volume commitments," which suggests some contracts do carry minimums. Read our guide to factoring hidden fees before asking for a quote, and ask for every fee in writing.
Contract terms
This is the weakest part of the public picture. The site does not state a contract length, a notice period, an early termination fee or whether the agreement renews automatically. Nor does it publish a sample agreement.
What the site does say is helpful in a few areas:
- Selective factoring. The FAQ says clients can pick which customers and which invoices to factor, or factor part of a large invoice, as long as it is not a one-time deal. That makes it flexible but rules out true one-off spot factoring.
- Notification. Your customers receive a notice of assignment telling them to pay the factor, and the FAQ is direct that factors contact customers.
- Recourse. The trucking program is described as non-recourse, with the company taking the loss if a broker fails to pay because of insolvency. The FAQ is clear that non-recourse does not cover disputed invoices. For staffing, manufacturing and other programs, the site does not say whether agreements are recourse or non-recourse, so assume recourse unless told otherwise.
- Existing liens. If a bank holds a lien on your receivables, the company will ask the bank to subordinate it. Tax liens are handled case by case.
Without a published term or exit clause, you need to read the agreement itself closely. Our guide on how to read a factoring contract lists the clauses that matter most, including term, auto-renewal, minimum volume and termination notice.
Funding speed and service
There are two different speeds to keep apart. The first is account setup. The homepage says initial funding takes 3 to 5 business days, while the invoice factoring FAQ gives a wider window of 3 to 10 business days after the signed agreement is received. The trucking page promises faster onboarding, with setup and initial funding in 24 hours.
The second is ongoing funding. Once an account is running, the FAQ says funds can arrive within 24 hours of invoice verification, and often the same day. The trucking page advertises same-day funding. Funds can go out by wire, ACH, card or mailed check.
On service, the company says it runs a dedicated account team, offers a free invoice upload app and, for carriers, a free transportation management system and 24/7 broker credit checks. It says it decides on additional working capital within hours for established clients. BBB rates the business A+, lists it as accredited since September 2017, and showed no complaints in the past three years when we checked. That is a clean record, though a BBB grade says little about pricing.
Who it's for
1st Commercial Credit fits best for:
- Staffing agencies, including start-ups. The staffing page says it funds temporary agencies "regardless of industry, size, or time in business" and that most agencies fund weekly so payroll is covered by midweek. See our staffing factoring guide.
- Small and mid-sized carriers that want non-recourse cover and a fuel advance from the same provider. See freight and trucking factoring.
- Businesses that need more than factoring, such as an importer that also needs purchase order finance, or a contractor with government receivables.
- Companies with credit problems of their own. The site says low owner credit scores are accepted and that tax liens are handled case by case.
It is a weaker fit for a business that wants a fixed, all-in price before it signs anything, or one that needs a one-off advance on a single invoice.
Pros and cons
Pros
- Publishes a rate range, plus a more realistic average of about 2.25% on its invoice factoring page
- Non-recourse trucking program at a published 1.5% to 3% with full advances
- Wide product menu: PO financing, trade finance, ABL and government receivables alongside factoring
- Selective factoring of chosen customers and invoices
- No setup, facility or audit fees advertised
- A+ BBB rating and no complaints in the last three years at the time we checked
Cons
- The 0.69% headline is a best-tier price; the site's own disclosure ties it to volume, invoice size and payment speed
- No published contract length, renewal or termination terms
- Transaction fees such as wires, lockbox and processing are not listed
- Recourse status for non-trucking programs is not stated
- Initial setup can take up to 10 business days outside trucking
- Self-reported client and funding totals cannot be checked independently
How it compares
Against Charter Capital, another Texas factor, 1st Commercial Credit offers a wider product range and a clearer trucking program, while Charter is more explicit about contract terms, saying it has no long-term contracts and allows termination on notice. Against Viva Capital Funding in El Paso, the trucking offers look similar on paper, with both advertising fuel advances of up to 50%, but Viva advertises a lower rate floor and publishes even less about fees. Businesses that want the most fee detail up front may prefer Universal Funding, which publishes line-item charges. Use our comparison tool to set them side by side.
Frequently asked questions
What does 1st Commercial Credit charge?
Its general range is 0.69% to 4%, and the company says its average client pays about 2.25%. Trucking is quoted at 1.5% to 3%, with an extra 1% for a fuel advance. The 0.69% to 1.59% headline range is tiered pricing for qualified clients.
Is 1st Commercial Credit recourse or non-recourse?
The trucking program is non-recourse for broker insolvency, but not for disputed invoices. The site does not say which applies to other industries, so ask before signing. Our guide to recourse and non-recourse factoring explains the difference.
How fast does 1st Commercial Credit fund?
After setup, funding typically arrives within 24 hours of invoice verification. Setting up a new account takes 3 to 10 business days for most programs and about 24 hours for trucking, according to the company.
Is there a minimum volume?
The company says it funds from $10,000 a month, and its trucking page says there is no monthly minimum. Its own rate disclosure mentions minimum volume commitments as a pricing factor, so confirm whether your quote depends on one.
Can I factor only some invoices?
Yes. The FAQ says you can choose which customers and invoices to factor, as long as the arrangement is ongoing rather than a single transaction.