Connecticut may be one of our smaller states, but it spans several different worlds. It has an urban, cosmopolitan side, with its proximity to New York City. With its growing industrial base, Connecticut is also a leader in manufacturing. Yet it also is a state with pleasant small towns and beautiful countryside, from its Atlantic and Long Island Sound beaches to the east to its pastures and hills to the west. Just as the state represents a variety of lifestyles and opportunities, its business community is also very diverse. The Nutmeg State is home to a large number of small and medium-sized companies in many different industries. There are many industries that can benefit from using factoring companies in Connecticut.
Factoring in Connecticut
These companies vary from small technology startups to old family-owned companies in business for generations. However, regardless of size or longevity, any company can experience cash flow challenges when they have bills to pay, but they have to wait 30, 60, or even 90 days for payments from customers. To bridge that gap between completing their work and receiving payment on their invoices, many businesses in Connecticut turn to factoring those invoices.
How this works is the factoring company purchases the invoices from its client and pays them a large portion of the amount due upfront. The client then has that working capital in hand to meet overhead expenses or build a reserve for growth and expansion. After the factoring company collects on those invoices from the client’s customers, it pays the client the remaining funds, minus a small factoring fee. With factoring, Connecticut business owners can receive cash upfront on their accounts receivable without taking out a loan or incurring debt. It has proven to be a popular option for many companies in the state.
Connecticut Factoring by Industry
- Manufacturing, especially weapons, engines, hardware
- Financial services, especially insurance
- Agriculture, especially poultry and dairy products
Some of the best Factoring Companies in Connecticut
View the above list of factoring companies in Connecticut for more information.