With its strategic location on the central east coast and its welcoming environment for corporate headquarters, Delaware is a business powerhouse. Considering its small size and small population, it is home to a disproportionate number of millionaires and successful businesses. In addition, the state has been heavily industrialized for more than two centuries, starting with the DuPont family’s gunpowder mill built in 1802 that launched the state’s continuing leadership in the chemical field. There are many industries that can benefit from using factoring companies in Delaware.
Factoring in Delaware
The state is also home to many small and medium-sized companies in a variety of industries. Regardless of size or longevity, these companies can encounter cash flow challenges, especially when customers’ long payment terms cut into working capital. The potential revenue shortfall comes between the time a company completes a job and submits its invoice and the time the customer pays that invoice. To bridge that gap, many companies in Delaware turn to factoring, an alternative funding method that provides cash up front.
The company can sell their invoices to a factoring firm, which pays them promptly for most of the value of each invoice. The factoring firm then collects directly from the company’s customers and sends on the balance of the amount, minus a small factoring fee, once the invoice is paid in full. Companies can use this infusion of cash for operating expenses or growing the business with new staff, equipment, inventory, or whatever is needed. Factoring brings capital to Delaware business owners without them having to take out loans and incur additional debt.
Delaware Factoring by Industry
- Chemical production
- Financial services
- Agriculture, especially poultry, fruits and vegetables
- Food processing