While being most famous for the Kentucky Derby and fast racehorses, but the state’s business community also runs at a fast pace. The Bluegrass State is home to a wide variety of companies, including many businesses that have been family-owned for generations. Whether they are distilling fine whiskey or distributing farm products, small and medium-sized companies make up the backbone of Kentucky’s economic power. There are many industries that can benefit from using factoring companies in Kentucky.
Factoring in Kentucky
Regardless of the size of a company, sometimes they can face financial challenges revolving around payment cycles. When customers take 30, 60, or even 90 days to pay their invoices, a company may have trouble meeting their fixed expenses. To keep up with the pace of business in Kentucky, companies can speed up their cash flow with factoring.
How factoring works is that the factoring company purchases their client’s invoices and pays the client a large portion of the amount upfront. The factoring company collects on those invoices from the client’s customers and when the customer pays that invoice in full, the client receives the balance, minus a small factoring fee. Kentucky business owners can meet their overhead expenses, while building a reserve for growth and expansion, all without incurring debt. It’s an increasingly popular method for ensuring fast payment in Kentucky.
Kentucky Factoring by Industry
- Agriculture, including tobacco, grain, and horse farming
- Natural resources, especially coal
Some of the best Factoring Companies in Kentucky
View the above list of factoring companies in Kentucky for more information.