Minnesota is a state of great contrasts, with its thriving business and cultural centers of Minneapolis, St. Paul, and Bloomington. It also has large sections of forests, farmlands, lakes and rivers. The state is full of waterways: its name comes from the Dakota tribe’s word for “clear blue water” and one of its nicknames is the “Land of 10,000 Lakes.” Minnesota is also full of successful businesses, ranking among the nation’s wealthiest and best-educated states; its residents consistently enjoy one of the highest standards of living in the country. There are many industries that can benefit from using factoring companies in Minnesota.
Factoring in Minnesota
Not surprisingly, Minnesota’s economy is widely diversified, with businesses ranging from huge corporations to small mom-and-pop businesses of all kinds. Even in a thriving economy, company owners in Minnesota often find that waiting weeks or months for customers to pay is holding them back from expanding their businesses or from paying their fixed expenses on time. Customers’ long payment terms can disrupt cash flow and cut into a company’s working capital. Many companies throughout the state are turning to factoring their invoices to speed up their cash flow.
The companies sell their invoices to a factoring firm, which then pays them upfront for most of the value of each invoice. The factoring firm collects directly from the company’s customers and sends the balance of the amount, minus a small factoring fee, once the invoice is paid in full. The company can use this infusion of cash for its regular operating expenses or apply it to growing the business with more staff, more space, more equipment, or whatever else is needed. Minnesota company owners like this type of funding because it brings in capital without taking on loans and incurring additional debt.
Minnesota Factoring by Industry
- Natural resources, especially iron ore
- Agriculture, especially timber, corn, and wheat
- Printing and paper products
Some of the best Factoring Companies in Minnesota
- Commonwealth Capital
- Great Plains Transportation Services
- GreenBridge Finance
- Marquette Commercial Finance
- Spectrum Commercial Services
- TCI Business Capital
View the above list of factoring companies in Minnesota for more information.