Montana may be the nation’s fourth largest state, but it is also one of its least populated states. Only six states have fewer residents and only Alaska has a lower population density. Much of Montana is open plains, with miles of wheat, barley, oats, rye and other grains waving in the wind that blows down from Canada. Those broad plains also support herds of cattle and sheep, another important part of Montana’s economy. There are many industries that can benefit from using factoring companies in Montana.
Factoring in Montana
Businesses in Montana range from those related to agriculture and mining to a variety of service businesses supporting residents and the tourists who visit the state’s many dude ranches and trout streams or Glacier National Park. Some of these businesses can encounter financial challenges from time to time, especially when they have to wait 30, 60, or even 90 days for customers to pay them. That gap can be especially difficult when they don’t have the working capital on hand to cover their payroll, overhead expenses, and other bills.
To help bridge that gap in payment, many companies in Montana turn to factoring, an alternative funding method that provides funding fast. A company can speed up their cash flow by selling their invoices to a factoring firm, which pays the company upfront for most of the invoice value. The factoring firm collects on the invoice from the company’s customers and sends on the balance of the amount, minus a small factoring fee, once the invoice is paid. Companies can turn their accounts receivable to cash to use for operating expenses or growing the business with new staff, equipment, inventory, or whatever is needed. Factoring brings timely revenues to Montana business owners without them having to take out loans and incur additional debt.
Montana Factoring by Industry
- Agriculture, especially grains and livestock
- Mining, especially copper, lead, silver, and coal