The state of Nebraska is part of the huge Great Plains, with hundreds of miles of flat lands and rolling hills once traveled by Native Americans and westward-bound pioneers. Today that windswept land represents the nation’s “breadbasket,” and is one of the leading sources of wheat, corn, and other grains in the country. Cattle herds now graze where the buffalo once roamed. There are many industries that can benefit from using factoring companies in Nebraska.
Factoring in Nebraska
Agriculture is key to the state’s economy and many companies throughout the state serve that industry. However, the Cornhusker State is becoming increasingly diversified with a greater variety of businesses represented especially in its largest city, Omaha. The state is home to a companies ranging from small startups to family firms with long histories. Regardless of a company’s size or longevity, it’s not usual for a business to go through financial challenges, particularly those caused by customers’ long payment terms. Waiting weeks or months for payment can disrupt cash flow and cut into a company’s working capital.
To combat this cash flow crunch, many companies turn to factoring, an alternative funding method that provides funding fast. When a company sells their invoices to a factoring firm, they receive the bulk of what they are due upfront. The factoring firm then collects directly from the company’s customers and sends the balance of the amount, minus a small factoring fee, when the invoice is paid in full. Whether the company uses the cash for operating expenses or for new equipment, new staff, or sales and marketing, the funds are not a loan and do not incur additional debt. Nebraska business owners have discovered that factoring is both convenient and affordable.
Nebraska Factoring by Industry
- Agriculture, especially wheat, corn, and sorghum
- Livestock and meat packing, especially cattle and hogs
- Manufacturing, especially electronics, auto parts, farm machinery, and chemicals
- Oil and natural gas