A higher percentage of land in North Dakota is farmland than in any other state in the country: more than 90%, making it the nation’s most rural state. Agriculture drives all aspects of the state’s economy. Fortunately the Missouri River to the east is a good source of irrigation and that helps regulate crop production in drought years. North Dakota is among the states with the lowest population density with only 11 people per square mile and many are involved with farming in some way. There are many industries that can benefit from using factoring companies in North Dakota.
Factoring in North Dakota
Both businesses involved with agriculture and other companies in North Dakota can encounter financial challenges when they have much of their cash tied up in accounts receivable. When customers have 30, 60, or even 90-day payment terms or they need to wait until crops are harvested and sold to settle their bills, it is difficult for companies of any kind to keep up with their own bills. Startup companies in particular have trouble getting traditional loans without a long credit history or many assets for collateral.
When companies in North Dakota need cash promptly, many turn to invoice factoring. Factoring bridges the gap between the completion of a job or delivery and the customer’s payment. A short or negative credit history does not pose a problem for a business seeking this kind of funding because the factoring firm evaluates each applicant based on its customer’s creditworthiness, not the applicant’s own credit rating. Business owners can use this infusion of cash for operating expenses or growing their business with new staff, new equipment, new inventory, or whatever they need. The good news is that North Dakota business owners can receive this cash without taking out loans or incurring debt.
North Dakota Factoring by Industry
- Agriculture, especially wheat, barley, beans, and livestock
- Manufacturing, especially farm equipment
- Food processing
- Oil and natural gas
Some of the best Factoring Companies in North Dakota
View the above list of factoring companies in North Dakota for more information.