Rhode Island may be the smallest state in the union, but it is densely populated. It is second only to New Jersey in number of people per square mile. The Ocean State has a strong industrial base that goes back for centuries. Tucked between Connecticut, Massachusetts, and the Long Island Sound, Rhode Island is also a major tourist destination. People from all over the world flock to Newport to tour Gilded Era mansions built by wealthy New York families and enjoy seafood fresh from the Atlantic. There are many industries that can benefit from using factoring companies in Rhode Island.
Factoring in Rhode Island
Manufacturing, tourism, and commercial fishing drive the state’s economy, with many companies of all sizes contributing to the state’s financial power. To keep up with competitors, expand their market share, and maintain a steady cash flow, many Rhode Island companies turn to factoring. These companies, ranging from startups to long-established family firms, benefit from the ability to receive payment right away for their business rather than wait 30, 60, or even 90 days for customers to pay.
Factoring companies purchase their clients’ invoices and pay them the majority of their invoice amounts upfront. The factoring companies manage the collections process and send the clients the balance of what they are owed, minus a small factoring fee, when the invoices are paid in full. The transaction involves no borrowing or incurring debt. Business owners in Rhode Island have learned that invoice factoring is an affordable and convenient easy way to speed up their cash flow. It allows them to use the money that has been sitting in their accounts receivable for their overhead expenses or business growth.
Rhode Island Factoring by Industry
- Manufacturing, including electronics, plastics, jewelry, and metal products
- Ship and boat building
- Commercial fishing