Vermont may be one of the country’s smaller and less populated states, but it is a leader in certain natural resources, including marble and granite quarrying, talc mining, and maple syrup bottling. Since it was first visited by French explorers more than 400 years ago, the area has drawn visitors from around the world for snow skiing, fishing, hunting, and sightseeing. There are many industries that can benefit from using factoring companies in Vermont.
Factoring in Vermont
Vermont is home to many businesses related to tourism along with companies of all sizes and industries. Tourism-related firms can experience cash flow challenges with the state’s high and low season cycles, but any company in Vermont can also experience financial challenges. Many of these challenges could be eased by the businesses receiving payments from their customers more quickly. Regardless of a company’s size or longevity, often customers’ long payment terms disrupt cash flow and cut into a company’s working capital. To resolve this cash flow challenge, many companies in Vermont turn to factoring, an alternative funding method that provides funding fast.
The companies sell their invoices to a factoring firm, which pays the company upfront for most of the value of each invoice. Then the factoring firm collects directly from the company’s customers and sends on the balance of the amount, minus a small factoring fee, once the invoice is paid in full. Companies can use this infusion of cash for operating expenses or growing the business with new staff, equipment, inventory, or whatever is needed. Factoring brings timely revenues to Vermont business owners without them having to take out loans and incur additional debt.
Vermont Factoring by Industry
- Natural resources, including granite, marble and talc
- Agriculture, including maple syrup production, fruit trees, and dairy farming