Coal has been king in West Virginia since the important fuel source was discovered there in the 1740’s. The mining industry has also played a major role in the state’s economy. Today, the Mountain State economy has become increasingly diversified, and the state is home to several small startup firms as well as large multinational corporations working in a wide variety of fields. There are many industries that can benefit from using factoring companies in West Virginia.
Factoring in West Virginia
Regardless of a company’s size or longevity, it’s not usual for companies to face financial challenges, particularly those caused when customers take weeks or months to pay their invoices. This can create a temporary cash shortfall and cut into that company’s working capital. To keep a more consistent, steady cash flow, many companies in West Virginia are turning to factoring their invoices.
When a company sells their invoices to a factoring firm, they receive the bulk of that invoice amount upfront. The factoring firm then collects payment directly from the company’s customers, taking over the often difficult collections duty. When the invoice is paid in full, the factoring company forwards the balance of the amount to their client, minus a small factoring fee. Some companies will use the cash for growing their business: investing in new staff, new equipment, new technology, or new sales and marketing strategies. Others will use it for operating expenses. West Virginia business owners have learned that factoring makes sense when they need funds quickly without incurring debt.
West Virginia Factoring by Industry
- Natural resources, especially coal, oil and natural gas
- Timber, especially hardwoods
- Manufacturing, especially steel, aluminum, and chemicals
- Agriculture, especially poultry, cattle, and dairy products