Small businesses in Alabama seeking capital to grow or expand their operations have more options available to them than ever before. Thanks to alternative financing choices such as accounts receivable financing also known as invoice factoring, businesses that might not otherwise qualify for traditional small business loans can now get the financial assistance they need.
From Huntsville, in the north, to Mobile and Gulf of Mexico region to the centrally located business hub of Birmingham, the state of Alabama has a diverse and long-standing business history. Many industries thrive in this southern stronghold, including trucking, freight and transportation, manufacturing (both business-to-business and business-to-consumer), aerospace and defense, forestry, and agriculture.
Accounts Receivable Financing Has a Multitude of Uses
Whatever business your business is in, you can find local, invoice factoring companies in Alabama to help bolster your business’s working capital as well as grow or expand into new territories or markets. Businesses choose accounts receivable financing for a wide number of reasons, including:
• To improve business cash flow month after month
• To obtain cash in a hurry without lengthy and complicated application processes
• To better manage or support their current working capital
• To make a bulk-item purchase of raw materials,
• to hire or cover payroll for a large number of temporary employees quickly
• to dramatically ramp up production due to seasonal business demand or unexpected demand
• To meet rapid growth business demands
• To fulfill an extraordinarily large order or sale
• Or even to pay for ordinary bills and expenses during tough times
To Learn more about the benefits that invoice factoring can provide for businesses in Alabama click below:
How Will Your Business Use Invoice Factoring?
As you can see, accounts receivable financing companies in Alabama can provide cash to businesses for a wide range of reasons. Unlike a bank that puts strict limits on how you can use money that is loaned to you, invoice factoring companies have very few restrictions. An invoice factoring company might have 20 different clients and each of them is likely to use factoring for a different operational purpose. It is a flexible solutions for businesses that are paid on net 15, 30, or longer terms.
How Manufacturing Businesses in Alabama Use Accounts Receivable Financing
Manufacturing has made a significant comeback in Alabama over the past several years due to relatively low cost of living and a large, non-union labor force. This sector, which has an eons-long history of partnering with accounts receivable financing, looks to continue to have a major presence in the state in the foreseeable future.
In the B2B area, suppliers who manufacture products for use by larger corporations tend to struggle with cash flow issues. This is because suppliers can often wait 45- or 60-days to get paid by their customer, which can put a real strain on business operations and cash flow. The good news is that these types of circumstances make manufacturing an ideal industry for accounts receivable financing. Current, high-dollar-value invoices are perfectly suited for factoring because these large corporations usually have good-to-excellent credit scores.
Find Specialized Freight Bill Factoring Companies in Alabama
In addition to manufacturing, freight, trucking and transportation firms commonly make use of freight factoring companies in Alabama and elsewhere. Transportation is a slim margin sector with large expenses and slow payment periods. Small carriers generally must secure their bid and deliver their load to its final destination before they collect payment. Trucking firms with a fleet of only three or four carriers can find it difficult to negotiate or demand faster payments from their customers. In the industry, use of freight bill factoring companies is more the norm than the exception, particularly for small outfits.
Fortunately, you can find many trucking factoring companies in Alabama that specialize. Regional or even state freight factoring companies are abundant. As such, these companies are familiar with the ins and outs of freight and transportation. In this way they might be able to offer advice regarding cash flow management or handling of your receivables.
Many of these freight factoring companies offer fuel cards as an added convenience to drivers. As fuel is a significant expense for trucking companies, many freight factoring companies allow payments to be deposited directly on these fuel cards. This way, the driver can use the card to refuel, same as they would a credit or debit card. It depends on the individual freight factoring firm but these fuel cards are often offered as a complementary service.
Take a look at the local Alabama factoring companies or click on the side for a fast quote on factoring services from a top company with offices near you