Invoice Factoring in North Carolina

North Carolina Invoice Factoring

The diversity of North Carolina’s geography (mountains, farmland, beaches, cities, rivers, etc.) makes it an appealing locale for so many. This is one reason the state often tops a variety of ‘Best Place to Work/Live/Retire’ lists.

North Carolina also has a thriving economy and innovative workforce. Considering the state has some of the best higher education (Duke, Wake Forest, University of North Carolina, etc.) we are seeing a growing sense of entrepreneurship staying in-state.

One problem that many fast-growing startups and small businesses face is access to capital. Despite being home to a major banking sector (Banc of America is headquartered in Charlotte), many North Carolina businesses encounter cash flow constraints and even negative net working capital.

Instead of giving up equity ownership in their company in exchange for investor capital, an increasing number are turning to alternative financing options such as accounts receivable factoring or invoice factoring.

Major Invoice Factoring Industries in North Carolina:

  • Manufacturing
  • Tourism
  • Trucking
  • Aerospace and Aviation

North Carolina Manufacturing

North Carolina is famous for the manufacturing of furniture. It is actually home to the largest furniture trade show, store and manufacturer in the world.1 But many of these are made via credit sales, inhibiting profitability. The textile industry is also very strong in the state. North Carolina is also home to the largest textile mill industry in the world.2

North Carolina Tourism

The miles of beautiful beaches of the Outer Banks have made North Carolina a premier vacation destination for decades. But another area has finally gained the recognition it has long deserved- Asheville.

We spoke with a river rafting guide for French Broad Adventures who absolutely loved living in Asheville because of the great outdoors and renowned craft breweries.3 He also relayed to us, begrudgingly, that the population has roughly tripled since he’s lived there. What is bad for his sense of isolation is good for the many small businesses that service the new residents of the state.

North Carolina Trucking

Because of its central location on the East Coast, North Carolina has a plethora of trucking companies. In North Carolina, the automotive, trucking and heavy machinery industries are expected to experience 25% growth over the next five years.4

But trucking companies know that delayed payments comes with the territory. Trucking companies are typically not paid until the load is delivered. In the meantime, there are expenses that need to be paid out immediately such as fuel, tolls and maintenance. This cash flow crunch often leads to trucking companies having to turn down additional business.

Other Invoice Factoring Businesses in North Carolina

With its moderate temperatures, North Carolina is posing a real challenge to the traditional retirement states such as Florida and Arizona. As such, there are a number of small businesses popping up to serve their specialized needs.

In addition to the industries mentioned above, there are niche companies such as home health care staffing companies. And considering the size of the Baby Boomer population (10,000 of which retire every single day) the demand for such services isn’t likely to slow down any time soon. Unfortunately, staffing companies generally endure cash flow issues, which hampers their ability to maximize business opportunities.

Invoice Factoring Companies in North Carolina

North Carolina’s main industries lend themselves to credit sales and, inevitably, slow paying customers. As such, there are a large number of companies that have decided to start factoring invoices to improve cash flow and profitability. Given the opportunity, a number of invoice factoring companies, known as factors, have sprung up in the state, while others have been serving small businesses for decades. Here are some invoice factoring companies with headquarters in North Carolina:

  • Commercial Credit Group (Charlotte)
  • Aberdeen Funding (Waynesville)
  • Freight Collect, Inc. (Shelby)

You might be surprised that there are just a few companies headquartered in North Carolina, considering the robust economy of the Tar Heel state. There are several other factoring companies that have branches or satellite offices (such as Riviera Finance) in North Carolina but we prefer factors that are headquartered in the state.

This is because they really understand the industries and well-connected to resources that can help serve their small business customers best. Both of the aforementioned companies are headquartered in North Carolina and are members of the International Factoring Association, IFA.

If your small business has been turned down for a traditional loan and is experiencing cash flow issues, consider factoring receivables. Since factoring is an asset sale, not a loan, your business incurs no additional debt. This may not be such an issue now, but when rates normalize, interest payments can hamper future growth. Some invoice financing companies have asset based lending rates as low as a few percent.