Invoice Factoring in Wisconsin

Wisconsin Invoice Factoring

The small business activity in Wisconsin is a bit of a mixed bag. On the one hand, there is an abundance of bright talent coming from the University of Wisconsin Madison as well as Marquette University, the Milwaukee School of Engineering and Lakeland College.

Unfortunately, that talent isn’t translating into startup activity in Wisconsin after graduation.  According to a report by Ewing Marion Kauffman Foundation, Minnesota ranked dead last in the nation for startup business activity.1 Topping the list for states was Montana.

The study also revealed that Milwaukee was ranked the second worst Metro area for startup activity, ahead of just Pittsburgh, Pennsylvania.2  By contrast, Austin, Texas was ranked number one Metro Area for startup activity. Apparently, many are choosing to relocate to nearby Chicago, Illinois or other locales.

No matter what state you operate in, small businesses that make credit sales often endure long wait times for repayment from customers (also known as account debtors). This can create a cash flow and net working capital shortage which can stymie growth. It also hampers your ability to meet payroll, make scheduled debt payments or capitalize on a business opportunity. Without access to a bank line of credit, your business could be in jeopardy.

Instead of waiting 60 or 90 days for payment or paying lofty rates to a merchant cash advance company, consider invoice factoring. Factoring is the sale of outstanding invoices to a third-party buyer, providing quick, up-front cash. Depending on your industry, factoring can really improve business’ financial condition. Wisconsin invoice factoring might be the solution.

Common Invoice Factoring Industries in Wisconsin:

  • Staffing
  • Food and Beverage Distributors
  • Transportation
  • Manufacturing

It helps to start factoring receivables with a company with experience in a particular industry. Your business might consider a non-recourse factoring agreement if you’ve billed a large amount to a single customer in a cyclical industry such as energy, manufacturing or staffing. Non recourse factoring transfers the credit risk of your customers to the factoring company.

Invoice Factoring Companies in Wisconsin

If your business is located in or near Wisconsin, you have more small business financing options than you probably realize.  To meet the unique financing needs of these businesses, invoice factoring companies, known as ‘factors’, are available to provide alternative financing for companies that have been turned down by traditional lenders. Below are some invoice factoring companies with locations or operations in Wisconsin:

  • Paragon Financial Group (Milwaukee)
  • Riviera Finance (Eagan)
  • TCI Business Capital

As we mention in our factoring company review on Riviera Finance, they offer proprietary Quickpay and Greenlight programs for cash-strapped businesses in the Great Lakes/Midwest region (including Minnesota, Iowa, Nebraska and North Dakota).

In addition to accounts receivable factoring, their services include invoice financing, freight factoring, payroll funding, business financing and small business funding. In fact, Riviera recently executed a $100,000 small business factoring line of credit for a truck driver that decided to strike out on his own. Starting with two owner operators and a few of their own rigs they needed business capital until their insurance company agreed to cover their new business venture.

If your startup or small business has been denied credit by a local bank, consider factoring invoices for immediate funding. Your chances of raising capital are much higher because, unlike a traditional bank loan or small business line of credit, invoice factoring incurs no additional indebtedness. So unlike a bank, it is the credit of your late-paying customers (known as account debtors) that matters to the factor, not your businesses.

Receive a free, no-obligation factoring quote today.