Tree Farms Grow Receivables, Too
Houston June 6, 2007 – It is always fun to talk about new business. We recently signed up a new client company in a business you may not think of as factoring, a tree farm. They are great folks, down to earth and honest. They came referred to us by one of our other tree farm clients. There is nothing like referrals from existing clients! We did not set out to be tree farm factoring specialists, but we sure enjoy being outstanding in our field!
All kidding aside, in our business it is always about character. And we have found that tree farms seem to attract folks of good character. So, if you are a tree farm owner looking for kindred spirits, look no farther. It is still planting season and folks all across the country are planting trees. Tree farms who sell to commercial growers, retailers and resellers can deliver more trees by digging up those accounts receivable and selling them to American Prudential.
By using their existing Accounts Receivable to provide the cash needed to deliver more product, a healthy tree farm can easily double its volume in one season alone. Traditional working capital is hard to come by for tree farmers and the seasonal nature of their need does not appeal to most financing sources.
But factoring to gain immediate cash flow and avoid long term debt easily allows the tree farmer to make the business pay for itself. So, no matter what the home building industry does the factoring tree farm will have no long term debt to service if the bottom falls out of the economy and the ripple reaches all the way to the farm.
Give us a call while there is still time to move inventory.
Posted: June 6th, 2007 under Factor Talk.
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