Manitoba, in the geographic center of Canada’s southern provinces, is one of the nation’s “prairie provinces,” along with its neighbors to the west, Saskatchewan and Alberta. With miles of wheat, oats, barley, and canola fields, it is also home to large cattle and sheep ranches. Not surprisingly, food processing is a major provincial employer. With the discoveries of oil and natural gas, the province has taken a leadership position in that industry as well. There are many industries that can benefit from using factoring companies in Manitoba.
Factoring in Manitoba
While much of the provincial economy is based in natural resources, Manitoba has an increasingly diversified economy with many small and medium-sized businesses representing many different industries. Manitoba is home to many businesses in their beginning stages, including startup firms. Many established companies are also poised for new growth – with opportunities to expand their staff and facilities, increase their sales and marketing, or build their inventory. However, when companies lack the working capital to expand because they are waiting 30, 60, or even 90 days for their customers to pay, growth plans can be stopped before they get started.
To speed up their cash flow, a growing number of companies in Manitoba are beginning to turn to factoring, an alternative funding source that does not require them to take out loans or incur debts. The companies sell their invoices to a factoring firm, which pays them most of the value of each invoice. The factoring firm then collects directly from the company’s customers and sends on the balance of the amount, minus a small factoring fee, once the invoice is paid in full. Companies can use this infusion of cash for operating expenses or growing the business. Factoring brings the opportunities for new beginnings to business owners in Manitoba.
Manitoba Factoring by Industry
- Agriculture, especially grains, livestock, potatoes, and oil-producing seeds such as sunflowers
- Oil and natural gas