The province of Newfoundland includes Labrador, one of Canada’s most northern regions. The island of Newfoundland is less than half the size of Labrador, but is home to more than 90 percent of the province’s population. Many residents of Labrador are members of the Inuit and other Native American tribes, while Newfoundland is home to many people from British or Irish families. More than half a million people live in this province on the easternmost edge of continental North America. There are many industries that can benefit from using factoring companies in Newfoundland and Labrador.
The province is home to a variety of small and medium-sized businesses. Like companies around the world, businesses in Newfoundland and Labrador can experience cash flow challenges, especially when companies must wait 30, 60, or even 90 days for their customers to pay them. To speed up their cash flow, companies can 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 opportunities for new beginnings to business owners in Newfoundland and Labrador.
Newfoundland and Labrador Factoring by Industry
- Service industries
- Timber and wood products
- Commercial fishing