Nova Scotia, one of Canada’s three Maritime Provinces, is the second-smallest of the ten provinces and also the second-most-densely populated. The beauty of its green countryside and gardens, picturesque seaside towns, and the unspoiled Cape Breton National Park draw many visitors to this history-filled province. Wherever you are in Nova Scotia, you are fewer than 45 miles away from the Atlantic Ocean and commercial fishing was an important part of the economy for generations. However, over-fishing left many families without jobs in recent years. The decline of other economic sectors – coal mining, oil and gas production, and wood products and paper – also increased the province’s unemployment numbers. There are many industries that can benefit from using factoring companies in Nova Scotia.
Today Nova Scotia is experiencing an economic resurgence and residents have launched their own businesses, especially in tourism, the aerospace and military defense industry, and technology. From time to time, these startup businesses, as well as long-established companies, can have financial challenges when they have bills that are due, but they are waiting 30, 60, and even 90 days for their customers to pay. Regardless of a company’s size or longevity, often customers’ long payment terms can disrupt cash flow and cut into a company’s working capital. To combat this kind of cash flow crunch, many companies turn to factoring, an alternative funding method that provides funding fast.
The companies sell their invoices to a factoring firm, which then pays them upfront for most of the value of each invoice. The factoring firm collects directly from the company’s customers and sends the balance of the amount, minus a small factoring fee, once the invoice is paid in full. The company can use this infusion of cash for its regular operating expenses or apply it to growing the business with more staff, more space, more equipment, or whatever else is needed. Companies in Nova Scotia can access this valuable source of funding without having to incur additional debt.
Nova Scotia Factoring by Industry
- Military defense and aerospace industry
- Information and communications technology
- Commercial fishing