Prince Edward Island, or PEI as it is often called, is the smallest Canadian province and with around 150,000 residents. It also has the smallest population of the three Maritime Provinces. It is reachable by boat and ferry or by air, but that doesn’t keep huge numbers of tourists coming over to see its lush green landscapes and windswept beaches every summer. They also come to enjoy fresh produce from family farms and fresh seafood from the fishing boats. There are many industries that can benefit from using factoring companies in Prince Edward Island.
The island does not have a large business community, but a number of small and medium-sized companies flourish in a variety of industries. Any company can have financial challenges from time to time and many can have trouble meeting overhead expenses while waiting for their customers to pay. In addition, waiting 30, 60, or even 90 days for customers’ payments can hold back companies that have enough current operating capital, but are poised to grow their business and need an infusion of cash for new inventory, new staff, or new equipment.
Invoice factoring can provide a fast and affordable way to bridge that gap between sending out invoices and getting paid for them. Factoring companies purchase their clients’ invoices and pay them the majority of their invoice amounts upfront. After collecting on those invoices, the factoring companies send their clients the balance of the amounts, minus a small factoring fee. The transaction involves no borrowing or incurring debt. Companies on Prince Edward Island can find that factoring is an easy way to speed up their cash flow. It allows them to use the money that has been sitting in their accounts receivable for overhead expenses or business growth.
Prince Edward Island Factoring by Industry
- Agriculture, especially potatoes and soybeans
- Commercial fishing, including lobsters, oysters, and mussels