As the smallest of Canada’s three territories, the Yukon Territory has only one city: Whitehorse, the territorial capital, with about 36,000 residents. Much of the territory has a subarctic climate, with exceptionally cold winters and short summers. Its natural beauty during the short summers draws outdoors enthusiasts to enjoy fishing, hunting, riding, and camping. There are many industries that can benefit from using factoring companies in the Yukon Territory.
This area supports very few large businesses, but small and medium-sized businesses in a variety of industries contribute to the territorial economy. Some of these businesses will, at some time or another, face financial challenges revolving around payment cycles. When customers take 30, 60, or even 90 days to pay their invoices, a company can have trouble meeting their fixed expenses. To keep up with overhead costs and to grow their business, companies can increase their cash flow with factoring.
How factoring works is that the factoring company purchases their client’s invoices and pays the client a large portion of the invoice value upfront. The factoring company collects on those invoices from each client’s customers and when the customer pays that invoice in full, the client receives the balance, minus a small factoring fee. Then business owners can meet their overhead expenses, while building a reserve for growth and expansion, all without incurring debt. It’s an increasingly common method for ensuring fast payment in the Yukon Territory.
Yukon Territory Factoring by Industry
- Mining, especially lead, zinc, silver, and gold