Benefits of Factoring
How Alberta Businesses Use Factoring
Businesses and Industries That Leverage Invoice Factoring Services
Most of Canada’s natural gas and crude oil comes from Alberta, so it’s no surprise that the oil and gas industry often turns to factoring to keep up with supply and demand. Other key industries in the province, such as agriculture, forestry, finance, mining, and manufacturing, also routinely leverage factoring. However, most businesses can tap into the funding solution as needed. A few examples of industries served include:
Additional Services Offered with Accounts Receivable Financing in Alberta
Credit checks. Know the creditworthiness of your clients before you extend trade credit with customer credit checks. Invoice preparation. Some invoice factoring companies will manage invoice preparation for you, freeing you to focus more on the core areas of your business. Collections services. Because factoring companies provide collections services as part of the process, they’re chasing payments, not you. Industry-specific perks. When you work with a factoring company specializing in your industry, they will likely offer special perks tailored to your needs. For instance, freight factoring companies often offer load boards, fuel discount cards, fuel advances, and more.
Alternative funding. Once established with a factoring company, you may gain access to additional funding methods that can help as your business grows.
Alternatives to Small Business Loans in Alberta
Due to their lengthy approval processes, slow payouts, and rigid requirements, small business loans are not always a viable option. Many factors offer a variety of funding solutions to ensure your needs are met.
Operating a Business in Alberta
There’s a lot to love about operating a business in Alberta. With provincial corporate tax rates ranging from around three percent to roughly 16 percent, Alberta tends to stay reasonably moderate, allowing the province to attract more businesses and grow while supporting quintessential Canadian communities. Alberta was also named the top Canadian province for financial freedom, as reported by the Fraser Institute.
Alberta’s Business Economy
The oil and gas industry, along with mining, have dominated Alberta’s business economy for years, as the Business Council of Alberta reports. Real estate, business and commercial services, retail and wholesale, and construction round out the top five industries, which comprise 65 percent of Alberta’s economy combined. Manufacturing, transportation, utilities, and healthcare are also strong industries in the province.
Starting and Growing an Alberta Business
The official Alberta website offers a wealth of information for those hoping to start a business in the province. The challenges change as your business becomes established. For instance, growing companies often have cash flow shortfalls. This is normal and to be expected because your expenses are higher as you’re growing, and you’re trying to pay them with yesterday’s lower revenues. This is where solutions like invoice factoring come in. If you need a quick injection of working capital, contact one of the factoring companies at the top of this page or click the link below to request a complimentary factoring rate quote.