Newfoundland and Labrador Factoring Companies

If you’re looking for Newfoundland and Labrador factoring companies with physical locations near you, you’re unfortunately likely to come up short. However, there are many providers who serve the area and can provide you with lightning-fast service remotely. To be matched with the best Newfoundland and Labrador factoring companies for your needs, start with a complimentary rate quote.

Our Invoice Factoring Guide is also available to answer most questions about how factoring works, costs, and getting started, and you’ll find general information about invoice factoring in Newfoundland and Labrador below.

Invoice Factoring Services in Newfoundland and Labrador

Running a business in Newfoundland and Labrador is unlike putting down stakes anywhere else in Canada. Whether you operate in St. John’s, Mount Pearl, Corner Brook, or any of the towns, Mother Nature has the potential to derail your plans at any point. For those who thrive in spite of these harsh conditions, seasonality and cash flow shifts will create additional challenges. Invoice factoring services help you easily navigate these issues by accelerating payment on your B2B invoices.

Invoice Factoring Services in Newfoundland and Labrador

How Accounts Receivable Financing Works

Your invoices can be turned into immediate cash through financing or factoring. Whereas financing uses your invoices as collateral on a loan you have to pay back, factoring involves selling the invoices at a discount, so there’s nothing for your business to pay back. The process is simple.

  • Go to work. Serve your customers the way you always do.

  • Invoice your client. Send invoices to your clients as usual and send a copy to your factoring company, or if your factoring company offers invoice creation, let them handle it for you.

  • Get paid immediately. Receive up to 95 percent of the invoice’s value right away. Cash is typically sent via ACH and arrives in your bank account within a couple of business days, so there’s no need to visit a physical bank. If time is a concern, be sure to choose a factoring company that offers accelerated payments, such as same-day options.

  • Receive your final payment. You receive the final balance minus a small factoring fee when your client pays.

Benefits of Factoring

Businesses across Newfoundland and Labrador leverage factoring because it offers many advantages over traditional funding methods.

  • Approval is fast and easy. As long as you have creditworthy B2B clients, you’re likely to be approved.

  • You get your cash quickly. You can get paid as you earn money, rather than waiting weeks or months for clients to pay or a loan to disburse.

  • It’s debt-free funding. Your balance is cleared when your client pays their invoice, so there’s nothing for your business to pay back.

  • It can fortify your business. Factoring can help stabilize cash flow and allow your business to avoid debt, so it actually grows stronger over time.

  • Advances scale. You’ll automatically qualify for bigger advances as your business grows, so it’s easy to get the right level of funding as needed.

How Newfoundland and Labrador Businesses Use Factoring

Because businesses choose how to spend their money, Newfoundland and Labrador businesses leverage factoring for a variety of reasons.

  • Handle seasonality. Cash flow gaps are more likely to occur during the off-season, and when ramping up for peak season, so many businesses leverage factoring to cover general expenses during these crucial periods.

  • Stabilize cash flow. Mother Nature can make work and payments a bit unpredictable. Factoring allows your business to get paid as money is earned, giving you more predictability.

  • Cover payroll. Ensure your team is paid like clockwork, even when your cash flow makes it difficult.

  • Strengthen your team. Bring on new people to help your business reach its goals and ensure everyone has the training necessary to thrive.

  • Address equipment needs. Purchase, repair, and maintain equipment to ensure seamless operation.

  • Order materials or inventory. Ensure you’re prepared to meet customer demand and pay suppliers in a timely manner.

  • Comply with laws. Meet all city, provincial, and national requirements to avoid penalties and fines.

  • Handle emergencies. Be ready for the unexpected and maintain smooth operations even when things don’t go right.

  • Grow your business. Accept more work or larger orders, invest in marketing, and more.

Businesses and Industries That Leverage Invoice Factoring Services

Many fishing, tourism, transportation, oil and gas, and shipbuilding businesses rely on factoring. However, it works for most B2B businesses that invoice their clients, so it’s also commonly leveraged in other industries such as:

Additional Services Offered with Accounts Receivable Financing in Newfoundland and Labrador

When you partner with an experienced A/R funding company, you’ll also receive access to a variety of additional services and perks to help your business thrive, such as:

  • Credit checks. Minimize the risk of slow payments and non-payment. Your factoring company will run credit checks on your clients before you extend credit so you can make informed decisions.

  • Collections. Factoring companies collect invoice balances for you as part of the standard process, which can save you hours each week.

  • Invoice prep. Some factors also provide invoice preparation services to streamline the process even more.

  • Industry-related perks. When you choose a factoring partner that specializes in your industry, you may gain access to other tools and services designed for your unique needs. For instance, some freight factoring companies also provide fuel advances, fuel discount cards, tire savings programs, and load board access.

  • Alternative funding. Oftentimes, factoring companies offer other types of financing to ensure they can support your company as it grows and needs change.

Other Alternatives to Small Business Loans in Newfoundland and Labrador

Banks don’t always want to bet on businesses in Newfoundland and Labrador, so it can be difficult for some to qualify for traditional small business loans. However, factoring also isn’t always the ideal solution for businesses sometimes. Because of this, your factoring company may offer other forms of funding in addition to factoring, such as:

Operating a Business in Newfoundland and Labrador

There are over 15,000 businesses in Newfoundland and Labrador, government statistics show. Naturally, many of these rely on the province’s natural resources or directly serve the residents. The province offers some supportive services for businesses. Individual cities such as St. John’s and Corner Brook also have dedicated resources to support entrepreneurs.

Newfoundland and Labrador’s Business Economy

Much of Newfoundland and Labrador’s economy derives from seasonal industries, which sets it apart from other provinces quite a bit in terms of output and activities. For instance, about one-third of Newfoundland and Labrador’s GDP comes from the extraction and processing of crude oil, minerals, fish and forest resources, government sources show. With more than 29,000 kilometres of Atlantic coastline, industries such as fishing, offshore oil and gas, tourism, transportation, and shipbuilding also play a crucial role.

Starting and Growing a Newfoundland and Labrador Business

Starting and growing a business in Newfoundland and Labrador can be challenging. Guides on the official province website and the St. John’s and Corner Brook websites can walk you through permitting and licensing requirements. 

However, as your company grows, you’re likely to require additional working capital injections to help cope with seasonality, expansion, and other concerns. Invoice factoring can help. Tap the button below for a free rate quote to ensure your business is prepared.

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Factoring results estimation is based on the total dollar value of your invoices.
The actual rates may differ.

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Get an instant factoring estimate

Two columns
Vertical
Horizontal
Overview
Name Total
"{{getWooProductName}}" has been added to your cart
Have a promocode?
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Factoring results estimation is based on the total dollar value of your invoices.
The actual rates may differ.

GET YOUR FREE FACTORING QUOTE!

PREFER TO TALK? You can reach us at 1-866-477-1778