Factoring Financing in Canada
Canít afford to wait up to 60 days to get paid by your customers? This is a common situation for many business owners in Canada that often leads to cash flow problems. However, you can solve this problem by using factoring financing. Factoring enables you to finance your invoices, which improves your cash flow. It provides the funding you need to cover business expenses - and more importantly - to take on new customers with confidence.
We are a leading factoring company in Canada and work with companies in most industries. We have offices in Toronto (Ontario) and can offer services in all provinces.
Factoring rates as low as 1.5%. Advances as high as 90%.
Click here for an online quote or call (866) 730 1922
(subject to monthly volume and industry).
Financing for small and medium sized companies such as manufacturers,distributors, commercial suppliers and service companies
Financing for trucking and commercial transportation companies
Specialized financing for companies that provide security guards to commercial, industrial and government sites
Specialized funding for staffing and temporary employment in the business and medical services field
Trade financing solutions
Financing for small and medium sized distributors, importers, trading companies and resellers
What is invoice factoring financing?
Trying to qualify for conventional business financing in Canada can be very difficult, especially for small and mid sized businesses. Unfortunately, few small companies can meet the long list of complex requirements that conventional institutions usually insist on.
Invoice factoring is an alternative way to finance your company. It allows you to sell your slow paying invoices from credit worthy customers to a factoring company. In exchange for the invoice, the factoring company advances a payment to your company. You can use these funds to cover existing expenses or to take on new business. When used correctly, it can provide your with predictable cash flow and allow you to take on new customers.
What are the benefits?
The most important benefit of factoring your invoices is the improvement of your cash flow. However, the program has a number of other benefits including:
- Minimize slow payment concerns
- Flexible line which increases with your sales
- Fast application and deployment time
- Simple qualification and approval requirements
How does it work?The program is fairly straightforward and can be deployed relatively easily. Most transactions use a two installment structure such as the one in this example:
- You deliver the goods/services to your customer (US or Canadian)
- You send a copy of the invoice to the factoring company
- The factoring company advances about 80% of your invoice, as a first installment. (varies by industry)
- Once your client pays, the factoring company rebates the second installment, less the fee
Does my company qualify?
The most important requirement to qualify is to have invoices from high quality customers that have a good track record of paying - albeit slowly. This is the most important requirement because the invoices are what backs the transaction. Also, your company should:
- Have invoices that are unencumbered
- Be free of legal and tax problems
- Have an experienced management team
- Be profitable - or on path to profitability
We offer our services all across Canada and can operate in all provinces. We offer services in Ontario, Quebec, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and Saskatchewan.
Need more information about our programs? You can go to our factoring resource center or read the following articles:
- Financing Your Canadian Business
- Financing your Canadian Trucking Company
- Financing a company in Ontario with factoring
- Business financing for companies in Canada
- Finance your company in Alberta with factoring
- Financing for companies in Quebec
Get an instant factoring quote! Questions? Call (866) 730 1922. Services in all provinces.