Canadian Factoring Companies

Are you looking for the best Canadian factoring companies? There are many to choose from. Each one tailors its services to different industries and has unique offerings. We’re happy to match you with the right one for your needs – just request a complimentary quote to get started.

You may also read our Invoice Factoring Guide for background on the process, comparisons, and cost information, or explore regional details below.

Invoice Factoring Services in Canada

Canadian factoring companies can solve many of your cash flow issues. Invoice factoring provides a cash advance on your invoices rather than waiting for customers to pay you. The funding you receive can help you pay for equipment, pay your staff, or take your business to the next level. With invoice factoring, the balance is cleared when your customer pays their invoice, giving you one less thing to worry about!

Invoice Factoring Services in Canada

How Accounts Receivable Financing Works

Accounts receivable financing, sometimes called receivables financing or A/R financing, allows you to unlock the capital trapped in your unpaid invoices. Invoice factoring is a unique form of funding that leverages your invoices but doesn’t create debt or come with interest charges. The process is simple.

  • Do what you do best. Complete work or deliver goods however you usually do.

  • Invoice your client. Send your client an invoice like you usually do, or if your factoring company offers invoice creation services and you’re using them, let them take care of it.

  • Get up to 95 percent of the invoice’s value right away. Factoring companies typically send cash via ACH, which hits your bank account within a couple of days. However, some also offer accelerated options, such as same-day payments, if you prefer.

  • Move forward. Your factoring company waits for payment and follows up as needed while you spend the cash however you wish.

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

Benefits of Factoring

Businesses of all sizes across Canada leverage factoring because it offers unique benefits.

  • Most businesses are approved. Even if you don’t qualify for loans or have a newer business, you can still qualify for factoring. Approval is fast and usually occurs within a day or two.

  • Payment is instant. No more waiting weeks or months for clients to pay their invoices or loans to process. You get your cash right away with factoring.

  • It’s flexible. You don’t have to factor all your invoices or factor all the time, so you retain greater control.

  • It’s a no-debt business funding solution. Your advance is paid when your customer pays their invoice, so there’s nothing for your business to pay back.

  • Your business can grow stronger. Unencumbered by debt and relieved of tedious invoice chasing, your business is free to move forward and focus on what you do best.

  • Funding scales with you. Your potential payouts grow alongside your business.

How Canadian Businesses Use Factoring

Invoice factoring is versatile. Canadian businesses leverage it for a wide variety of applications, from closing cash flow gaps to investing in growth initiatives.

  • Cover payroll. Fast payouts mean you can rely on your Canadian invoice factoring company to ensure your business makes payroll when conditions make it difficult.

  • Strengthen your team. Recruit and retain talented team members who can help your business succeed.

  • Address equipment needs. From purchasing to maintenance, factoring helps across the entire equipment lifespan.

  • Purchase materials or inventory. Stock up and be prepared for customer needs.

  • Comply with regulations. From licensing needs to permits and other legal requirements, factoring can provide you with the working capital required to stay compliant.

  • Grow. Accept more or larger orders, reach new markets, and invest in other growth initiatives to help your business reach the next level.

  • Address emergencies. Take care of unplanned expenses quickly and reduce stress, knowing you can tap into cash as needed.

  • Stabilize cash flow. Shifts in customer demand, slow payments, and economic changes can make predicting cash flow and budget difficult. Factoring brings back predictability. 

Businesses and Industries That Leverage Invoice Factoring Services

Key contributors to the Canadian economy, such as the oil and gas industry, IT, and healthcare industry, all struggle with slow payment cycles that can be addressed through factoring. However, most businesses with B2B invoices can leverage factoring, including: 

Additional Services Offered with Accounts Receivable Financing in Canada

Experienced Canadian factoring companies love to help their clients grow and thrive, so they often offer a variety of services that complement factoring. Depending on the factoring company you choose, you may also have access to:

  • Customer credit checks. Know the creditworthiness of your clients before you extend credit through invoicing to make informed decisions.

  • Invoice prep. Save hours each week by letting your factoring company generate invoices for you.

  • Invoice collection services. Factoring companies collect invoice balances for you as part of the process so you can focus more on running and growing your business.

  • Industry-specific perks. Each industry and business can benefit from different services, which is why it’s so important to work with a factoring company that understands your trade and tailors its services to your needs. For instance, Companies specializing in freight factoring often provide their clients with access to a load board and discounts on essentials such as fuel and tires. Some provide fuel advances, too.

  • Alternative funding options. Factoring isn’t always the best solution, so many factoring companies also provide additional funding solutions to ensure the needs of their customers are met.

Alternatives to Small Business Loans in Canada

Canadian small business loans are often the first funding solution business owners seek out. However, the approval process can be complicated due to rigid requirements, and many businesses don’t qualify. Some avoid loans due to debt aversion, slow funding, and other reasons, too. Factoring companies understand there’s no one-size-fits-all solution when it comes to business funding, so they routinely provide other financial solutions such as:

Operating a Business in Canada

Canada is an excellent place to run a business, thanks in part to our highly educated workforce, business-friendly legislation, and low corporate tax rates. It’s one of the top ten countries to run a business globally, per the Global Start-up Ecosystem Index, and is ideal for companies seeking international expansion due to economic and trade conditions. 

Canada’s Business Economy

Real estate, manufacturing, and mining are key industries, contributing to a GDP of more than two trillion dollars, Investopedia reports. This makes it the ninth-largest economy in the world. Major trade partners include the U.S., China, and the U.K. More than half of the country’s employer businesses are in just two provinces: Ontario and Quebec, government resources note.

Starting and Growing a Canadian Business

Just over 101,000 new businesses are created in Canada each year. The official government website offers a wealth of information about starting a business in Canada, including how to plan and register your business. 

Generally speaking, the country is very supportive of startups and small businesses. However, it can be challenging to find support as a business grows, as cash flow concerns mount. More than 90,000 businesses close each year. 

If your business could benefit from accelerating its cash flow or obtaining debt-free funding, hit the button below to learn more or get started with invoice factoring.

Get an instant factoring estimate

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

CLAIM YOUR FREE FACTORING QUOTE TODAY!

Request a Quote

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

Get an instant factoring estimate

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

CLAIM YOUR FREE FACTORING QUOTE TODAY!

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