Manitoba Factoring Companies

Whether you’re in Winnipeg, Brandon, or one of the smaller cities, finding a good factor can be challenging because there are so many to choose from. We’re happy to match you with the best Manitoba factoring companies for your needs to streamline your search. Simply request a free rate quote to learn more or get started.

Our Invoice Factoring Guide also contains background on the process and tips for self-guided learning, or you can explore this page for general information on factoring companies in Manitoba.

Invoice Factoring Services in Manitoba

Invoice factoring is a streamlined financial solution for companies that require a fast injection of working capital. Instead of receiving a loan and thus raising debt, businesses sell their receivable invoices to a factoring company, which advances a percentage of the total face value of the relevant invoices. The balance is then paid to the company after the outstanding amount has been collected from the client, and after the factoring company takes a factoring fee for itself.

To qualify for factoring, Manitoba businesses do not need flawless credit records – instead, their clients’ credit records count. Factoring clients must generally have the following:

Invoice Factoring Services in Manitoba

  • Good billing practices. Your invoices must be current and follow best practices.

  • No existing liens on their receivables. Your receivables must qualify for factoring and not be assigned to any other entity.

  • Good, creditworthy clients. Your clients are responsible for paying their invoices, so their credit is more of a concern than yours.

How Accounts Receivable Financing Works

Financing and factoring are two primary ways to unlock working capital from your invoices. With financing, your business receives a loan based on the value of your invoices, and you pay it back. With factoring, your factoring company collects the balance, so there’s nothing for your business to pay back. The process is simple.

  • Serve your customers. Deliver goods or services in your usual fashion.

  • Invoice your client. Send invoices like you usually do and then send a copy to your factoring company, or, if your factoring company offers invoice generation services, let them take care of this step.

  • Get paid immediately. Your factoring company will advance up to 95 percent of the invoice’s value right away. Cash is usually sent via ACH, so it arrives directly in your bank account within about two business days. Some factors offer accelerated payments, including same-day options, too.

  • Move forward. Spend your advance however you like and focus on growing your business. Your factoring company waits for payment and follows up on the invoice as needed, so you don’t have to.

  • Get final payment. You receive the remaining balance when your client pays. The factoring company retains a small amount as a factoring fee.

Benefits of Factoring

Although factoring is sometimes viewed as a funding solution for companies that don’t qualify for loans and grants, Manitoba businesses chose it over other lending options for many reasons.

  • Approval is easy. Factors are more concerned about the creditworthiness of your clients than your credit history, so you can qualify even if you have been denied a loan.

  • Funding is fast. Rather than waiting weeks or months for a loan to pay out or clients to take care of your invoice, you can receive money the very same day you earn it.

  • No debt. Balances are cleared when your client pays their invoice, so your business has no debt to pay back.

  • Your business may grow stronger. Factoring supports businesses by helping you avoid debt, providing capital as needed, allowing you to seize opportunities, and more.

  • Advances scale with your business. You’ll automatically qualify for greater advances as your invoice amounts and volume increases.

  • It’s flexible. You aren’t required to factor all your invoices. Tap into cash only when needed to keep more money in your pocket.

How Manitoba Businesses Use Factoring

You’re in control of when and how you spend your factoring cash. Because factors pay out quickly and there’s no debt, businesses in Manitoba often use factoring for:

  • Payroll. Ensure your team is paid on time like clockwork, even if your clients are slow to pay.

  • Strengthen your team. Recruit, hire, train, and retain top talent.

  • Manage equipment needs. Whether you need to purchase, maintain, or repair equipment, invoice factoring can provide the cash you need.

  • Purchase materials and inventory. Factoring makes it easy for you to accept your next order. Purchase supplies and take care of vendor payments quickly to maintain strong relationships.

  • Comply with regulations. Take care of licenses, taxes, permits, and more promptly to avoid penalties.

  • Grow. Invest in initiatives to help your business grow or bid on larger projects confidently.

  • Tackle emergencies. Whether your equipment breaks, Mother Nature throws a wrench in your plans, or another unforeseeable event occurs, factoring can provide cash quickly to allow you to address the problem.

  • Stabilize cash flow. Unpredictable cash flow can make it difficult to budget and create spending stress. Factoring takes the guesswork out of when you’ll get paid.

Businesses and Industries That Leverage Invoice Factoring Services

Invoice factoring enables businesses to manage temporary gaps in cash flow that all companies have to deal with at one time or another. Many fledgling businesses in Manitoba’s primary industries have turned to factoring for a financial boost during crucial times in their development.

Although factoring works for just about any company that generates B2B invoices, the following businesses and industries tend to leverage it more:

Additional Services Offered with Accounts Receivable Financing in Manitoba

Experienced factoring companies become invested in the businesses they serve and want to help you grow. Because of this, your factor may offer additional services such as those covered below.

  • Customer credit checks. Factoring companies perform customer credit checks to help ensure invoices are paid fully and on time.

  • Invoice preparation services. Some factoring companies offer invoice preparation services to streamline your billing and collections processes even more.

  • Collection services. Factors collect invoice balances for you as part of the normal factoring process to save you time and allow you to focus more on managing the daily aspects of your business.

  • Industry-specific benefits. When you work with a factoring company that caters to your industry, they’re likely to offer additional services or perks to help your business thrive. For example, freight factoring companies sometimes offer tire and fuel discount programs, access to load boards, and fuel advances.

  • Comply with regulations. Take care of licenses, taxes, permits, and more promptly to avoid penalties.

  • Grow. Invest in initiatives to help your business grow or bid on larger projects confidently.

  • Tackle emergencies. Whether your equipment breaks, Mother Nature throws a wrench in your plans, or another unforeseeable event occurs, factoring can provide cash quickly to allow you to address the problem.

  • Alternative funding opportunities. Even though factoring is versatile, it’s not right for every situation, and your needs may change as your business grows. Factoring companies often offer other forms of financing to ensure your needs are met.

Other Alternatives to Small Business Loans in Manitoba

Because small business loans can be challenging to obtain, take time to disburse, and create debt, they’re not always the best solution either. In addition to factoring, your factor may offer other alternatives to loans, such as:

Operating a Business in Manitoba

Manitoba is not often regarded as a business hub, but it offers a lot in terms of affordability and work-life balance. Moreover, the province has worked especially hard in recent years to attract more entrepreneurs, to the point that Winnipeg was recently named the most improved city for businesses in the country by Risk Concern. There are now more than 43,000 businesses with employees in Manitoba, the province reports. Of these, nearly 98 percent qualify as small businesses.

Manitoba’s Business Economy

Manitoba’s economy relies heavily on industries involved in primary production, such as agriculture, mining, oil, and forestry. The retail, construction, and healthcare industries each comprise nearly 11 percent of the province’s 43,000 employer firms. 

Starting and Growing a Manitoba Business

Manitoba’s commitment to improving business conditions and ongoing stability over the past several years have made it a much more desirable place to start a business. As a result, Winnipeg recently earned the title of the best city to start a business in Canada from Risk Concern. 

The official Manitoba website offers insights on how to set up and operate a business in the province. However, it can still be difficult for early-stage companies to obtain funding, and cash flow gaps persist for small businesses, especially those experiencing rapid growth. If your company is in the B2B niche, invoices clients, and can sometimes benefit from accelerating cash flow, hit the button below to request a complimentary invoice factoring rate quote.

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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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1-866-477-1778

Get an instant factoring estimate

Two columns
Vertical
Horizontal
Overview
Name Total
"{{getWooProductName}}" has been added to your cart
Have a promocode?
Promocode Hide Show

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