Nova Scotia Factoring Companies

Invoice Generation: You provide goods or services to your client and issue an invoice.

Submit Invoice to Factor: You sell the invoice to a factoring company. The factor typically advances you 60 to 95 percent of the invoice value upfront.

Collection: The factoring company collects payment from your client when the invoice is due.

Final Payment: Once your client pays the invoice, the factoring company releases the remaining balance to you, minus a small fee for their services.

Improved Cash Flow: One of the most significant benefits of invoice factoring is the immediate improvement in cash flow. By converting your outstanding invoices into cash, you can cover operational expenses, invest in new opportunities, and avoid cash flow gaps.

No Debt: Unlike traditional loans, invoice factoring doesn’t add debt to your balance sheet. This can be particularly advantageous for businesses looking to maintain a strong financial position and avoid the burden of monthly loan repayments.

Quick Access to Funds: Factoring provides fast access to working capital, often within 24 to 48 hours. This quick turnaround can be crucial for businesses needing to seize growth opportunities or address urgent financial needs.

Outsourced Collections: When you factor your invoices, the factoring company takes over the responsibility of collecting payments from your customers. This can save you time and resources, allowing you to focus on running and growing your business.

Credit Protection: Factoring companies verify the creditworthiness of your clients in advance, which can help mitigate slow payments and unpaid invoices. Moreover,, many factoring companies offer non-recourse factoring, which means they assume the credit risk if your customer fails to pay. This can provide additional security and peace of mind, especially when dealing with new or less reliable clients.

 Flexible Financing: Invoice factoring is highly flexible and can be tailored to your business needs. You can choose which invoices to factor and adjust the amount of financing based on your cash flow requirements.

Growth Facilitation: With improved cash flow, your business can take on larger projects, expand operations, and invest in marketing and development initiatives without waiting for invoice payments.

Covering Payroll: Ensure timely payment of employees, maintaining morale and productivity, and supporting workforce expansion during growth phases.

Managing Inventory: Maintain consistent stock levels, take advantage of bulk purchase discounts, and prepare for seasonal demand by having the necessary funds to buy inventory in advance.

Funding Business Expansion: Access the cash needed to invest in new equipment, open additional locations, or launch new product lines without waiting for invoice payments.

Handling Operational Expenses: Cover day-to-day operational costs such as rent, utilities, and office supplies, ensuring smooth business operations.

Improving Supplier Relationships: Pay suppliers promptly to take advantage of early payment discounts and build stronger, more reliable relationships with key vendors.

Seizing Growth Opportunities: Quickly respond to market opportunities, such as taking on larger projects or contracts, without the financial strain of waiting for client payments.

Bridging Seasonal Gaps: Manage cash flow during off-peak seasons by factoring invoices from peak periods, ensuring steady financial health throughout the year.

Reducing Debt Levels: Use factoring to improve cash flow without taking on additional debt, maintaining a healthier balance sheet and better creditworthiness.

Managing Large Orders: Fulfill large orders or contracts by having the necessary funds to purchase materials and cover production costs.

Supporting Marketing Initiatives: Invest in marketing campaigns and promotional activities to drive business growth and increase brand awareness without waiting for invoice payments.

Enhancing Cash Flow Stability: Maintain a steady cash flow to cover unexpected expenses and financial emergencies, ensuring the business remains resilient and adaptable.

Credit Checks: Ensure the creditworthiness of your clients before extending trade credit with comprehensive customer credit checks, safeguarding your business from potential risks.

nvoice Preparation: Many invoice factoring companies manage invoice preparation on your behalf, allowing you to concentrate on the core aspects of your business without administrative distractions.

Collections Services: Factoring companies handle collections as part of their service, so they take on the responsibility of chasing payments, freeing you from this time-consuming task.

Industry-Specific Perks: Partnering with a factoring company that specializes in your industry can provide tailored perks. For example, freight factoring companies may offer load boards, fuel discount cards, fuel advances, and more, catering specifically to the needs of the transportation sector.

Alternative Funding: Once you’re established with a factoring company, you may gain access to additional funding methods that support your business’s growth and financial stability.

Factoring Lines of Credit

Equipment Leasing and Financing

Commercial Credit Cards

Asset-Based Lending

Receivables Financing