Ontario Factoring Companies
Looking for a factoring company in Ontario? As one of Canada’s busiest business hubs, Ontario has many small and medium-sized businesses. Ontario’s largest industries include auto production, IT, communications, pharmaceuticals, biotech, and medical equipment. These Ontario industries often overlap with essential businesses in manufacturing, technology, transportation, and freight. Whether you work in these busy industries or in related business sectors, you are going to need finance to grow your business.
Invoice factoring companies in Ontario provide financial solutions to companies requiring working capital. It is a quick and simple way for businesses to gain the cash they need to grow their business and keep a healthy cash flow.
Invoice Factoring Services in Ontario
There are many factoring services available in Ontario. One of the most popular factoring solutions is invoice factoring. Invoice factoring provides Ontario companies the opportunity to sell their unpaid invoices to a factoring company. The factoring company is paid back by directly collecting payment from the customer. You often have to pay a small fee for factoring services, but unlike a bank loan, you don’t pay interest fees.
There are a few types of invoice factoring, recourse and non-recourse factoring. With recourse, you are responsible for buying back debts that are not recoverable, but with non-recourse factoring, you will not have to worry about irrecoverable debts. Other forms of factoring include payroll factoring, freight factoring, a factoring line of credit, and equipment leasing financing.
Accounts Receivable Financing in Ontario
Don’t want to sell your invoices? Ontario factoring companies often provide financing solutions other than factoring. With accounts receivable financing, your invoices will be used as collateral for the financing you receive from a company. If you have assets you can use as collateral, you can also use asset-based lending solutions. Some factoring companies in the freight industry also provide funding, such as fuel advances and fuel cards.
Small Business Loans in Ontario
It can be difficult to obtain funding from Ontario financial institutions. You often have to have a good credit rating and a profitable business. If you are a start-up or having a rough year, it’s nearly impossible to take out a small loan. Factoring solutions such as invoice factoring makes it easier for businesses that are struggling financially to obtain the funding they need
Ontario’s Business Economy
Ontario remains the largest business hub in Canada. About 38% of the Canadian GDP comes from Ontario, with the manufacturing, technology, and transportation industries providing a large amount of income. With invoice factoring, you can be part of Ontario’s thriving business economy.
Canadian factoring companies:
Browse our Factoring Guide to find out more information about invoice factoring and what you need to know in order to choose the best factoring solutions in Ontario for your business.