There’s no shortage of options when you’re looking for the top factoring companies in Canada. However, sorting through all the choices and trying to see which ones make the cut can be time-consuming, and it’s easy to miss important features or benefits. We’ve removed the guesswork by providing a shortlist of top factoring companies on this page. Each has an excellent reputation, offers competitive rates, and shines in unique ways.
Understanding Factoring Companies and Their Value
Before we break down the top factoring companies in Canada, let’s quickly review some background information on invoice factoring.
Factoring is an alternative to traditional funding methods like business loans. Instead of receiving a lump sum payment from a lender that you must pay back with interest and fees, factoring accelerates payment on your B2B receivables.
You choose which invoices to factor and when to factor them. When you submit an invoice to the factoring company, you receive most of the invoice’s value right away. Then, when your client pays, the factoring company sends you the remaining balance minus a small factoring fee.
Most businesses qualify, and there are many benefits of factoring, such as its ability to provide you with debt-free funding and quick payouts. Plus, many factoring companies offer additional services to help your business thrive even more.
How to Choose a Factoring Company
It’s helpful to keep a few things in mind when you choose a factoring company, such as your business’s needs and what services your company needs now or may want to leverage in the future. That way, deciding which factors belong on your shortlist is easier as you explore your options. Our list of leading factoring companies in Canada can make it easier to identify your top choices, but you can also review the complete factoring company directory if you want more options for your industry or are looking for additional services.
The Top 10 Factoring Companies in Canada
Companies that made our list are generally well-regarded within the industry, offer competitive rates, and have a streamlined process. However, because each business may need different services, our list of the top factoring companies in Canada is not in any particular order.
Feel free to click the links in any of the sections below for in-depth coverage of any factoring companies covered or request a complimentary rate quote if you’d like Factoring Companies Canada to match you with a provider that can meet your needs.
1. 1st Commercial Credit
Often regarded as one of the best factoring companies due to their A+ BBB rating and 20 years in business, 1st Commercial Credit serves telecom, construction, distribution, manufacturing, medical, government contractors, import/export, and more. Their leading service is invoice factoring, but they also offer asset-based lending, equipment financing, and other funding solutions to meet the needs of their diverse client base.
2. Accord Financial Corp.
For more than 40 years, Accord Financial has been supporting businesses in transition, including those dealing with slow receivables turnover, bad debt loss, restructuring and turnaround, and buyouts and acquisitions. The company can provide up to two million dollars in funding, offering some of the highest A/R financing limits in the industry.
3. Commercial Capital LLC
Specializing in the transportation, construction, and medical industries, Commercial Capital LLC offers a variety of solutions, including factoring and sales ledger financing for those that outgrow factoring.
4. eCapital
If you work in a unique niche or are global, eCapital is an excellent factoring company to shortlist. With offices across Canada, the United States, and the United Kingdom and over $36 billion funded across more than 80 industries, it’s a solid contender. In addition to offering traditional invoice factoring and freight factoring services, eCapital provides businesses with lines of credit, asset-based lending, and equipment refinancing.
5. FundThrough
Often regarded as one of the best Canadian factoring companies, FundThrough takes a high-tech approach to factoring. Their system links with your QuickBooks or OpenInvoice account, and most of the process is automated. The company provides funding as soon as the next business day and says there’s no limit to the amount you can factor.
6. Riviera Finance
With a focus on transportation, telecom, energy, and staffing and over 50 years in business, Riviera Finance is one of the most trusted names in factoring. The company offers a full suite of factoring-related services, including invoice processing and receivables management, as well as various related funding options.
7. J D Factors
Not all factoring companies provide non-recourse factoring, but J D Factors prides itself on it and offers expedited funding solutions, including same-day payments. The company serves most industries but specializes in trucking, oilfield services, wholesale/distribution, and staffing.
8. BVD Group
Launched initially as a single gas station in Ontario, BVD Group has since grown into a large company centred on the transportation industry with Capital, Petroleum, Equipment Finance, Real Estate, and Truck Sales divisions. Those looking for top-rated factoring services in Canada can turn to the BVD Capital division, which also offers asset-based lending and purchase order financing.
9. Camsa
Founded in 2001, Camsa is a transactional lender that provides accounts receivable, purchase order, supply chain, and supplier financing. Programs vary, with invoice financing available for companies achieving $2,000,000 in annual sales and purchase order or contract financing available for those with contracts between $250,000 and $1,000,000.
10. iTruck Financial, Inc.
Regarded as one of the top freight factoring companies in Canada, iTruck Financial offers a variety of solutions for the transportation industry. As part of the iTruck family, which includes Fuel, Insurance, and Leasing divisions, iTruck Financial helps everyone from owner-operators to large fleets with factoring and other funding solutions.
Connect with the Top Factoring Companies in Canada
Want to jumpstart the process, or still trying to decide which of the top factoring companies is best for your needs? We’re happy to match you with a factoring provider that offers competitive rates and can help your business grow. To learn more or get started, request a free factoring quote.
