Struggling to choose the right factoring service for your business? With so many factories offering different deals, finding the perfect fit can be confusing. Discovering the top options means faster cash flow and better support for your growth. Read on to find out which factoring service stands out for you!
Top 10 Factoring Companies in Canada
Product Details: Factoring services in Canada provide upfront financing by purchasing unpaid business invoices, offering various options such as recourse, non-recourse, and spot factoring. Additional services include receivables management, credit analysis, collection support, asset-based lending, equipment financing, and payroll funding. The process converts accounts receivable into immediate working capital without creating debt.
Technical Parameters:
– Invoice value minimum: $2,000 – maximum: $70,000,000
– Invoice payment term: 5 – 100 days; Typical factoring fee: around 2% of invoice…
Application Scenarios:
– Small to large businesses experiencing slow client payments and cash flow gaps i…
– Businesses needing immediate funds to cover operational costs such as payroll, f…
Pros:
– Provides immediate cash flow without incurring debt or impacting credit ratings.
– Flexible options tailored to different industries and business sizes, with servi…
Cons:
– Factoring involves fees (typically a percentage of the invoice), which may be hi…
– Businesses may lose some control over customer communications or collections; ce…
What is factoring? Pros and cons | BDC.ca
Product Details: Factoring is a financial transaction where a company sells its accounts receivable to a factoring company in exchange for immediate funds. The factoring company may collect the receivables directly from customers for a fee, and offers various terms that depend on the risk profile of the transaction, such as the customer’s credit quality, invoice amounts, and industry risks.
Technical Parameters:
– Factoring rate: percentage of invoice value taken as fee
– Advance rate: percentage of invoice value advanced up front
Application Scenarios:
– Managing cash flow due to slow-paying clients or irregular cash cycles
– Obtaining immediate funds to invest in inputs for new or large orders
Pros:
– Provides immediate liquidity
– Outsources invoice collection
– Reduces risk of non-payment
– Does not increase company indebtedness ratios
Cons:
– Can be costly, especially if customer payment risk is perceived as high
– Costs may outweigh benefits compared to internal collection or other financing o…
Invoice Factoring Montreal, Quebec, Nova Scotia Area – Riviera Finance
Product Details: Invoice factoring and working capital solutions for businesses in Montreal, Quebec, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland & Labrador. Riviera Finance advances cash to businesses by purchasing their accounts receivable (invoices), providing immediate liquidity to manage operations or fund growth.
Technical Parameters:
– Non-recourse factoring (Riviera Finance assumes the credit risk of the invoices…
– Funding is provided within 24 hours after invoice submission; clients can choose…
Application Scenarios:
– Businesses with slow-paying customers needing immediate cash flow to cover payro…
– Companies experiencing growth, seasonal surges, or unexpected expenses requiring…
Pros:
– Rapid funding (within 24 hours upon invoice verification)
– Clients retain control by selecting which invoices to factor; personalized servi…
Cons:
– Service may incur factoring fees, impacting overall profit margins.
– Not suitable for businesses without outstanding invoices or those requiring trad…
5 Best Factoring Companies in Canada
Product Details: Invoice factoring allows businesses to sell their unpaid invoices to a factoring company (factor) to receive cash quickly, typically advancing 70–90% of the invoice value. The factor then collects payment directly from the customer. There are two main types: recourse factoring (you retain final liability if invoices are unpaid) and non-recourse factoring (the factor assumes liability). Leading providers in Canada include BlueVine, Paragon Financial, altLINE, Breakout Capital, and TCI Business Capital, which offer options for varying business sizes and industries.
Technical Parameters:
– Advance payout rates: typically 70%–90% of invoice value
– Factoring fee: up to 4.5% per 30 days outstanding; specific providers offer rate…
Application Scenarios:
– Businesses with cash flow issues due to unpaid B2B invoices
– Companies needing fast access to working capital, especially those with large cu…
Pros:
– Quick access to cash based on existing invoices
– Flexible solutions available for both established businesses and start-ups; non-…
Cons:
– Factoring fees can accumulate if customers pay late, reducing overall profit
– Not cost-effective for businesses selling individual items or small invoices; re…
Factoring – Peelfinancial
Product Details: Factoring is a financial service provided by Peel Financial that allows businesses to sell their accounts receivable (invoices) for immediate cash. Peel Financial advances a percentage of the invoice value, typically within 24 to 48 hours, and takes responsibility for collections.
Technical Parameters:
– Advance payment within 24 to 48 hours based on invoice value
– Factoring is not a loan and does not add debt to the balance sheet
Application Scenarios:
– Businesses facing cash flow gaps due to slow-paying customers
– Companies needing immediate working capital to manage operational expenses, payr…
Pros:
– Quick and reliable access to funds
– No debt added to balance sheet; credit risk transferred to factoring company
– Improved cash flow and streamlined collections process
– Flexible solutions tailored to various industries and business sizes
– Professional and confidential service
Cons:
– Possible costs/fees associated with factoring (not specified)
– Potential impact on customer relationships if collections are not managed diplom…
Factoring – Financing solution | Affiliated Financial Services
Product Details: Factoring is a financing solution where businesses sell their accounts receivable (invoices) to a factor in exchange for an immediate cash advance, typically up to 90% of the invoice value. The factor then collects payment from customers directly, and upon payment, remits the balance to the business minus factoring fees. Types include recourse, non-recourse, domestic, and international factoring.
Technical Parameters:
– Advance Rate: Up to 90% of receivable value, subject to invoice quality and cust…
– Types: Recourse factoring (client bears risk), Non-recourse factoring (factor be…
Application Scenarios:
– Startups and growing companies needing liquidity without collateral
– Seasonal businesses, industries with long payment cycles (e.g. construction, bus…
Pros:
– Immediate access to cash for reinvestment, operations, or urgent needs
– Reduces credit risk by outsourcing payment collection and credit management
Cons:
– Factoring fees reduce the total receivable amount collected
– Possible responsibility for unpaid invoices in recourse factoring and higher cos…
Invoice Factoring Services in Canada | Soluco
Product Details: Invoice factoring services that allow businesses to convert their unpaid invoices into immediate working capital by selling their accounts receivable to Soluco at a small discount. Up to 95% of invoice value is advanced immediately with the remainder paid upon collection (minus a fee). The process helps companies maintain positive cash flow without incurring new debt.
Technical Parameters:
– Advance rate: Up to 95% of invoice value within 24 hours of approval
– Eligible invoices: Completed deliveries/services up to 90 days old with proper d…
Application Scenarios:
– Businesses needing immediate cash flow to support operations or seize growth opp…
– Companies experiencing seasonal demand fluctuations or slow-paying customers
Pros:
– Immediate access to working capital (funds typically available within 24-48 hour…
– No new debt added to balance sheet; factoring is the sale of receivables
Cons:
– A small factoring fee applies, reducing the total amount received from each invo…
– Only invoices for completed and documented deliveries/services up to 90 days old…
What is Factoring? definition, types and procedure – Business Jargons
Product Details: Factoring is a financial arrangement in which a firm sells its accounts receivable (trade debts) to a financial institution (factor) at a discounted price in exchange for immediate cash advances. The factor assumes responsibility for collecting the receivables and may offer additional services such as debt collection, credit risk protection, and advisory support.
Technical Parameters:
– Immediate advance payment of up to 80-90% of the receivables’ value upon agreeme…
– Balance payment (typically 10-20%) is settled after deduction of finance and ope…
Application Scenarios:
– Businesses seeking immediate cash flow by selling their accounts receivable
– Exporters and domestic firms requiring professional management and collection of…
Pros:
– Provides quick access to working capital without creating new debt
– Factor may offer additional services such as debtor management, credit risk prot…
Cons:
– Factoring involves costs such as commission and interest deducted by the factor
– In recourse factoring, the client retains the credit risk if debts cannot be col…
What is Factoring? Types, Advantages, Disadvantages, Mechanism
Factoring Companies in Canada: 8 Best Options for … – FundThrough
Product Details: Invoice factoring services provided by Canadian companies such as FundThrough, Riviera Finance, 1st Commercial Credit, eCapital, JD Factors, Express Business Funding, Accord Financial, REV Capital, SallyPort Commercial Finance, and Commercial Capital LLC. These companies purchase unpaid invoices from businesses, providing immediate cash flow in exchange for a fee. Product features include spot factoring, non-recourse options, online applications, integrations with accounting software, flexible contracts, and varying funding limits and advance rates.
Technical Parameters:
– Advance rates: 75%-100% depending on provider.
– Rates and fees: Typically 0.69%-3.5% per 30 days; some providers have no hidden…
Application Scenarios:
– Business-to-business (B2B) companies needing quick cash flow by advancing funds…
– Industries such as transportation, oil and gas, staffing, manufacturing, constru…
Pros:
– Faster access to capital compared to traditional loans; cash flow gaps can be br…
– Flexible options such as spot factoring, no required minimum funding volume, non…
Cons:
– Some providers require contracts (e.g., 6-month or minimum funding volume); cert…
– Advance rates are sometimes capped below 100%; potential hidden fees or processi…
Related Video
Comparison Table
| Company | Product Details | Pros | Cons | Website |
|---|---|---|---|---|
| Top 10 Factoring Companies in Canada | Factoring services in Canada provide upfront financing by purchasing unpaid business invoices, offering various options such as recourse, non-recourse… | – Provides immediate cash flow without incurring debt or impacting credit ratings. – Flexible options tailored to different industries and business si… | – Factoring involves fees (typically a percentage of the invoice), which may be hi… – Businesses may lose some control over customer communications… | www.factoringcompanies.ca |
| What is factoring? Pros and cons | BDC.ca | Factoring is a financial transaction where a company sells its accounts receivable to a factoring company in exchange for immediate funds. The factori… | – Provides immediate liquidity – Outsources invoice collection – Reduces risk of non-payment – Does not increase company indebtedness ratios | – Can be costly, especially if customer payment risk is perceived as high – Costs may outweigh benefits compared to internal collection or other finan… |
| Invoice Factoring Montreal, Quebec, Nova Scotia Area – Riviera Finance | Invoice factoring and working capital solutions for businesses in Montreal, Quebec, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland… | – Rapid funding (within 24 hours upon invoice verification) – Clients retain control by selecting which invoices to factor; personalized servi… | – Service may incur factoring fees, impacting overall profit margins. – Not suitable for businesses without outstanding invoices or those requiring tr… | www.rivierafinance.com |
| 5 Best Factoring Companies in Canada | Invoice factoring allows businesses to sell their unpaid invoices to a factoring company (factor) to receive cash quickly, typically advancing 70–90%… | – Quick access to cash based on existing invoices – Flexible solutions available for both established businesses and start-ups; non-… | – Factoring fees can accumulate if customers pay late, reducing overall profit – Not cost-effective for businesses selling individual items or small i… | canadabuzz.ca |
| Factoring – Peelfinancial | Factoring is a financial service provided by Peel Financial that allows businesses to sell their accounts receivable (invoices) for immediate cash. Pe… | – Quick and reliable access to funds – No debt added to balance sheet; credit risk transferred to factoring company – Improved cash flow and streamlin… | – Possible costs/fees associated with factoring (not specified) – Potential impact on customer relationships if collections are not managed diplom… | www.peelfinancial.ca |
| Factoring – Financing solution | Affiliated Financial Services | Factoring is a financing solution where businesses sell their accounts receivable (invoices) to a factor in exchange for an immediate cash advance, ty… | – Immediate access to cash for reinvestment, operations, or urgent needs – Reduces credit risk by outsourcing payment collection and credit management | – Factoring fees reduce the total receivable amount collected – Possible responsibility for unpaid invoices in recourse factoring and higher cos… |
| Invoice Factoring Services in Canada | Soluco | Invoice factoring services that allow businesses to convert their unpaid invoices into immediate working capital by selling their accounts receivable… | – Immediate access to working capital (funds typically available within 24-48 hour… – No new debt added to balance sheet; factoring is the sale of r… | – A small factoring fee applies, reducing the total amount received from each invo… – Only invoices for completed and documented deliveries/services… |
| What is Factoring? definition, types and procedure – Business Jargons | Factoring is a financial arrangement in which a firm sells its accounts receivable (trade debts) to a financial institution (factor) at a discounted p… | – Provides quick access to working capital without creating new debt – Factor may offer additional services such as debtor management, credit risk pro… | – Factoring involves costs such as commission and interest deducted by the factor – In recourse factoring, the client retains the credit risk if debts… | businessjargons.com |
| What is Factoring? Types, Advantages, Disadvantages, Mechanism | www.geektonight.com | |||
| Factoring Companies in Canada: 8 Best Options for … – FundThrough | Invoice factoring services provided by Canadian companies such as FundThrough, Riviera Finance, 1st Commercial Credit, eCapital, JD Factors, Express B… | – Faster access to capital compared to traditional loans; cash flow gaps can be br… – Flexible options such as spot factoring, no required minimum f… | – Some providers require contracts (e.g., 6-month or minimum funding volume); cert… – Advance rates are sometimes capped below 100%; potential hidde… | www.fundthrough.com |
Frequently Asked Questions (FAQs)
What is factoring, and how can it help my factory business?
Factoring is a financial service where you sell your factory’s outstanding invoices to a factoring company in exchange for immediate cash. This helps you improve your cash flow, meet operational costs, and take on new orders without waiting for customers to pay.
How does the factoring process work for factories?
You provide your factory’s invoices to the factoring company. They advance you a significant portion (usually 70-90%) of the invoice value upfront. Once your customer pays the invoice, you receive the remaining amount minus a small service fee.
Is factoring only for factories with financial troubles?
Not at all! Factoring is used by many healthy factories to manage cash flow, support growth, and take on larger orders. It allows you to access funds quickly without taking on more debt or waiting for long customer payment terms.
Will my factory’s customers know we’re using a factoring service?
Yes, usually your customers are notified since payments are made directly to the factoring company. The process is professional, and reputable factoring companies handle communication smoothly without harming your business relationships.
What are the costs involved in using factoring services for my factory?
Factoring fees vary, but they typically range from 1% to 5% of the invoice amount. The exact cost depends on your factory’s sales volume, the creditworthiness of your customers, and the terms you agree with the factoring company.
