Invoice Factoring
Express Business Funding is the trusted name in accounts receivable factoring services. Given that the industry is unregulated it is important to choose a factoring company in Canada who is reputable. We work with companies in various industries (freight, construction, etc) to provide specialized invoice factoring services that are best suited to your needs. Our business finance company is located in Toronto, Ontario. We provide alternative funding services to growing companies in Canada.
We provide a superior product in comparison to other factoring companies in Canada – with greater flexibility, industry specialized services, 24 hour funding, and an array of additional benefits. We allow our clients to manage and initiate collection of their own account receivables without the ongoing involvement of a third party. We feel our client already has a solid relationship with their customer and is therefore in the best position to deal with any potential disputes.
Purchase order Financing
There is a growing demand for purchase order financing in Canada. We are an industry leader who provides greater flexibility and unique benefits so you feel like you have an in-house financial team behind you. Our client’s appreciate our open and transparent approach to provide support as needed. In addition to superior products, we offer competitive low purchase order financing rates to companies in Toronto, Vancouver, and throughout Canada. Complete incoming orders using POs as collateral.
Receive up-front cash required to pay for finished products. If you have purchase orders from large, credit-worthy customers but lack the necessary funding to get the product delivered, we offer services as part of our full asset-based lending solutions. PO finance can cover up to 100% of the cost of the products you need to order and pay for prior to the product being delivered to your customer. This solution allows you to purchase pre-sold product without needing to use your own funds.
Small Business Loans
Many applications submitted for small business loans are rejected by banks; even applicants with strong personal credit and solid business experience. This happens when applicants are required to fit into a strict set of criteria laid out by the credit underwriting group. In recent years, many companies in Canada are looking to private business loans to obtain the funding they require. As a private business lenders in Canada, we provide small business loans and short term loans at competitive low rates.
Express Business Funding’s approach is very different. We provide funding based on the credit strength of your customers and their ability to honour purchase orders and pay their invoices. In addition, our small business financing company can provide additional funding based on the value of your company’s assets. We make it easier for new companies to qualify for financing. Private business lenders have added flexibility; we work with SMEs like you to improve cash flow and support your business growth.
Asset Based Lending
In need of additional funding? Asset based lending companies in Canada, are able to provide secondary / alternative business finance services that are far more flexible than your typical small business loan. Our Toronto based company provides competitive low asset based lending rates so you can focus on your business growth and take advantage of opportunities that come along the way. Alternative funding products such as ABL, are very flexible so that you have control of your cash flow.
In recent years, many businesses are often turned down by the bank or are unable to obtain additional funds from the bank, since the bank would not extend additional credit beyond the current limits. The bank was actually limiting the potential for further growth. In these situations, businesses rely on ABL to meet their need for additional funding. Asset-based lenders look beyond the balance sheet and lend against assets such as inventory, capital equipment, real estate and receivables.
5 key differences
Between Express Business Funding and traditional finance lenders.
Maximum loan facility
Because Express Business Funding’s invoice factoring services are based on a client’s Accounts Receivable, the funds available increase as sales increase. Bank facilities will typically have preset limits and can be difficult to increase as required. There is a one-time due diligence fee when an account is opened. Apart from that, our only fee is the discount charged when a bill is factored. Banks may charge monthly rates, facility fees or audit fees which can dramatically increase the total borrowing cost.
No Locked in term
With our accounts receivable financing, there is generally no set term. Clients can use our services for as long as they require them and can repay the outstanding amount at any time without penalty. In most cases, bank facilities have a fixed term with penalties for early termination.
outstanding taxes
In most cases a traditional bank will not provide business financing to Canadian businesses with outstanding tax arrears. Our invoice factoring company will work with your business to finance your accounts receivables even if you are past due on taxes or source deductions.
credit strength/history
With a traditional bank, lack of credit strength or weak financials may result in an application being declined. Our credit decision, on the other hand, is based on the strength of the client’s account receivables and as such, even new companies or those with poor financials may qualify for our business financing solutions.
Timing
Upon receipt of an application and required documentation, Express Business Funding will provide a financing commitment within 24 hours. Following which, business funds can typically be made available to your business within 2 to 4 days. Banks may take several weeks before making a financing decision and even longer before finally providing your business with funds.
Frequent Questions
Accounts Receivable Factoring vs. Purchase Order Financing
Factoring is available to a business which bills creditworthy customers and has to wait to get paid. If you give your customers 30, 60 or even 90 days to pay, a factoring company in Canada will be able to advance you a percentage of the invoice amount today, then wait for your customer to pay the bill. Once paid, you receive the balance; less the fee (usually 2-3% of the invoice amount).
Purchase order financing is quite different, in that you must have a purchase order in your possession to qualify. A financier will then settle the invoice expense with your supplier directly, so that you can fulfill your clients’ order. An interest rate is attached to the amount advanced, which must be settled as soon as the goods are delivered to your customer and you have been paid.
Can I use both products together?
Absolutely! If you can have a financing partner advance funds against solid purchase orders, and have that carry through to delivery of the product, an invoice is created upon delivery. If that same financing partner now factors that invoice and provides additional funding, you now can move forward with the comfort in knowing that sufficient cash-flow will always be available no matter how large the next order.
What if I have a business loan?
If you are currently using a small business loan or line of credit with an institution that holds your accounts receivable as security, there are 2 options. If the facility is small and does not meet your needs, but an increase is not available, EBF can pay off the line so you can move forward with a more flexible factoring arrangement with us. If you would like to keep the facility in place, EBF may be able to work with the institution and have receivables finance services as an add-on to the facility. Call us to discuss this option.
Free Consultation
Meet with one of our financial experts to determine if our Canadian Factoring Company offers the funding solutions you need. Otherwise we are well connected within the financial industry and we can help you connect with the right people. Express Business Funding’s account receivable finance and related products are innovative industry leading business funding products. Our 24 hour approval process and low rates help you focus on growing your business.