Graduating From Factoring

 
In early, 2017, EBF was introduced to a new client looking for help with their working capital needs. The client, based in Southern Ontario, manufactures and distributes home décor products. They sell to wholesalers and retailers across Canada and the USA. Sales were growing rapidly and they had just landed their largest account ever, securing national distribution with a leading US retailer. In addition, their largest Canadian customer was expanding distribution of their products from Ontario only to all stores nationally. However, with sales terms of Net 60 and they did not have the working capital to take advantage of these great growth opportunities. And due to prior year losses, they were not eligible for traditional bank financing. That’s when they turned to EBF and our Non-Notification Factoring Program. Within a couple of weeks, we were able to provide them with a factoring facility that enabled them to turn their invoices into immediate cash instead of waiting for their customers to pay them. As a result, they were able to take on the new business, grow sales, and turn a profit by fiscal year-end. They have just “graduated” from EBF and have secured a large line of credit with their bank based on their recent sales growth and profitability. The team at EBF is delighted and honoured to have played a part in this success story.  
 
With EBF’s Non-Notification Invoice Factoring Program, you have access to unlimited working capital, regardless of your current financial position. Unlike a bank line with a pre-determined limit, your factoring availability grows as your AR grows. And with Non-Notification Factoring, your customers are never contacted and do not need to know you are factoring.  
 

Factoring is ideal for:

  • Early stage start-ups who do not yet qualify for traditional bank financing;
  • Rapid growth organizations who need more working capital than what their bank can provide;
  • Organizations facing financial challenges that disqualify them from traditional bank financing.
 

Non-Notification (Confidential) Factoring is critical for clients who:

  • Do not want their customers to know they are factoring;
  • Are selling to large corporates or government agencies who will not sign factoring agreements (GE, Magna, Shell, Aecon, Amazon, etc.);
  • Have a very large customer base making it impractical to get assignments from dozens of customers.
 

EBF Funding Criteria:

  • Monthly AR of $100,000 – $10,000,000;
  • All sectors are eligible including construction;
  • Diverse customer base, with no more than 30% concentration with any one customer;
  • Canadian registered company. We can finance both Canadian and US receivables;
 
For more information on how factoring can help you grow your business, please contact us at anne@ebf.ca or 416-887-7963.