In January, 2018, EBF was introduced to a client from the Special Loans Department at a chartered bank.  While the operating company was breaking even, the owner had taken cash out of the business to invest in other opportunities, in violation of its loan covenants.  As a result, the bank was uncomfortable continuing to finance the operating company.  They turned to EBF to see if we could support the business while it restructured.
 
Within a few weeks, EBF was able to provide a $1MM non-notification factoring facility which paid out the bank’s operating line and provided the company with an additional $400K in working capital in order to purchase supplies and complete a backlog of orders.  Non-notification factoring was critical for this client as they did not want to raise any red flags with their customers that they may be in financial trouble.  As sales grew, their factoring facility grew to $1.5MM.
 
With support from EBF, the company was able to keep operating, avoid layoffs, reduce costs, take on more business, and grow.  The company has emerged from its challenging times even stronger.  Now sixteen months later, the client has completed its reorganization and has secured new financing at a traditional bank.  Although we are sad to see them go, EBF is proud to have played a part in helping support a Canadian manufacturer manage through challenging times.
 
With EBF’s Non-Notification Invoice Factoring Program, companies have access to unlimited working capital, regardless of current financial position.  Unlike a bank line with a pre-determined limit, your factoring grows as your AR grows.  And with Non-Notification Factoring, your customers 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, including companies in Special Loans.

 
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.