Invoice Financing Services in Canada:

Freight Factoring Company

Case Study

Freight & Trucking Factoring Companies

Factoring Companies Canada

The ability to properly maintain sufficient cash-flow is a make or break issue for a trucking company — whether you’re an independent owner/operator or the owner of a 50 truck fleet. Buying “float time” with the creative use of credit cards is not an option. Going to your banker to request a business line of credit is another option but unlikely to find success. For small business trucking fleets and owner-operator businesses freight bill factoring is one of your best solutions.
For those unfamiliar with the programs available, freight invoice factoring is nothing more than selling or assigning your unpaid freight bills to a third party company, called a invoice factoring company, for less than you would receive if you were to bill your customer and wait for payment. This enables you to get paid quickly upon completion of a run, giving you faster access to the cash you need for funding your day-to-day operations.

How Does It Work?

Here’s how freight factoring in Canada works, step-by-step:

  1. Once you book your load, you fax or email details about your customer, the load, and your rate confirmation to us.
  2. We will let you know in advance if your customer is approved for our services.
  3. You complete the load and then fax or email your Bills of Lading and other load-related documents to us, along with your bill.
  4. Usually within 24-48 hours, Express Business Funding will initiate a direct deposit to your bank account (or to your fuel card account) for the agreed upon advance amount (usually 80%-90% of your invoice face value).
  5. Once your customer has pays the invoice in full, you would receive the balance (less the factoring fee).


We can help!

Invoice factoring for freight and trucking companies may not be for everyone, but it will provide you with the cash you need to keep your trucks operating and provide some stability while you wait for your customers to pay their freight bill. Express Business Funding provides services in Canada and has a strong presence in Toronto, Ontario – Calgary, Alberta and Vancouver, BC.
First, just like any other business financing solutions this service is not free but is popular amongst freight companies for it’s flexibility and competitive low rates. It’s up to you as a business owner to make a determination as to whether or not it’s worth the cost — which can vary from as little as 1.5% to as much as about 5% of the bills face value.

Freight Trucking

Not All Freight Factoring Services Are Created Equally

Here are some key questions to ask when considering which Canadian invoice factoring company to use: 1) Do you provide recourse or non-recourse based freight factoring services?
The name may seem unfamiliar, but the ramifications to your profitability could be substantial: Recourse-based freight factoring means that if your customer fails to pay the factor, that you will allow them to come back to you for reimbursement; whereas, non-recourse-based services means that even if the bill doesn’t get paid, you have your money.
2) Do you require me to let you bill my customer for all future loads I pull for them or can this be done on a load-by-load basis? While you may have a temporary cash shortfall that you’re trying to cover by utilizing this service, many factors will require that they handle all future bill collections for monies owed to you by that customer. Depending upon the customer, you may not want to go this route, but keep in mind that some freight factoring companies in Canada are very firm about this requirement.
Some factors give you the option of deciding on a load-by-load basis whether to handle the billing and collections yourself or whether to let them handle it on your behalf. In addition, A/R based funding services will let you make the decision yourself will also let you decide whether you want immediate payment or payment when the invoice is actually paid. This can be convenient for you, because it will almost permit you to utilize the service on an “as-needed” basis.  

Additional Services

Most transportation receivable finance companies will do a credit check on your customer for you. Other receivable financing services will give you access to a list of customers that are “pre-approved” — companies that meet their credit requirements. This can also come in handy, especially if you want to know a prospective customer’s credit prior to booking the load.
With Express Business Funding you can multiple funding products under one roof, giving flexibility to make the best financial decision. Enjoy our competitive low rates and the freedom of our real-time online accounts receivable finance platform. Finance receivables you choose or take out a private business loan. We offer a number of added features and benefits to help you grow your company. Express Business Funding is also proud to be the first Canadian company to offer supply chain finance services.