Providing Accounts Receivable Financing (Also Known as Factoring) For Canadian Businesses.
Canadian companies realize that financing the growth of
a business can be a challenge. Newly developed or established businesses selling on credit terms will eventually need more working capital due to
an increase in sales. If your credit sales to commercial accounts have created a cash flow shortage in your business, then your company will benefit the most by utilizing our accounts receivable financing service. Business owners realize that there is no need to borrow money from a bank in order to offer credit terms to customers.
1st Commercial Credit is a factoring
company that offers receivable financial services for businesses in Canada.
Financial services are available for staffing companies, trucking
and transportation companies, manufacturers, distributors and service providers. No
construction or government medical receivables are financed in
Canada at this
time.
What is Accounts Receivable Financing?
Receivable financing is a method used by businesses to convert sales on credit terms for immediate cash flow. Financing accounts receivable has become the preferred financial tool in obtaining flexible working capital for
Canadian businesses of all sizes. The receivable credit line is determined by the financial strength of the customer (Buyer), not the client (The seller of the receivables).
Canadian Receivable
Financing is available in days.
At 1st Commercial Credit, Canadian
clients can obtain receivable financing with minimal paperwork. Our decisions are not based on financials, tax returns or even equity to debt ratios. We make decisions primarily on the invoicing process and the credit strength of the account debtor (buyer). We specialize in evaluating and financing accounts receivable and can make a prompt decision within a day.
This financial solution involves very little underwriting. The approval process is simple and we can expedite initial funding in 3 to 5 working days. Our clients
in Canada enjoy the benefits of our prompt service and begin to use their funds within days of completing an application.
Canadian Business Qualifications for Receivable Financing
Our financing programs can accommodate companies with seasonal or uneven sales patterns or start-up operations with no financial base to rely upon. Any business can qualify for receivable financing if it generates sales on open credit terms to customers with financial credit strength. Most of our clients are trying to find a solution to finance their growth or whose past earnings will not justify a traditional loan or credit line increase.
What Industries Qualify for Receivable Factoring in Canada?
Every industry is evaluated differently because no industry invoices the same method. Not all factoring companies
in Canada accept every industry. As a rule of thumb, your business must sell to a good credit worthy account debtor (customer), a receivable or invoice that can be verified or has an acceptance (signed off) by the account debtor. Receivable
factoring/financing is available to all industries that provide services, or deliver products to commercial accounts. The sale must be "final sale" with no contingencies or disputes. The service or product must be completely delivered in order for an invoice (receivable) to be eligible for funding.
Account Receivable Financing Frequent Questions for Canadian
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