Factoring

Factoring is the process by which a company sells its receivables. Factors operate differently in Canada and in the USA. In Canada factoring companies provide a credit department function, handling your receivables in an efficient manner to insure quick payments. Seldom do they purchase the receivables outright. US factoring companies buy your receivables at a discount and accept responsibility for collection.

Why the difference? Canadian banks over-secure loans and often attach accounts receivable. This makes it virtually impossible for a factor to control the desired receivable(s). If you are interested in factoring, you must closely examine your existing loans to see what is attached as security.

Companies that enjoy good gross margins are best suited for factoring.

Factoring is ideal for a company that is experiencing strong growth and does not wish to sign away ownership to venture financiers or merchant bankers. It is a very effective way to increase cash flow.

Please complete the following. All fields required.

Name of company:

Names of owners/partners/principals:

Legal address:

Years in business:

Legal structure:

Incorporated Partnership Sole Owner

Nature of your business:

Manufacturing Transport Retail Service Other

Nature of and dating of your receivables:

Name and position of person submitting this form:

Telephone number with area code:

Email:

Additional information:

 

By sending this form you are agreeing to a credit check that can extend to the principals of the company. We may require trade references and other details that will assist in determining the granting of funding. All information supplied here and by any other means must be factual and as accurate as possible. Whoever submits this form must be in a position of authority to commit the company to a financial contract.