New Brunswick: Factoring Services

We help companies that need funds to pay suppliers, employees, and other expenses. Commercial Capital is a leading invoice factoring provider and purchase order funding in New Brunswick. We have over 20 years of experience and have:

1. A diverse set of solutions
2. Helped over 900 small businesses
3. Handled complex transactions
4. Expertise in many industries

Our factoring programs finance your accounts receivable. The programs provide funds to pay for essential business expenses, they have simple qualification criteria, and they can be deployed quickly.

Fill out this form to get an instant quote. Call us toll-free at (877) 300 3258 to speak with a representative.

Product Selection

 Services: Invoice factoring

Invoice factoring enables small companies to finance their accounts receivable. It improves their cash flow and provides funds to cover immediate business expenses. When used correctly, factoring streamlines operations and enables you to take on new clients.

a) How does factoring work?

Deploying factoring is relatively simple. The solution works well with most small companies. Invoices are usually financed in two instalments for most industries. Companies in transportation or staffing often qualify for single-instalment transactions.

Factoring transactions follow these steps:

1. Submit invoice to factoring company
2. Factoring company advances 80% to 95%
3. Your customer pays in 30 to 60 days
4. Factoring company deposits remaining 5% to 20% (less fees)

Most companies use factoring regularly. Factoring improves their cash flow and enables them to operate the business effectively. More importantly, they can offer net-30 terms to clients while minimizing the concerns about slow payments.

Read “How does Invoice Factoring Work?” to learn more.

b) High advances at competitive costs

We offer high initial advances that range from 80% to 95%. The size of the advance varies by industry and transaction risk profile. Companies in transportation and staffing usually qualify for the highest advances due to their transaction structure.

A factoring plan is most effective when you combine it with competitive rates. Our factoring rates range from 1.5% to 3.5% per 30 days. Rates can usually be prorated.

For more information, get an instant quote or call us toll-free at (877) 300 3258.

c) Clear benefits

The program offers a number of advantages to small companies, including:

1. Improved cash flow
2. Improved ability to offer payment terms
3. Adaptable financing line
4. Simple qualification requirements
5. Fast deployment

d) Qualification requirements

Qualifying for our factoring programs is relatively easy. The most important requirements are:

1. Being a registered provincial or federal company
2. Having reliable invoicing
3. Having no serious tax or legal problems
4. Having unencumbered accounts receivable (e.g., PPSA)

Service: Purchase order financing

Purchase order financing helps product distributors that have a large order and need funds to cover supplier expenses. The program pays your supplier directly, enabling you to fulfil the order and book the revenue. This product is intended for product re-sellers. Companies that manufacture products directly should consider supplier financing instead.

Fill out this form for more information. Call us toll-free at (877) 300 3258 to speak with a representative.

Read “What is PO Financing?” to learn more.

a) How does it work?

The purchase order financing company pays your supplier costs directly. Foreign suppliers that require a pre-payment are usually paid by Letter of Credit. This guarantees their payment and also ensures they will deliver the goods your purchase. Some suppliers in Canada or the US may be prepaid by wire transfer. This payment method is at the discretion of the finance company and determined by your supplier’s commercial credit rating.

Transactions can settle in two ways. You can settle through a factoring line or asset-based loan if you have one. Alternatively, you can settle directly once your end customer pays their invoice on their usual terms.

Read “How Does Purchase Order Financing Work?” to learn more.

b) Clear benefits

Purchase order financing lines offer clear benefits to companies that use them. The lines:

1. Enable you to fulfil large orders
2. Grow with your business
3. Are available to small companies
4. Have simple qualification requirements

c) Simple qualification

Purchase order financing has simple qualification requirements and is available to small companies. The most important requirements include:

1. Being a registered provincial or federal company
2. Selling products/services to creditworthy commercial clients
3. Having minimum margins of 20%
4. Having orders greater than $100,000
5. Using third-party manufacturing (or reselling goods)
6. Not manufacturing goods directly

Learning centre

We want to help you make an educated decision about working with the right factoring company in New Brunswick. Our learning centre has a selection of articles about our solutions and how they work. Popular articles include:

1. Can I sell my invoices to improve my cash flow?
2. Navigating purchase order financing: Small business guide
3. Navigating asset-based loans: Small business guide
4. Payroll Financing for Staffing Agencies
5. Owner-Operator Financing in Canada

Service area

We offer services across New Brunswick, including:

1. Saint John
2. Moncton
3. Fredericton