Commercial Capital is a leading provider of factoring and purchase order financing in Nova Scotia. We have over 20 years of experience financing small companies that need funds to cover business expenses. Our company has:
- A diverse set of solutions
- Helped more than 900 small companies
- Financed transactions in most industries
- Experience with complex transactions
Factoring programs provide working capital by financing your accounts receivable. The funds enable you to operate the business and provide a platform for future growth. Invoice factoring has simple qualification requirements, is available to small companies, and can be deployed quickly.
Fill out this form for an immediate quote. Call us toll-free at (877) 300 3258 to speak with an expert.
Product selection:
Invoice Factoring
Provides an advance on your slow-paying invoices from creditworthy customers. Works in most industries including business services, manufacturing, consulting, and oilfield services.
Freight Factoring
Specialized program for transportation carriers and freight brokers. The program provides an advance on slow-paying freight bills.
Supplier Financing
Specialized program that helps manufacturing companies and distributors that need to buy materials to build inventory or fulfill orders.
Purchase Order Financing
Specialized program for distributors, wholesalers and resellers. Helps your company fulfill large purchase orders by helping with supplier expenses.
Service: Factoring
Factoring improves your cash flow by financing your accounts receivables. It provides funds to cover your company’s immediate expenses, such as payroll and suppliers. This solution is available to small companies and has simple qualification requirements.
a) How does invoice factoring work?
Factoring lines integrate well with most small companies. Invoices are usually financed in two instalments. However, single-instalment transactions are available to companies in the staffing and transportation industries.
Transactions follow these steps:
- You submit the invoice for financing
- Factor advances 80% to 95% of the invoice
- Your customer pays, usually after 30 to 60 days
- Factor advances remaining 5% to 20%, less fees
Step #4 settles the transaction. You can finance as many invoices as you need as long as they meet our qualification criteria.
Read “How Does Invoice Factoring Work?” to learn more.
b) High advances and competitive rates
An effective factoring plan combines a high advance with a competitive rate. This combination improves your cash flow while keeping your costs under control. Advances range from 80% to 85% for most industries. Certain industries, such as transportation or staffing, can qualify for advances over 90%.
We can offer low rates to qualifying clients. Rates range from 1.5% to 3.5% per 30 days, based on the credit quality of your invoices and your financed volume. Fill out this form for an instant quote or call us toll-free at (877) 300 3258 if you have questions.
c) Simple qualification
Factoring plans are designed for small businesses. They have simple qualification criteria and are easier to obtain than comparable solutions. Requirements include:
- Operating as a federal or provincial company
- Having creditworthy commercial clients
- Having unencumbered invoices (e.g., PPSA)
- Having no serious legal or tax problems
Service: Purchase order financing
Purchase order (PO) financing enables distributors to handle large orders. It covers the supplier payments associated with the order, allowing your company to fulfil it and book the revenue. PO financing works only for product re-sellers. Manufacturing companies should consider supplier financing instead.
Fill out this form for an immediate quote. Call us toll-free at (877) 300 3258 to speak with an expert.
a) How does it work?
The first step is to determine if the transaction qualifies for financing. If the transaction qualifies, the PO financing company handles your supplier payment directly. Foreign suppliers that need a pre-payment are paid with a Letter of Credit (LC). This form of payment guarantees their payment and ensures order fulfilment.
Suppliers in Canada or the US that need a pre-payment can be paid by wire transfer if they qualify. Otherwise, they are paid with a letter of credit.
Transactions can settle in two ways. They can settle through a factoring line if you have one or if required. Alternatively, the transaction settles when your customer pays their invoice.
Read “How Does Purchase Order Financing Work?” to learn more.
b) Benefits
Purchase order funding offers several benefits to small companies. Its main advantages include:
- Improved ability to fulfil larger orders
- Adaptable line
- Simple qualification requirements
- Quick setup process.
c) Simple qualification
Purchase order financing plans have simple qualification requirements. The most important requirements include:
- Being a registered provincial or federal company
- Selling products/services to creditworthy commercial clients
- Having minimum margins of 20%
- Having orders greater than $100,000
- Using third-party manufacturing (or reselling goods)
- Not manufacturing goods directly
Essential reading
Are you evaluating factoring companies in Nova Scotia? We want to help you make an educated decision. Our learning centre has information regarding factoring, purchase order financing, and other solutions. Popular articles include the following:
- Owner-Operator Financing in Canada
- Can I sell my invoices to improve my cash flow?
- Invoice factoring qualification requirements
- Fix your trucking carrier’s cash flow issues
- Navigating purchase order financing: Small business guide
- Navigating asset-based loans: Small business guide
Locations
Our service area in Nova Scotia includes:
- Halifax
- Cape Breton – Sydney
- Truro