Nova Scotia: Factoring Services

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:

1. A diverse set of solutions
2. Helped more than 900 small companies
3. Financed transactions in most industries
4. 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 (877) 300 3258 to speak with an expert.

Product selection:

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.

Read “What is invoice factoring?” to learn more.

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:

1. You submit the invoice for financing
2. Factor advances 80% to 95% of the invoice
3. Your customer pays, usually after 30 to 60 days
4. 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 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:

1. Operate as a federal or provincial company
2. Have creditworthy commercial clients
3. Have unencumbered invoices (e.g., PPSA)
4. No serious legal or tax problems

Service: Purchase Order Financing

Purchase order 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 only works for product re-sellers. Manufacturing companies should consider supplier financing instead.

Fill out this form for an immediate quote. Call (877) 300 3258 to speak with an expert.

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

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 USA 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:

1. Improved ability to fulfil larger orders
2. Adaptable line
3. Simple qualification requirements
4. Quick setup process.

c) Simple qualification

Purchase order financing plans have simple qualification requirements. The most important requirements include:

1. Registered provincial or federal company
2. Sell products/services to creditworthy commercial clients
3. Have minimum margins of 20%
4. Have orders greater than $100,000
5. Use third-party manufacturing (or resell goods)
6. Don’t manufacture goods directly

Essential Reading

Are you evaluating factoring companies in Nova Scotia? We want to help you make an educated decision. Our learning center has information regarding factoring, purchase order financing, and other solutions. Popular articles include the following:

1. How to choose a factoring company
2. How to finance a Canadian business
3. How to finance a trucking company
4. Owner-operator financing in Canada

Locations

Our service area in Nova Scotia includes:

1. Halifax
2. Cape Breton – Sydney
3. Truro