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Ontario: Factoring Services

Commercial Capital LLC helps companies that need funds to pay employees, suppliers, and other business expenses. We are a leading provider of factoring and purchase order financing in Ontario. We have:

  • Over 20 years of experience
  • Expertise in many industries
  • Simple qualification requirements
  • Competitive terms
  • Quick deployment

Our factoring programs help companies that need to improve their cash flow. These programs enable you to finance your accounts receivable, they have simple qualification requirements, and they can be deployed quickly.

Fill out this form or call us toll-free at (877) 300 3258 for a quote.

Main Product Selection

Invoice Factoring

Invoice Factoring

Helps companies whose clients pay in 30 to 90 days. It provides immediate cash flow to cover company expenses. Program has competitive terms and can be deployed quickly.

Freight Factoring

Freight Factoring

Helps trucking companies whose shippers and freight brokers pay in 30 to 90 days. Provides funds to pay for drivers, fuel, and other expenses. Available to carriers of all sizes.

Construction Factoring

Construction Factoring

Helps subcontractors whose commercial clients, GCs, and builders pay in 30 to 90 days. Provides funds to cover company expenses. Requires a minimum A/R volume of $100,000.

Purchase Order Financing

Purchase Order Financing

Helps product distributors that have a purchase order from a large client and need funds to fulfil it. Helps cover direct supplier expenses, enabling you to fulfil the order.

Service: Invoice factoring

Invoice factoring allows you to finance accounts receivable that pay in 30 to 60 days. It provides funds to pay for essential company expenses and to handle new growth.

Small and midsize companies that offer 30- to 60-day terms to clients often need to rely on cash reserves to cover expenses. This situation can create cash flow problems if your cash reserves are small or your company is growing quickly.

Factoring solves this problem and improves cash flow. It provides a stable financial platform that can be used to grow the company.

a) How does it work?

Most factoring transactions finance your invoices in two instalments. The first instalment is called the advance. It covers around 80% to 90% of your invoices and is deposited into your bank account shortly after processing the invoice.

The second instalment is deposited into your account shortly after your customer pays the invoice. It covers the remaining 10% to 20% of the invoice, less the fees. To learn more, read “How Does Factoring Work?

b) High advances

A high advance is essential to the success of your company. Our advances range from 80% to 97% and vary based on your industry and transaction risk profile.

Some industries, such as transportation and staffing, usually qualify for the highest advances. The average advance is 85%.

c) Competitive rates

Commercial Capital offers competitive factoring rates. Factoring rates range from 1.5% to 3.5% per 30 days based on transaction volume and risk profile. For an instant rate quote, fill out this form.

d) Benefits

Factoring plans have several benefits that aren’t available with other comparable solutions. Our plans:

  1. Improve cash flow quickly
  2. Enable you to offer terms to clients
  3. Adapt to growing companies
  4. Are available to small companies
  5. Have fast approvals
  6. Can be deployed quickly

e) Simple qualification

Our programs have simple qualification requirements. Clients must:

  1. Be a provincial or federal company
  2. Have reliable commercial clients
  3. Have unencumbered invoices (e.g., PPSA)
  4. Have no serious tax or legal problems

Service: Purchase order financing

Purchase order financing helps companies that buy and resells goods to commercial clients and need funds to pay for supplier expenses. It covers the vendor cost of the order, enabling you to fulfil the order and book the revenue.

a) How does it work?

The finance company evaluates the purchase order to determine if it can be financed. If the order qualifies, the PO finance company pays the supplier directly.

All foreign suppliers that need a pre-payment are paid using a Letter of Credit (LC). Some suppliers in Canada or the US that need a pre-payment may be paid by wire if they meet the finance company’s risk criteria. Otherwise, they are paid with an LC.

The transaction can settle in two ways. It can be settled through a factoring line if you have one. Alternatively, the transaction is settled when the customer pays the order.

Each transaction is different. However, most go through these steps:

  1. Finance company issues LC to supplier
  2. Supplier manufactures product
  3. Product delivered to the end customer
  4. End customer pays, and the transaction settles

To learn more, read “How Does Purchase Order Financing Work?

b) 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

c) Competitive terms

Commercial Capital LLC (Canada) offers competitive purchase order financing terms. For more information, fill out this form or call us toll-free at (877) 300 3258.

How to choose a factoring company

Working with the right factoring company is essential to the success of your business. Evaluate each company carefully to ensure you select the best provider for your business. Consider asking the following questions as part of your due diligence:

a) Do they have offices in Ontario?

Several factoring companies offer services in Ontario, so finding a local company should be simple. Most providers have their operations center or a sales office in the Toronto – Mississauga area.

An advantage of working with a company with a regional presence is that they are familiar with the local industry players. They should also be able to provide local references if you ask for them.

There is one exception to this rule. Only a few companies specialize in purchase order financing. In these cases, you may be better off working with a company that is not local as long as they can finance your specific transaction effectively.

b) What industry do they specialize in?

Most factoring companies can work with clients in most industries. However, some factoring companies specialize in specific industries, such as transportation or staffing. In most cases, you are better off working with a company that specializes in your industry. They are familiar with your customers and their nuances.

c) Do they offer flexible terms?

Evaluate the terms that the prospective finance company offers. Make sure that their terms have the flexibility to meet your objectives. You want to avoid being in a financing plan that has outlived its usefulness.

Learning centre

We want to help you make an educated decision about our services. Commercial Capital maintains a comprehensive learning centre with important information about our asset-based financing solutions. Popular articles include:

  1. What is Invoice Factoring?
  2. What is Purchase Order Financing?
  3. How to Finance a Business in Canada