Accounts Receivable Factoring Canada —
Invoice Factoring and AR Financing Through 30+ Lenders
Canada Business Loan Experts arranges accounts receivable factoring and invoice financing for Canadian businesses across all industries. If your business has outstanding B2B invoices, CBLE can match you with factoring companies that will advance up to 90% of the invoice value within 24–48 hours. We work as your broker, not as a direct lender.
How Invoice Factoring Works
What Is Accounts Receivable Factoring in Canada?
Accounts receivable factoring — commonly called invoice factoring — is a financing arrangement where a business sells its outstanding B2B invoices to a factoring company at a small discount in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for a customer to pay, you receive up to 90% of the invoice value within 24–48 hours. The factoring company then collects the invoice directly from your customer and remits the remaining balance to you, minus its fee.
Invoice factoring is not a loan. There is no debt added to your balance sheet, no fixed repayment schedule, and no interest rate. The cost is a factoring fee (typically 1–4% of the invoice value) deducted when your customer pays. For businesses with strong receivables but slow-paying customers, AR factoring converts outstanding invoices into immediate working capital without creating new debt.
You Issue
$100,000
Invoice to your B2B customer. Net 30–90 day terms.
CBLE Advances
$85,000–$90,000
Within 24–48 hrs. You have cash now, not in 60 days.
Customer Pays
$100,000
Factoring company collects. Remits balance minus fee.
You Receive
$97,000–$98,000
Total received. Factoring fee: 2–3% of invoice.
The CBLE Process
How Invoice Factoring Works With CBLE
CBLE is a broker — we do not factor invoices directly. Our role is to package your application and match it to the factoring companies in our network best positioned to fund your receivables at the most competitive rates. Rather than applying to a single factoring company and accepting whatever terms they offer, you receive competing proposals from multiple AR factoring companies.
Submit Your Receivables
Tell Stuart your monthly invoice volume, average invoice size, customer payment terms, and industry. No lengthy application — a 5-minute conversation is enough to assess your file.
CBLE Matches Your File
Your receivables profile is presented to factoring companies in our network that specialize in your industry and invoice volume. You receive competing advance rates and fee structures — not a single take-it-or-leave-it offer.
Funding in 24–48 Hours
Once you select a factoring company and complete their onboarding (typically 1–2 business days), your first invoice advance arrives within 24–48 hours. Subsequent advances on new invoices are typically same-day or next-day.
Rates and Fees
AR Factoring Rates in Canada
Accounts receivable factoring rates in Canada are quoted as a percentage of the invoice face value, not as an annual interest rate. The factoring fee typically ranges from 1–4% per invoice, depending on your industry, invoice volume, customer credit quality, and the average time your customers take to pay. The fee structure varies by factoring company — CBLE's role is to present your file to multiple factoring companies so competing offers determine what you actually pay.
| Factor | Lower Rates | Higher Rates |
|---|---|---|
| Monthly invoice volume | $250K+ per month | Under $50K per month |
| Customer payment terms | Net 30 or less | Net 60–90 |
| Customer credit quality | Creditworthy large businesses / government | Small or unrated customers |
| Industry | Trucking, staffing, government contracts | Construction (holdbacks), retail |
| Recourse type | Recourse factoring (you bear non-payment risk) | Non-recourse (factoring company bears risk) |
Recourse Factoring
You remain responsible if your customer does not pay the invoice. The factoring company advances cash against your invoices, but if a customer defaults or disputes the invoice, you must buy it back. Recourse factoring carries lower fees because the factoring company's risk is limited. Most small business factoring arrangements in Canada are recourse.
Non-Recourse Factoring
The factoring company assumes the credit risk on your customers. If a customer becomes insolvent and cannot pay, the factoring company absorbs the loss — you are not required to buy back the invoice. Non-recourse factoring carries higher fees and is typically only available for invoices issued to financially strong, verifiable customers. Government contracts and large corporate buyers often qualify.
Eligibility
Who Qualifies for Invoice Factoring in Canada?
Accounts receivable factoring approval is based primarily on the creditworthiness of your customers — the businesses that owe you money — not on your own credit score or financial history. This makes AR factoring accessible to startups, businesses with poor credit, and companies that have been declined by banks for traditional financing. As long as you issue invoices to other businesses or government entities, and those invoices are legitimate and unencumbered, factoring may be available to you.
Trucking & Freight
Construction & Trades
Staffing & Recruitment
Government Contractors
Manufacturing & Distribution
Technology & IT Services
- B2B invoices (business-to-business or government)
- Invoices for completed work or delivered goods
- Customer is a verifiable, operating business
- Invoices are not already pledged as loan collateral
- No active customer disputes on invoices to be factored
- Startups welcome — no minimum time in business for most factoring programs
- All credit scores — your credit score is secondary to your customers'
- CRA tax arrears: most factoring companies accept if a repayment plan is in place
Invoice factoring does not work for consumer invoices (B2C), personal services billed to individuals, or invoices where the goods or services have not yet been delivered. CBLE will confirm whether your receivables qualify during the initial review — submit your details and Stuart will assess your file the same business day.
Invoice Factoring Across Canada
Invoice Factoring in Ontario, Alberta, BC & Across Canada
CBLE arranges accounts receivable factoring for Canadian businesses in every province. Our network of factoring companies funds invoices nationally with no provincial restrictions.
Ontario
Invoice factoring for Toronto, Ottawa, Mississauga, Hamilton, and businesses across Ontario. Trucking, construction, staffing, and technology are the most active factoring sectors. Same-day advance available for established factoring clients in Ontario.
British Columbia
AR factoring for Vancouver, Victoria, Surrey, Kelowna, and across BC. Trucking and freight companies, construction subcontractors, government service providers, and tech companies with enterprise clients served regularly.
Alberta
Invoice factoring for Calgary, Edmonton, Red Deer, Fort McMurray, and across Alberta. Oil and gas services, energy sector subcontractors, and construction companies with slow-paying prime contractors are among the most active factoring users in Alberta.
Quebec
Accounts receivable factoring for Montreal, Quebec City, and businesses across Quebec. Manufacturing, distribution, and staffing companies served. Bilingual service available through CBLE.
Manitoba & Saskatchewan
Invoice factoring for Winnipeg, Regina, Saskatoon, and surrounding areas. Agriculture supply chains, transportation, and government contract businesses served through CBLE's national lender network.
Atlantic Canada
AR factoring for Nova Scotia, New Brunswick, PEI, and Newfoundland. National factoring companies in CBLE's network fund invoices in all Atlantic provinces with no minimum volume thresholds for most programs.
Why CBLE
Why Work With a Factoring Broker vs. a Single Factoring Company
Access to 30+ Factoring Companies
When you contact a single factoring company directly, you receive one offer on their standard terms. When you work through CBLE, your receivables profile is presented to multiple factoring companies in our network — banks, credit unions, independent factors, and specialty lenders. Competing offers determine your advance rate and fee structure, not any single company's posted rates.
Industry-Matched Lenders
Factoring companies specialize. A trucking factoring company operates differently from a staffing factor or a construction factor. CBLE matches your file to factoring companies that actively fund your industry — which means faster approvals, higher advance rates, and fewer documentation requirements than a generalist factor who treats your invoices as an edge case.
No Upfront Fees, No Obligation
CBLE charges no upfront fees and no obligation fees to assess your file, match you with factoring companies, or present competing offers. You pay nothing until you accept a factoring arrangement and begin drawing against your invoices. If factoring is not the right product for your situation, Stuart will tell you and recommend what is.
One Application, Multiple Proposals
Applying directly to multiple factoring companies means multiple credit checks, multiple applications, and multiple sets of documentation. CBLE handles a single intake and presents your file to the right factoring companies on your behalf. You review competing proposals and choose — without repeating the application process multiple times or tipping off competitors by approaching multiple lenders directly.
Turn invoices into cash — no debt, no waiting
Apply for Invoice Factoring in Canada
Fill in the short form and Stuart will review your receivables and call you within one business day. All industries considered. Startups and businesses with imperfect credit welcome.
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Common Questions
Frequently Asked Questions: Invoice Factoring Canada
What is accounts receivable factoring and how does it work?
Accounts receivable factoring — also called AR factoring or invoice factoring — is a financing arrangement where a business sells its outstanding B2B invoices to a factoring company in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for customers to pay, you receive up to 85–90% of the invoice value within 24–48 hours. The factoring company then collects the invoice from your customer on the due date and remits the remaining balance to you, minus its factoring fee.
AR factoring is not a loan. There is no debt created, no monthly repayment schedule, and no interest charges. The cost is a flat factoring fee — typically 1–4% of the invoice value — deducted when your customer pays. This makes invoice factoring fundamentally different from a line of credit or working capital loan: you are converting an existing asset (your receivables) into cash, not borrowing against future earnings.
Canada Business Loan Experts arranges accounts receivable factoring through a network of 30+ factoring companies, banks, and alternative lenders. CBLE's role as a broker is to match your receivables profile to the factoring companies best positioned to advance the highest percentage of your invoice value at the lowest fee.
What does AR factoring cost in Canada?
Accounts receivable factoring rates in Canada are quoted as a percentage of the invoice face value, typically ranging from 1–4% per invoice. The factoring fee is not an annual interest rate — it is a flat cost deducted when your customer pays. On a $100,000 invoice with a 2% factoring fee, the cost is $2,000. You received $85,000–$90,000 upfront and collected a net $97,000–$98,000 in total — having had the cash available 30–60 days earlier.
The factors that most affect your factoring rate are: your monthly invoice volume (higher volume attracts lower rates), your customers' credit quality (stronger customers mean lower risk and lower fees), how quickly your customers typically pay (Net 30 attracts lower rates than Net 90), your industry (trucking and government contracts attract lower rates than construction with holdbacks), and whether you require recourse or non-recourse factoring.
CBLE presents your receivables profile to multiple factoring companies so competing proposals determine your actual rate — not any single company's posted fees. Submit your details and Stuart will give you a realistic range based on your specific invoice profile.
What is the difference between recourse and non-recourse factoring?
In recourse factoring, you remain responsible if your customer does not pay the invoice. If a customer defaults or becomes insolvent, the factoring company can require you to buy back the unpaid invoice at face value. Because the factoring company's credit risk is limited to you rather than your customer, recourse factoring carries lower fees. Most small business factoring arrangements in Canada are recourse — it is the standard product for businesses with creditworthy, established customers.
In non-recourse factoring, the factoring company assumes the credit risk on your customers. If a customer becomes insolvent and cannot pay, the factoring company absorbs the loss. Non-recourse factoring carries higher fees and is typically only available for invoices issued to large, financially verifiable customers — government agencies, publicly traded companies, and large corporate buyers. You are paying a premium for credit insurance on your receivables, not just for the advance.
For most Canadian small businesses, recourse factoring is the right product. The additional cost of non-recourse factoring is only justified if you have specific concerns about customer insolvency risk. CBLE will recommend the right structure based on your customer profile and invoice volume.
Which industries use invoice factoring in Canada?
Invoice factoring is most common in industries with high invoice volumes, long customer payment cycles, and customers who are creditworthy businesses rather than individual consumers. The most active factoring sectors in Canada include trucking and freight (where carriers invoice brokers and shippers on Net 30–60 terms), staffing and recruitment (where agencies invoice corporate clients weekly or bi-weekly), construction and trades (where subcontractors invoice prime contractors with 60–90 day payment cycles), government contracting (where payment is reliable but slow), and manufacturing and distribution (where B2B sales are invoiced on standard terms).
Technology and professional services companies also use invoice factoring when enterprise clients have extended payment terms. The common factor across all these industries is the same: strong B2B receivables tied up in unpaid invoices, creating a cash flow gap between when work is completed and when payment arrives.
Invoice factoring does not work for B2C businesses (where invoices are issued to individual consumers rather than businesses), retail transactions, or invoices for goods or services not yet delivered. If your business issues B2B invoices on payment terms, submit your details and Stuart will confirm whether your receivables are factorable.
How quickly can I get funded through invoice factoring?
Once a factoring arrangement is in place, invoice advances are typically funded within 24–48 hours of submitting an invoice. The initial setup — which involves the factoring company verifying your customers, reviewing your invoices, and completing their onboarding requirements — typically takes 3–7 business days for a new factoring client. After onboarding is complete, the funding cycle is 24–48 hours per invoice submission.
The setup timeline depends on the factoring company and the complexity of your receivables. Trucking factoring typically moves faster because invoice verification is straightforward — a bill of lading and rate confirmation are standard documents. Construction and professional services can take longer if the factoring company needs to verify project completion or customer confirmation. CBLE matches your file to factoring companies that specialize in your industry, which means faster onboarding than a generalist factor unfamiliar with your documentation requirements.
If you need capital faster than the factoring onboarding process allows, a merchant cash advance or working capital loan may be a better fit for the immediate need, with factoring set up in parallel for ongoing cash flow management. Stuart will tell you what makes sense for your timeline.
Does CBLE arrange invoice factoring in Ontario and across Canada?
Yes. CBLE arranges accounts receivable factoring and invoice financing for businesses in every Canadian province, including Ontario, British Columbia, Alberta, Quebec, Manitoba, Saskatchewan, and Atlantic Canada. Our network of factoring companies funds invoices nationally with no provincial restrictions or minimum volume requirements for most programs.
Ontario is CBLE's most active invoice factoring market — Toronto, Ottawa, Mississauga, Hamilton, and businesses across the province. The trucking, staffing, construction, and technology sectors in Ontario generate the highest factoring volumes in Canada. British Columbia is active for freight and construction factoring in Vancouver and the Fraser Valley. Alberta's energy sector and construction industry create consistent demand for invoice factoring in Calgary, Edmonton, Fort McMurray, and across the province.
CBLE is based in Vancouver, BC, and Stuart Elrick handles all client files personally. If you are looking for invoice factoring in Ontario, BC, Alberta, or anywhere in Canada, call (604) 762 7350 or submit your details online and Stuart will call you within one business day.
