Manitoba: Factoring Services

We are a leading provider of factoring and purchase order financing in Manitoba. Commercial Capital has over 20 years of experience financing small and midsize companies that need to improve their cash flow. We have:

1. A diverse portfolio of solutions
2. Helped more than 900 small companies
3. Financed transactions in most industries
4. Experience with complex transactions

Our factoring programs improve your cash flow by financing your invoices. These programs have simple qualification criteria, they can be deployed quickly, and they provide a platform to support future growth.

Fill out this form for an immediate quote. Call us toll-free at (877) 300 3258 to speak with an expert.

Product Selection

Service: Invoice factoring

Invoice factoring allows you to finance your accounts receivable. It improves your cash flow and provides funds to cover business expenses. Our plans have simple qualification requirements, can be deployed quickly, and are intended for small companies.

To learn more, read “What is Invoice Factoring?”

a) How do we finance invoices?

Most factoring transactions are financed in two instalments. However, invoices from transportation carriers and staffing companies often qualify for single-instalment financing. Transactions usually follow these steps:

1. Submit invoice to factoring company
2. Factor advances 80% to 95% (varies)
3. Your client pays the invoice in 30 to 60 days
4. Factor advances remaining 5% to 20% (less fees)

To learn more, read “How does factoring work?”

b) High advances and competitive rates

A high factoring advance is essential for most clients. We provide high advances ranging from 80% to 95%. These advances vary based on industry and transaction risk.

Our factoring programs also offer competitive rates. On average, rates range from 1.5% to 3.5% per 30 days. Rates vary based on volume, length of time, and invoice quality.

Fill out this form for an immediate quote. Call us toll-free at (877) 300 3258 to speak with an expert.

c) Clear benefits

The most important benefit of using factoring is improved cash flow. This is why companies use factoring. However, factoring offers other advantages. These include the following:

1. Allows you to offer terms to clients
2. Line grows with your business
3. Can be deployed quickly
4. Simple qualification

d) Simple qualification requirements

Each program has specific qualification requirements. Generally, clients must:

1. Be a provincial or federal company
2. Have creditworthy invoices
3. Have good billing practices
4. Be free of legal and tax problems
5. Have unencumbered accounts receivable (e.g., no PPSA)

Service: Purchase order financing

Purchase order funding helps wholesalers that have a large purchase order and need funds to pay suppliers. It covers the supplier costs associated with the order, enabling you to complete it.

To learn more, read “What is PO Financing?”

a) How does it work?

The first step is to submit the transaction for approval. The financing company evaluates the transaction and your company to ensure they meet funding criteria.

The PO financing company handles all supplier payments directly. Foreign suppliers that must be pre-paid are paid with a Letter of Credit (LC). Canadian and US suppliers may be paid by wire if they meet certain requirements. Otherwise, they are paid using an LC.

Transactions can settle in two ways. They can settle through a factoring line if needed. Otherwise, they settle once the customer pays the invoice.

Learn more, read “How Does Purchase Order Financing Work?”

b) Benefits

Purchase order financing has several advantages over other solutions. These include the following:

1. Enables you to fulfil large orders
2. Transactional ease
3. Simple qualification

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

Note that purchase order financing cannot be used by manufacturing companies. 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.

Choose the right factoring partner

Selecting the best factoring company is an important decision for your company. Evaluate each partner carefully through your due diligence process. And consider asking the following questions:

1. How long have they been in business?

You are usually better served by a company that has been around for a few years and is operated by seasoned managers. Longevity shows that they can manage their factoring portfolio in different economic environments.

2. Are they familiar with your industry?

Factoring companies can usually work with clients in most industries. However, some specialize in certain industries. You are usually better served by a factoring company that specializes in your industry.

Note: There are several specialist factoring companies that can work with Manitoba’s oilfield services and transportation industries.

3. Are their terms competitive?

You want to avoid staying with a factoring plan that has outlived its usefulness. The factor you work with should offer high advances at competitive rates. The contract term should be short enough to ensure you don’t stay on longer than needed.

Essential reading

We want to help you make an educated decision about using factoring. Our learning centre has several articles about business financing. Popular articles include:

1. How to Finance a Business in Canada
2. How to Offer Net-30 Terms
3. How to Offer Early Payment Discounts

Service areas

We can work with companies in all areas of the province, including Winnipeg, Brandon, and Thompson.