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Invoice Factoring

Factoring Companies in Canada: 8 Best Options for Business Funding

For many business owners, the path to improving cash flow often leads to strategies like invoice factoring—a solution for turning invoices from slow-paying customers into ready working capital. This method is a boon for businesses facing unpredictable cash flow, offering an alternative to traditional financing hurdles.

If you’re a Canadian business owner or finance leader looking for a Canadian factoring partner, you’re in the right place. Canada boasts a variety of invoice factoring providers, each offering unique value. We’ve rounded up several options to make comparing them easy. 

8 Top Factoring Companies in Canada

When it comes to evaluating factoring providers in Canada, it’s essential to look into a company’s reputation, factor fee structure, credit risk policies, and speed of accessing the source of funds. Equally crucial is their management of slow-paying customers, accounting software integration compatibility, monthly volumes in terms of funding minimums and maximums, as well as their repayment terms—all among the aspects we considered when creating this list. Here are 8 invoice factoring providers in Canada to consider. If you’re in Ontario, see our page on invoice factoring Ontario for more specific info. 


FundThrough is an AI-powered invoice funding platform that gives Canadian business owners flexible access to working capital on their terms. As a factoring company in Canada, FundThrough provides unlimited working capital based on the size of your outstanding customer accounts – so your funding grows as you grow. FundThrough offers amazing customer service – with the highest customer satisfaction rate in the industry, and works with businesses across North America. (If you’re looking for factoring elsewhere, see our pages on Texas invoice factoringHouston factoring companies.)

Funding Amounts

Our Invoice Factoring solution provides unlimited funding – for as much as you have in eligible accounts receivable.


  • No Hidden Fees: Transparency is key at FundThrough. Clients pay one flat fee without any surprises.
  • 100% Advance Rates: Unlock the full value of your invoices, less a single, upfront fee, ensuring you get the most out of your financing.
  • Flexibility: Choose which invoices to fund and when to fund them, giving you complete control over your cash flow. No minimum required funding amount after your first funding.
  • Accounting integrations: Sync your QuickBooks or OpenInvoice account to automatically pull in eligible invoices. We can still fund businesses who don’t use these platforms.
  • Rapid Funding: Access funds for your outstanding invoices within days, not weeks or months, keeping your business momentum going.
  • Easy application: Complete your application in minutes through our user-friendly platform.
  • Technology unlocks efficiency: AI and automation make the funding process quick and easy
  • Dedicated Support: A highly rated support team acts as your partner, dedicated to your success.
  • Industry expertise: Serving a wide array of sectors, including the oil and gas industry, startups, manufacturing, and more. 


  • Required to use FundThrough platform 

Ready to explore invoice factoring with FundThrough?

Riviera Finance

Riviera Financing offers invoice financing and factoring to businesses across a variety of industries, including transportation, staffing, energy, oil & gas companies, telecommunications, utilities, and more. Riviera Finance offers financing services to most B2B businesses, regardless of how long they’ve been in business or their monthly revenue. 

Factoring agreements are tailored to each business, and are managed by local offices. However, even businesses that aren’t close to a physical office are still eligible for Riviera Finance.

Funding Amounts

Riviera Financing has a credit facility size of $5K – $2M, and provides an advance rate of up to 95%. Their discount rate typically starts at 2%, and there is an early termination fee. 


  • Ideal for startups and small businesses with little credit history
  • No credit score requirements
  • Flexible financing options
  • No monthly minimums, competitive fees
  • Bankruptcy protection via non-recourse invoice factoring
  • Ease of application process


  • Unsuited for B2C businesses
  • Advance amounts listed on site but not factoring fees

1st Commercial Credit

1st Commercial Credit is a factoring company in Canada that works with businesses across North America. It offers supply chain financing solutions, including A/R financing, P/O financing, and trade payable financing. 

Funding amounts

1st Commercial Credit offers funding for small and large companies ranging from as little as $10,000 a month to $10 million in credit line facilities. Financing rates range from 0.69%-4%. Businesses can access up to $350,000 with no financials needed.


  • No setup fees
  • Customized rates
  • Setup in just 3-5 days
  • Access to free invoicing software
  • Once approved, funds are advanced in 24 hours


  • Funding greater than $350K requires financial information and documents


eCapital – which acquired Accutrac Capital in 2019 – provides a wide range factoring solutions and lending services for businesses of different sizes with varying needs. It offers invoice factoring in addition to freight factoring, payroll funding, asset-based lending, lines of credit, and other services.  

Funding amounts

With eCapital, there’s no predetermined funding amount. The more invoices you produce, the more funding becomes available. You will, however, need to have at least $30,000 in monthly sales in order to qualify. It offers credit facilities up to $30 million. 


  • Non-recourse factoring
  • Purchase order financing
  • Funds released same day
  • No hidden fees


  • Must have $30,000 in monthly sales minimum to qualify
  • Fee amounts not found online

JD Factors

J D Factors has been providing non-recourse receivables factoring since 1989, and boasts its superior customer service and support. They work with businesses in the manufacturing, staffing, oil and gas, and trucking industries. 

Funding amounts

J D Factors provides invoice factoring services from $5,000 – $2,000,000. Their fee starts at a 2% discount rate per invoice.


  • Non-recourse factoring
  • Provides customized solutions
  • Flexible terms
  • Upfront, transparent pricing


  • Advances up to 95% of invoice

Express Business Funding

Express Business Funding is a Canadian factoring agency that leads in non-notification factoring to Canadian companies. They work with businesses in the staffing, trucking companies, oil and gas, manufacturing, and business services industries. They have both east and west coast offices to serve businesses in all time zones across the country. EBF is the standard or bar setter of the Canadian factoring industry, particularly in their respective niches, being on the forefront of factoring and alternative finance innovation. They have created a synergistic mix of the best of traditional factoring and modern finance to develop a range of financing products that meet their client’s true needs. Being industry and logistically agnostic allows EBF to fund clients in almost all industries and geographic location across Canada.

Funding amounts

$300K TO $10MM SMEs


  • Innovative range of products
  • Flexible products to suit clients needs
  • Upfront, simple fees, transparent pricing
  • Industry and geographically agnostic
  • Advance rate of 75% to 90%
  • Fair daily rate
  • Does not require two years of statements; will factor new companies with good quality A/R 


  • Does not fund in Quebec
  • Does not fund single invoices


Accord Financial Corp.

Accord Financial is a leading finance company that provides an array of working capital solutions to small and medium-sized companies across the United States and Canada. In addition to accounts receivable financing, they also offer asset-based lending, small business loans, and equipment financing.

Funding amounts

Accord has credit facilities between $500,000-$2 million, and provides an offer letter within 48 hours. 


  • No setup or application fee
  • No financial covenants requirements
  • Single debtor factoring available
  • Available credit facilities for those with capital requirements greater than $2M


  • Advances 75% to 90% of invoice
  • Requires 30-days cancellation notice


REV Capital

REV Capital is a leading provider of full-service factoring services in Canada and the United States, with eight offices across North America. It supports thousands of businesses with its invoice management, credit underwriting, and collection services.

Funding amounts

Fees range from 1% to 3%, and they offer facilities up to $25 million. 


  • Online portal for 24/7 monitoring
  • Customized financial solutions
  • Dedicated client relationship manager
  • Full service facilities
  • Advance rates of 100%


  • No liens on A/R

FundThrough integrates with most popular accounting and invoicing apps to save you time during setup. If your software isn’t supported, don’t worry – you can manually upload invoices onto the platform.

Users have the ability to fund invoices of any size on FundThrough’s platform. Invoices must be less than 90 days old to be eligible for funding. Remember that FundThrough integrates with most popular accounting and invoicing apps to automatically pull invoices that are eligible for funding onto your dashboard.

Innovation is one of our company values! FundThrough leverages technology to automate the manual processes that many traditional financial institutions still use today. This allows us to provide you with a funding limit and process your invoices in as little as one business day.

If you’re interested in using FundThrough but don’t see a payment plan that suits the needs of your business, reach out to our support team who will work closely with you to find a solution that fits your business.

FundThrough uses information from your business banking account and accounting software to assess your cash flow and provide you with a suitable funding limit.

No. Creating a FundThrough account and advancing invoices will not affect your credit score.

We are obligated to report any bad-faith borrowing or fraudulent activity to the appropriate credit bureau.

Yes. FundThrough uses secure, bank-grade, 256-bit encryption to protect your data. We never see or store third-party usernames or passwords.

Yes, opening and keeping a funding account doesn’t cost a thing. We don’t charge annual fees and you’re never obligated to advance invoices. Many owners simply enjoy having FundThrough in their back pocket, ready for a rainy day cash flow gap – we fit neatly next to your umbrella.

We can’t imagine why you’d ever do such a thing, but if push comes to shove, of course you can. Please connect to one of our support representatives online, and they will assist you in cancelling your account.

FundThrough was launched in 2014 and has since shot up to become a leader in the financial technology space, funding tens of millions of dollars in invoices every month. We’re backed by some amazing VC and angel investors and are continuously developing new products to serve under-banked small businesses across the U.S. and Canada.

Canadians have many alternative financing options at their disposal, meaning there’s a fit for almost every need. From the speed of accessing funds to the management of accounts and integration with existing systems, it’s crucial to choose a provider that aligns with your specific business requirements.

Ready to fund an invoice?


What Is Factoring?

Invoice factoring is a form of cash advance where a business owner sells unpaid invoices to a factoring provider for an immediate source of funds. The business owner gets liquid capital for the invoice amount, usually after deducting any factor fee, ahead of the payment terms. The business owner’s commercial client, who has the responsibility of settling the invoice, then pays the factoring company directly according to the original payment terms.

Invoice factoring is also known by the terms accounts receivable factoring or receivable financing. (It’s vital to highlight that invoice factoring differs from invoice financing, where a service provider or factoring company still offers a business owner cash for their invoice, but the business owner repays the invoice amount themselves, plus a fee.)

How does factoring work?

Every factoring company has its own unique aspects, but most factoring companies operate in a similar fashion. This is more or less what you can expect when you factor an invoice.

  • Business owner submits outstanding invoices for funding. Traditional invoice factoring companies often bind businesses with annual contracts where they must factor all invoices. With many newer companies, you can choose which invoices you want to fund. FundThrough lets you pick which invoices to fund with no minimum funding obligation, unlimited funding, and no long-term contracts requiring you to fund.
  • Factoring company does due diligence. Oftentimes this will include checking bank statements to ensure that a business is legally established, is up-to-date on taxes, and doesn’t have liens on their accounts receivable and/or the specific invoice. In this stage, the factoring company also assesses the credit strength and validity of the invoice to ensure its authenticity.1
  • The business’ customer is asked to sign an NOA. Having the customer owing the invoice sign a Notice of Assignment means they understand that the factoring company now owns the invoice so they can redirect payment. While a lot of business owners get concerned about their customers being involved, many large companies are used to this process. See how FundThrough works with your customers if this concerns you. 
  • The business owner gets funded. The business owner receives cash in their bank account, less a fee (or, the invoice factoring cost). They can now have peace of mind that they have cash available to grow their business or cover any other cash flow gap. (This is our favorite part!)
  • The customer pays the factoring company according to the invoice terms. When the invoice is due, the customer pays the factoring company, and the funding process is complete.

Types of factoring

There are several different ways factoring is classified. The first is based on how you use factoring as a financing tool:

1. Whole turnover: You sell your invoices to a third-party that advances you a percentage (typically 70-80%) and pays you the rest, minus their service charge, when they collect from your client.

2. Selective: You have an ongoing relationship with the third-party factoring company that allows you to choose which invoices to fund and when.

3. Spot factoring: This means you can choose the invoices you want to fund and fund them only when you need working capital. FundThrough offer spot factoring because it gives our clients the greatest flexibility in managing their cash flow. 

The second way invoice factoring is classified refers to the structure of your agreement with the factoring company:

1. Factoring with recourse: With this form of factoring, you shoulder the credit risk. If the invoice isn’t settled by your client, you’re accountable for repaying the advanced amount to the factoring company.

2. Factoring without recourse:With non-recourse factoring, the liability of an unpaid invoice transfers to the factoring company. This means you are not responsible for unpaid invoices.

Pros of factoring

There are a wide variety of advantages of factoring, including:

  • Debt-free funding (invoice factoring is not a loan!)
  • Non-dilutive capital.
  • Much faster turnaround time than bank financing.
  • Save time without having to chase accounts receivable.

Cons of factoring

Like any financing method, factoring isn’t perfect. Here are the main perceived disadvantages of factoring invoices:


Get more info on invoice factoring advantages and disadvantages.

What does factoring cost?

Every invoice financing company uses their own factoring accounts receivable formula, and it’s important to recognize how dollar amounts can affect your decision. We can only speak for FundThrough. With us, funding rates range between 2.75% per 30 days per our pricing page – with no hidden fees and no contract requiring you to fund.

Invoice factoring rates can vary widely depending on the provider and their specific pricing model. Here are some key factors that might influence the overall cost:

Invoice Terms: Shorter payment terms like Net 30 can cost less than longer terms such as Net 60, assuming timely payment by your customer.

Invoice Size: Larger invoices might attract lower factoring fees, as some factors offer scaled pricing based on invoice value.

Customer Creditworthiness: The financial stability and credit risk associated with your customer can influence your factoring rates.

Industry Risk: Certain industries may be deemed higher risk, potentially affecting rates. 

Invoice Volume: Engaging in high-volume factoring or consistently using factoring services can lead to more favorable pricing.

Factoring Type: Rates can vary between recourse and non-recourse factoring, with non-recourse generally costing more due to the factor assuming a higher risk.

For a comprehensive breakdown of what goes into the total cost of factoring, see our article on invoice factoring rates.

What Businesses Qualify for Factoring?

Businesses of various credit strengths and sizes can qualify for factoring, making it an helpful for those looking for alternative funding solutions. Whether a company has a perfect credit score or is still building its financial reputation, factoring is accessible because it depends more on the credit of your customer than your own. Small businesses use invoice factoring, as well as larger corporations. Factoring is a common practice in the freight industry, staffing industry, oil and gas industry, and other industries.

What Is a Factoring Company?

An invoice factoring company – also sometimes called a factor – is a company that provides invoice factoring services. They’ll advance the invoice amount (minus any fees) and wait to collect on the original invoice terms from the original customer.

What to Look for in a Factoring Company

The best factoring company in the gives you access to quick funding when you need it, often within a business day, that suit your needs. Each company will require certain steps and documents in order to qualify, but most of them have a similar factoring process. There are a number of factoring companies in Canada, so it’s important to compare your options to ensure you’re getting the right fit for your unique situation.

Do factoring companies need to be local?

While some business owners feel more comfortable with a local company, a receivable factoring company doesn’t have to be local to pay your invoices quickly. With online factoring, you can get invoices funded across North America. If you’re a Canadian business, you can check out our guide that reviews some of the most reputable factoring companies in Canada.

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