Invoice financing in Canada

How the structure works

The label alone does not establish whether receivables are sold or pledged; inspect the agreement.

The label does not establish the amount, rate, security, personal guarantee, fees or decision time available to a particular business. Obtain the actual agreement and disclosure from the applicable provider.

Tradeoffs to consider

• Terminology differs across providers.
• The collection and security arrangements need explicit confirmation.

Questions to ask before accepting

• Is this a receivable sale or borrowing secured by invoices?
• What invoices are excluded from the funding base?

Documents to prepare for a provider discussion

• Business financial statements and cash-flow forecast
• Recent business bank statements
• Business identity and ownership information
• Details of existing obligations
• Receivables aging

Compare the cash-flow commitment

Write down net proceeds, the complete payment schedule, upfront and ongoing fees, conditions for changes, and the cost of early repayment. Test whether the business can meet the obligation when receipts are delayed.

Sources and editorial scope

• BDC: factoring

  Verified 2026-09-30 · CA · Primary source

• BDC: asset-based lending

  Verified 2026-09-30 · CA · Primary source

Sources support product mechanics. CBL’s tradeoffs and preparation questions are educational synthesis; they do not represent any provider’s underwriting policy. Editorial policy