We help small companies that need funds to pay employees, suppliers, and other essential business expenses. Commercial Capital LLC is a leading provider of factoring and purchase order financing in Alberta. We have:
- Over 20 years of experience
- Expertise in local industries
- Easy qualification requirements
- Competitive terms
- Fast turnaround
Our factoring programs improve your cash flow by financing your accounts receivable. These programs have simple qualification criteria, they can be deployed quickly, and they provide a platform to support your growth plans.
Fill out this form for an immediate quote. Call us toll-free at (877) 300 3258 to speak with an expert.
Product Selection
Invoice Factoring
Provides an advance on your slow-paying invoices from creditworthy customers. Works in most industries including business services, manufacturing, consulting, and oilfield services.
Freight Factoring
Specialized program for transportation carriers and freight brokers. The program provides an advance on slow-paying freight bills.
Supplier Financing
Specialized program that helps manufacturing companies and distributors that need to buy materials to build inventory or fulfill orders.
Purchase Order Financing
Specialized program for distributors, wholesalers and resellers. Helps your company fulfill large purchase orders by helping with supplier expenses.
Service: Invoice Factoring
Factoring helps companies improve their cash flow by financing their accounts receivable. It provides funds to run the business and take on new opportunities.
Learn more: Read “What is Invoice Factoring?“
a) How does invoice factoring work?
Invoice factoring is simple to use and can be implemented by most small businesses. Most transactions are funded in two instalments, though this varies by industry.
Transactions work as follows:
- Submit invoice to factor for processing
- Factor advances 80% to 95%
- Your clients pays the invoice on the usual terms
- Factoring company deposits 5% to 20% (less the fee)
Note that some companies in transportation may qualify for single-instalment transactions. To learn more about transaction structure, read “How Does Invoice Factoring Work?“
b) Low costs
The average factoring rate ranges from 1.5% to 3.5% per 30 days. Your volume and transaction risk profile determine this rate. Rates can be pro-rated.
Fill out this form for more information, or call us toll-free at (877) 300 3258 to speak with an expert.
c) High advances
We can provide high factoring advances from 80% to 95%. The advance varies by industry and transaction risk profile. Companies in transportation and staffing can qualify for higher advances that start at 90%.
d) Benefits
Factoring offers several benefits to small companies. These include the following:
- Improves cash flow quickly
- Enables you to offer net-30 terns
- Grows with your business
- Simple qualification
e) Industries
We can work with companies in most industries. Many of our clients in Alberta are in the transportation and oilfield services industries. We offer specialized services to companies in those industries and have worked with companies in:
Service: Purchase order financing
Purchase order financing helps product resellers cover the supplier cost associated with a large purchase order. The finance company pays the supplier directly, enabling you to fulfil the order and book the revenue.
To learn more, read “What is Purchase Order Financing?“
a) How does purchase order financing work?
The finance company evaluates the purchase order to ensure it meets the criteria for funding. If the purchase order is approved, the finance company handles the supplier payment directly.
Foreign suppliers that need a pre-payment are paid using a Letter of Credit (LC). Suppliers in Canada or the US that qualify can be paid by wire transfer. Otherwise, they can be paid with an LC. Transactions work as follows:
- Finance company pays supplier
- Supplier delivers goods to end client
- End client received invoice
- Transaction settles
Transactions have two ways of settling. They can settle through a factoring line, if needed. Alternatively, they can settle once the end customer pays for the goods.
Learn more, read “How Does PO Financing Work?“
b) Qualification criteria
Purchase order financing is available to small and midsize companies. Qualification requirements include:
- Must be a product reseller
- Must have sold the product before
- Profit margins over 20%
- Minimum order of $100,000
Note that purchase order financing cannot be used to finance companies that manufacture goods. These companies should consider supplier financing instead.
Choosing a factoring company
Working with the best factoring company is essential to the success of your business. Evaluate each company carefully to ensure you choose the right provider for your business. Consider asking the following questions as part of your due diligence:
1. How long have they been in business?
You are usually better off working with a factoring company that has been around for at least a few years. Longevity shows that they can manage a client portfolio during different economic environments.
2. Do they know your industry well?
The majority of factoring companies can finance clients in most industries. Alberta has a heavy concentration of companies in the oil and gas industry, as well as transportation companies. These two industries require some specialization. You are better off with a factoring company familiar with your industry and its nuances. They should also be able to provide you with better terms.
3. Are their terms competitive?
Evaluate your factoring company’s rates, advances, and contract terms carefully. Ensure that they support your business model. You don’t want a factoring program that has outlived its usefulness, so enquire about short-term contracts.
Essential reading
We want to help you make an educated decision about our programs and how they work. Commercial Capital keeps a learning centre with useful articles. These include: