Saskatchewan: Invoice Factoring and PO Financing

We are a leading provider of factoring and purchase order financing in Saskatchewan. 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 provide funds to operate the business and a platform for future growth.

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

Select a solution:

Solution: Invoice factoring

Invoice factoring helps companies that offer net-30 to net-60 terms to clients and need immediate working capital. It enables you to finance your accounts receivable, which provides immediate funds to pay for company expenses.

Read “What is Factoring?” to learn more.

a) How does our program work?

Factoring programs integrate well with most small companies. Invoices are usually financed in two instalments. Transactions follow these steps:

1. You submit the invoice to the factoring company
2. Factoring company advances 80% to 95%
3. Your client pays their invoice after 30 to 60 days
4. Factoring company advances remaining funds (less fees)

Read “How does Invoice Factoring Work?” to learn more.

Note that companies in the transportation and staffing industries may qualify for single-instalment financing.

b) High advances and competitive costs

A high advance is essential for most companies as it provides the most upfront working capital. Our program provides high initial advances ranging from 80% to 95%.

We also understand that you need to control your costs carefully. Our plans offer competitive costs that range from 1.5% to 3.5% per 30 days. These rates are based on your volume, industry, and risk profile.

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

c) Clear advantages

The right factoring plan should benefit your company. It should offer the following advantages:

1. Improved cash flow
2. Ability to offer net-30 terms
3. Adaptability to growing revenues
4. Competitive terms
5. Simple qualification

d) Simple qualification

Our plans have simple qualification criteria and are available to most small companies. Companies should meet these requirements:

1. Be a provincial or federal company
2. Have high quality customers
3. Have unencumbered invoices (e.g., PPSA)
4. Have no serious tax/legal problems

Service: Purchase order funding

Purchase order funding is a specialized form of financing that covers supplier expenses related to a specific order. It enables your company to fulfil larger orders and increase its revenues. Note that this product is available only to product re-sellers.

Read “What is Purchase Order Financing?” to learn more.

a) How does it work?

The first step in every transaction is determining if the order can be financed. If the purchase order qualifies, the financing company pays the supplier on your behalf. This payment enables the supplier to deliver the goods, which lets you complete the order.

The PO financing company can also handle pre-payments when needed. All foreign suppliers must be paid using a Letter of Credit (LC). Suppliers in Canada or the US may be paid by wire transfer in some instances. Otherwise, they can also be pre-paid using an LC.

Transactions can settle in two ways. They can settle through a factoring line if you have one. Alternatively, they settle when the end customers pay their invoices.

b) Qualification requirements

Purchase order funding has simple qualification requirements. This solution is available to small and midsize 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 can be used only by re-sellers and not by companies that manufacture products directly. 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.

Partner with the right company

The factoring market is competitive, and several factoring companies offer services in Saskatchewan. Evaluate potential providers carefully to ensure they are a good match for your business. And consider asking the following questions:

1. How long have they been in business?

You are usually better off working with a factoring company that has been in business for a few years, at a minimum. Company longevity usually shows experience managing a client portfolio in different economic environments.

2. Do they have clients in your industry?

Factoring companies can work with businesses in most industries. However, many factoring companies specialize in specific industries. You are usually better off working with a factoring company with experience in your industry. They are familiar with the industry’s nuances and invoicing practices.

3. Are their terms competitive?

A good factoring plan should have a high advance, competitive rate, and reasonable terms. Examine your factoring terms carefully to ensure you don’t end up with a plan that has outlived its usefulness.

Essential reading

We want to help prospective clients make an educated decision about using our services. We keep an extensive knowledge base with articles about factoring and other solutions. Popular articles include:

1. How to Finance Your Canadian Business
2. Factoring for Oilfield Service Companies
3. What is Supplier Financing?

Service area

We can offer services across all cities of the province, including:

1. Regina
2. Saskatoon
3. Prince Albert
4. Moose Jaw