How much does invoice factoring cost in Canada?
Factoring is priced as a discount fee on each invoice, driven by three inputs: monthly volume, your customers' credit strength, and how fast they pay. It is quoted per file — higher volume, stronger customers, and faster payment all lower the rate.
Start an applicationThere is no single published factoring rate because the fee prices a specific risk: whose invoices, how large, how old, and how reliably paid. A facility factoring large invoices to blue-chip customers on net-30 costs meaningfully less per dollar than one factoring small invoices to slow payers — the same way insurance prices the actual risk insured.
What the fee buys matters as much as its size: funding within 24 hours instead of 30 to 90 days, a facility that grows with sales without renegotiation, and professional receivables handling. The honest comparison is not factoring versus bank debt you may not be able to get — it is factoring versus the cost of turning down orders or missing payroll while waiting to be paid.
Factoring is generally cheaper than a merchant cash advance for the same business, because the delivered invoice carries less risk than an unsecured advance. Voxen quotes the rate per file, with no application fee and no credit impact to find out.
How cost is quoted, by product
Figures are typical ranges for a complete file, not guarantees. Final terms depend on revenue, time in business, credit profile and lender review.
| Merchant Cash Advance (MCA) | Factor 1.15–1.45 |
|---|---|
| Business Line of Credit | ~8–20% APR |
| Invoice Factoring | 1.5–4% of invoice |
| Equipment Financing | ~7–18% APR |
| Bridge Loan | ~10–18% APR |
| Term Loan | ~8–22% APR |
| Inventory Financing | Quoted per file |
| Purchase Order Financing | Quoted per order |
| Acquisition Financing | Stack-dependent |