How to qualify for invoice factoring in Canada
Invoice factoring converts B2B receivables into immediate cash. Unlike traditional lending, the primary credit decision is on your customers — the businesses paying the invoices — not on you.
Start an applicationDocuments typically required: Accounts receivable aging report; Sample invoices and contracts; Customer list with terms; Business registration and recent financials.
Does my business need to be profitable to qualify for factoring? No. Factoring decisions hinge on customer credit and the validity of the invoice — not on your profitability or tax filings.
Will my customers know I'm factoring? Usually yes — most facilities are notification-based. Non-notification or confidential factoring exists but is reserved for stronger, larger files.
Typical eligibility requirements
- Sell to other businesses or government on terms (net-30/60/90)
- Customers with reasonable commercial credit
- Invoices for completed and undisputed work
- Minimum monthly invoiced volume (commonly $25K+ for cost efficiency)
- No existing lien on the receivables (or willingness to subordinate)