If you’ve ever experienced a cash flow crunch while awaiting payment from your customers, you may have considered factoring your receivables. Factoring is when your bank, or a financial institution specializing in factoring, buys your invoices for cash -- giving you working capital and the cash flow you need to run your business when traditional funding may not be available.
There is another option that you may not have considered -- credit insurance. Credit insurance, when used with an existing bank line of credit, can help you access additional cash. Some companies that use factoring may be able to use credit insurance to reduce their factoring costs because credit insurance will make the factored invoices more appealing to the financial institution.
Several financial institutions have their own insurance policies with EDC to facilitate the discounting of receivables. Some institutions offer other services in collaboration with EDC that may be useful to your business. Below is a list of some of these financial institutions. Please contact them directly to find out more details:
Visit Accord Financial’s website or call them at 1-800-967-0015 (in Ontario) or 1-800-231-2977 (in Québec).
Visit Desjardins’s website or call them at 1-800-508-2874.
Visit HSBC’s website or contact your nearest HSBC branch for details.
National Bank of Canada
Visit National Bank of Canada’s website or contact your local National Bank of Canada branch for details.