CanFund Capital

Invoice Factoring

Advance against receivables the moment they are verified

Invoice factoring converts unpaid B2B invoices into immediate cash. CanFund verifies invoices directly against connected accounting data, then advances a percentage of face value and releases the remainder, less the fee, when the customer pays.

Apply for invoice factoringHow underwriting works
Amount
$10,000 – $2,000,000 facility
Term
Per invoice, 30 – 90 day cycles
Factoring fee
0.5% – 3% per 30 days
Speed
Advance within hours of verification

Underwriting

How invoice factoring is underwritten and priced

What the model reads

Invoice-level detail from your accounting system, customer concentration, historical days-sales-outstanding by customer, dilution history from credits and disputes, and the payer's own credit profile.

How the advance rate is set

Advance rate is a function of payer quality and dilution history, typically 80% to 92% of face value. Payers with consistent on-time history earn higher advance rates than the account average.

Why underwriting looks at your customer

In factoring, credit risk sits primarily with the payer, not with you. That is why businesses too young for a term loan can still factor, provided their customers are creditworthy.

Mechanics

How the structure operates, step by step

  1. 01

    Invoice synced

    Invoices import from your accounting system automatically.

  2. 02

    Verification runs

    Invoice details are matched against delivery and payer records.

  3. 03

    Advance released

    The advance percentage funds to your account.

  4. 04

    Reserve settled

    The remainder, less the fee, releases when the payer pays.

Eligibility snapshot

What qualifies for this product

Customer type
B2B or B2G invoices only
Time in business
3+ months
Invoice terms
Net 15 – Net 90
Accounting connection
Required for verification
Minimum invoice
$1,000

Criteria are directional, not absolute. Files near a threshold are reviewed by a credit analyst. Average decision time across products is 4m 12s.

Businesses funded this week0

Restaurants, clinics, contractors, and online sellers — funded every day.

Questions

Invoice Factoring questions, answered directly

What is the difference between invoice factoring and an invoice loan?
Factoring sells the receivable to the funder, who then owns the invoice and typically collects from the payer. An invoice loan, or AR line, borrows against receivables that remain yours to collect. Factoring generally advances more of the face value because ownership transfers; an AR line preserves your direct collection relationship.
Will my customers know I am factoring invoices?
It depends on the structure. Notification factoring informs the payer and redirects remittance to a lockbox. Non-notification factoring keeps the relationship unchanged but requires a stronger borrower profile and usually a lower advance rate.
What happens if my customer does not pay the invoice?
Under recourse factoring, the invoice is charged back to you after an agreed period, typically 90 days. Under non-recourse factoring, the funder absorbs a defined credit loss, though non-recourse usually excludes disputes over delivery or quality and prices higher.

More questions are answered on the full FAQ.

Get a priced invoice factoring offer

Connect a business bank account to see structure, cost, and total dollar obligation before signing anything.

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