How is capitalNOW’s fee calculated?
Our one and only fee—a small percentage of the original invoice—is discounted from your invoice amount.
How long will it take to process my application?
Depending on how quickly you provide us with the few documents we need to get started, we can have your application and documentation finished in 8 business hours.
How long will it take to have a cheque in my hand?
Once the application process is complete and we’ve verified that your invoice is okay, we’ll wire the money directly to your account the same day—and generally within a couple of hours.
What’s the process like?
After you’ve set up your account with us, a normal transaction goes like this:
a) You send us a copy of the invoice and sign a 2-page document
b) We verify with your customer that the work has been completed
c) We wire the money to your account
d) It’s that simple and that quick
How is capitalNOW different from other factoring companies?
We are service-driven and provide quick responses. Our clients will tell you that we’re always friendly and are happy to hear from them.
What is the smallest business capitalNOW can assist?
We have no minimum size requirement.
Do you purchase invoices to companies outside Canada?
Yes!
But aren’t factoring companies more expensive than banks?
What’s more expensive than a lost opportunity? People come to us when banks aren’t willing to help or cannot do so in a timely fashion.
How do you communicate with my clients?
We have you introduce us to your client through a brief and friendly letter, and we’re pleased to cc you on all correspondence (generally email). We may also contact your client via telephone from time to time if necessary.
I thought factoring was used only by companies in financial “trouble”?
That’s a common misconception. Most companies, of all sizes, use factoring in one form or another. For example, all credit card transactions are actually factoring and many banks will provide asset-based loans to large companies, factoring being a type of asset-based loan.
Is factoring a type of loan?
No. We are purchasing an asset. Factoring is debt-free financing.
Do I have to factor all of my invoices?
Not at all! Factor as many or as few of your invoices as you like. Some businesses use us for “spot financing,” which means factoring just one invoice to get over a certain financial bump.
Are there any minimum volume requirements?
No. While many of our competitors expect you to commit to a particular dollar volume or time commitment, that’s not how we do business. Once you start working with us, you’ll see that there’s more to our service than just giving you cash. Most of our clients stay with us voluntarily for years.
How long is my contract for? Is there a penalty if I decide to stop factoring?
You’re welcome to factor as many or as few of your invoices as you like and to use our services for as long as you like. We know that if you like our service, you’ll stay—we would never force you to. There are no time requirements and no penalties if you decide to stop using us.
Do you verify invoices with my customers?
We have a relationship with most of the large companies in Alberta, and they’re used to hearing from us. We’ll contact your customer by phone or email to verify your invoice.
How can I be certain that capitalNOW will treat my customers well?
We treat both our customers and their clients politely and with respect. Without these relationships, we wouldn’t have a business–and we really like our business!
If my customers know that their invoices are factored, won’t they take longer to pay?
In most cases, factored invoices get paid more quickly than un-factored invoices, because we call to verify that any mistakes or omissions are dealt with up front, saving any delays.
What size business will capitalNOW finance?
We factor businesses from start-ups issuing their very first invoices to those billing $500,000 a month. Once our clients become bigger than that, we will help them get financed with a financial institution or factoring company that specializes in larger monthly volumes.
What if my company has a bankruptcy, bad credit, poor financials or other derogatory information or history?
We’re not concerned with your credit worthiness; we are concerned with the creditworthiness of your customer.
Does my business need to meet net worth, profitability, debt coverage, years in business or other financial ratio requirements?
No. Our service isn’t based on typical lending practices. We care about three things:
a) The credit of the customer paying the invoice
b) Your ability to perform your job, service, or deliver a good product
c) Your character
We want your company to be healthy, but your credit and financials are not our main concern.
Do I need to be an established business, operating a minimum number of years, to be approved?
No—we work with all kinds of businesses, from start-ups to well-established companies.
If I factor with capitalNOW, can my business still borrow money from other sources?
Yes! In fact, having your cash when you expect it will help you make loan and lease payments, improving your credit. We will work with any other lender that you have, or want to work with in the future.
Can I still factor if my business has already borrowed from a bank?
Yes. In some cases, if you have business financing you may not know that you have already pledged your invoices as security for a loan or line of credit. If that’s the case, we will work out an agreement with your bank to purchase them.
