Use Case: Payroll
Your crew gets paid on Friday. Your customers do not.
Payroll pressure is often a timing problem rather than a long-term capital problem. If customers are paying on 30-, 60- or 90-day terms, invoice factoring may help bring cash forward. In other situations, equipment refinance or another working-capital structure may make sense depending on the business. We work with 40+ Canadian lenders and financing partners to find the right fit.
The Need
Payroll gaps usually come from growth, not weakness.
Staffing firms, contractors, carriers and service companies all pay people weekly or biweekly while billing monthly and collecting later still. A new client or a big project makes the gap bigger.
Because payroll is urgent, owners often accept the first offer they get. A short-term advance can cost far more than a structure built on the invoices that payroll created in the first place.
Build a Plan
Before you apply.
Tie payroll to the work it produced
Invoices for completed work are the natural source of payroll funding. Factoring them aligns cash with labour.
Build a buffer
One or two payroll cycles in reserve removes most of the stress. For businesses that own equipment, refinancing can sometimes help build that reserve.
Plan for new hires
If a contract requires hiring, fund the first few weeks of wages as part of the contract plan, not after the fact.
Financing Routes
Ways to fund it.
The best route depends on what the business owns and what it is owed.
AR & Invoice Factoring
Advance against invoices for completed work so payroll is covered as soon as you bill.
Learn about AR & Invoice FactoringEquipment Refinance
For businesses with owned equipment, refinancing may help build a payroll reserve.
Learn about Equipment RefinanceSale-Leaseback
Turn owned equipment into a cash cushion while continuing to use it every day.
Learn about Sale-LeasebackEquipment Financing
Finance equipment purchases so cash stays available for wages.
Learn about Equipment FinancingHow It Works
Three steps to a decision.
Tell us about the business
What you are buying or already own, what you are owed and what the financing is for. A short call or the online form is enough to start.
We match the structure
We review the assets and the need, then take the file to the lenders and financing partners best suited to it.
Compare and decide
You see the amount, term and payment for each option with the trade-offs written out. Nothing moves until you choose.
What to prepare
What lenders review.
A complete file moves faster. Here is what usually helps:
- Payroll schedule and typical amounts
- Accounts receivable aging
- Recent bank statements
- Major client contracts
- List of owned equipment
- Year-end financial statements if available
Questions.
You get an answer within 48 hours. Factoring can often be set up in under a week, and after that your invoices are funded on a rolling basis, usually within a day or two of invoicing.
Not always, but it is often the most expensive option. It is worth comparing it with invoice- or asset-based structures first.
No. Receivables alone can support factoring. Equipment simply adds another option.
No. Payroll funding happens between you, your customers and the factoring company.
Next Step
Let's see if we can help!
A short conversation is usually enough to tell you which financing options fit and what they could look like.