Wednesday, February 21, 2024

Selecting a Factoring Company in Quebec


Factoring has gained a lot of popularity in Quebec as a way of offering financial support to businesses that need to work on their cash flow. Since Quebec is a special market when it comes to matters of invoice factoring, its laws are slightly different from those of other provinces. For this reason, when seeking factoring in Quebec, there is a need to select your provider carefully so you can get the most out of their services.

In this article, we discuss how you can find factoring services in Quebec and how you can choose the right factoring company.

Is factoring a good idea for your company?

Before you decide to approach a factoring company, you need to determine if your company needs these services. Factoring in Quebec has to meet a set of criteria, including:

  • Your business must have commercial clients.
  • The commercial clients should have a commendable credit.
  • Your company must be experiencing a delay with payments but need its clients to pay on time so that the business can run efficiently.

If your business meets the above criteria, then consulting factoring in Quebec is probably the best choice for you. If your company fails to meet the above, seek other alternatives such as bank overdrafts and applying for business loans.

Before selecting the right factoring in Quebec, you need to follow several steps. Below are some of these steps:

1. Find candidates

You can find factoring in Quebec in several ways. The two main ones are:

    ● You can look on the internet.

The internet is the best place to start, as you can find anything you want to search for. Search for different factoring companies in Quebec and look at the services they offer. Look at the reviews. A factoring company in Quebec that has positive reviews means that their services are ideal and can get considered, while those with negative reviews are a red flag that their services are sub-standard. Always go for factoring in Quebec with positive ones, as you are likely going to benefit from their best services.

    ● Recommendations.

You can consult your colleagues, business partners, or even the accountant on the best factoring in Quebec, out of their personal experience. Ask their opinion on what they think about specific factoring companies and if they would recommend their services for your business. With the right recommendation on factoring in Quebec, you not only save on time but also money. Try and come up with a list of possible factoring companies so you can make the best decision.

2. Evaluate the factoring companies.

Once you’ve come up with your list of possible factoring companies you could work together with, schedule an interview with them. Have several questions you can ask during your meeting. Such questions include:

    ● How long they have been in the factoring Quebec business

The factoring industry has been facing tremendous growth. And you want to go to a company that has been in the factoring business for a while. Choose one that has more than five years of experience. One with many years means that they have the relevant qualifications and know-how.

If you opt for a factoring company that is relatively new in the market, ask for clients they have worked with before, and check if their work ethic aligns with their mission and vision. An experienced company is always the best option.

    ● Do they have a local office?

It’s advisable to go to a factoring company that owns a local office, even in Canada. Try your level best to desist consulting factoring in Quebec that don’t have a base of operations in say, Canada, unless they have experience in Quebec. Working with a company that has a local office means that you will be aware of all the laws and regulations governing it. It means that you will avoid delays with moving from one location to another when you have a meeting.

    ● Which industries do they specialize in?

Most factoring companies are generalists and can work with any type of industry, although some have specializations. Be keen to ask if they have experience working with a business in the same industry as yours and ask some industry-related questions. It will give you an idea of whether they are an experienced company. For instance, factoring in Quebec that pride themselves on having experience in transportation should be knowledgeable on concepts such as a freight bill or bill of lading.

3. Fee structure

Ask the factoring in Quebec to give you an estimate of their costs. Let the company give you a breakdown of how much is expected from your business, so you can select the option that makes sense for your business.

4. Compare proposals

Once you’ve done the above steps, ask each of the companies you have decided to settle for to send in their proposals. Be careful not to choose one based on the rates they charge, but also the number of factoring in Quebec services they offer.

5. Make a selection

Once you’ve gone through all the proposals, choose a factoring company in Quebec that best suits all your needs. Go for a company you are comfortable to work with and one that is keen on offering you the best factoring services in Quebec.

Ieva Ofer
the authorIeva Ofer