{"id":14733,"date":"2026-07-15T06:14:24","date_gmt":"2026-07-15T10:14:24","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=14733"},"modified":"2026-07-15T06:22:02","modified_gmt":"2026-07-15T10:22:02","slug":"invoice-factoring","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/invoice-factoring\/","title":{"rendered":"Invoice factoring: How it works and why it can be useful"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tInvoice factoring: How it works and why it can be useful\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tLearn what invoice factoring is, how it works, and what the benefits of this approach are. This guide covers all the basics and will help you figure out if invoice factoring might be a smart move for your business.\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-07-15T06:14:24-04:00\">July 15, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"Invoice factoring: How it works and why it can be useful\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/invoice-factoring\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ca\/blog\/author\/joechurchwoods\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/05\/Joe-Yard-2-crop-350x350.jpg\" class=\"entry-author__image\" alt=\"Joe Church Woods\" \/>\t\t\t\t<span class=\"entry-author__name\">Joe Church Woods<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Many businesses know the frustration of sending out invoices and hearing nothing back.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/invoice-payment-terms\/\" target=\"_blank\" rel=\"noreferrer noopener\">payment terms<\/a> typically ranging from 30 to 90 days, it can be tough to <a href=\"https:\/\/www.sage.com\/en-ca\/blog\/why-you-should-be-doing-cash-flow-analysis\/\" target=\"_blank\" rel=\"noreferrer noopener\">manage cash flow<\/a> while covering payroll, utilities, inventory, and other operational costs, all while trying to grow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is where invoice factoring can help. Instead of waiting for customers to pay, you get that cash right away.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By understanding the mechanics, costs, and strategic fit of invoice factoring, you can\u00a0determine\u00a0if this financing solution is the right move for your business.\u00a0<\/p>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li>Invoice factoring lets businesses sell unpaid invoices to a factoring company for immediate cash, improving cash flow without taking on debt or affecting credit scores. <\/li>\n\n\n\n<li>It suits B2B businesses with long payment cycles, offering benefits including faster growth, outsourced collections, and reduced administrative burden for lean finance teams. <\/li>\n\n\n\n<li>Factoring types\u2014including recourse, non-recourse, spot, and whole ledger\u2014offer flexibility, with fees typically ranging from 1\u20135% of the invoice value. <\/li>\n\n\n\n<li>Unlike invoice financing or business loans, factoring transfers collection responsibility to the factoring company, making it faster to access and easier to qualify for.<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 id=\"h-here-s-what-we-ll-cover\" class=\"wp-block-heading\"><strong>Here\u2019s what we\u2019ll cover:<\/strong><\/h3>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-invoice-factoring\" data-level=\"2\">What is invoice factoring?<\/a><\/li><li><a href=\"#h-how-does-invoice-factoring-work\" data-level=\"2\">How does invoice factoring work?<\/a><\/li><li><a href=\"#h-who-should-use-invoice-factoring\" data-level=\"2\">Who should use invoice factoring?<\/a><\/li><li><a href=\"#h-what-are-the-benefits-of-invoice-factoring\" data-level=\"2\">What are the benefits of invoice factoring?<\/a><\/li><li><a href=\"#h-pros-and-cons-of-invoice-factoring\" data-level=\"2\">Pros and cons of invoice factoring<\/a><\/li><li><a href=\"#h-what-are-the-different-types-of-invoice-factoring\" data-level=\"2\">What are the different types of invoice factoring?<\/a><\/li><li><a href=\"#h-invoice-factoring-example-how-it-works\" data-level=\"2\">Invoice factoring example: How it works<\/a><\/li><li><a href=\"#h-what-are-the-invoice-factoring-fees-and-rates\" data-level=\"2\">What are the invoice factoring fees and rates?<\/a><\/li><li><a href=\"#h-invoice-factoring-requirements-and-eligibility\" data-level=\"2\">Invoice factoring requirements and eligibility<\/a><\/li><li><a href=\"#h-invoice-factoring-versus-invoice-financing\" data-level=\"2\">Invoice factoring versus invoice financing<\/a><\/li><li><a href=\"#h-streamline-business-cash-flow-management-with-invoice-software\" data-level=\"2\">Streamline business cash flow management with invoice software<\/a><\/li><li><a href=\"#h-faqs-about-invoice-factoring\" data-level=\"2\">FAQs about invoice factoring<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-what-is-invoice-factoring\" class=\"wp-block-heading\">What is invoice factoring?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring is an arrangement where you sell your unpaid invoices to a company (called an invoice factoring service) and receive\u00a0a large portion\u00a0of the value up front, in cash. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is also sometimes referred to as\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/accounts-receivable\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounts receivable<\/a>\u00a0financing. But as\u00a0it&#8217;s\u00a0not actually a loan, your credit score stays untouched.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For small businesses in particular, invoice factoring is one of the more practical ways to&nbsp;maintain&nbsp;steady cash flow without waiting weeks or months for customers to&nbsp;settle up.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-how-does-invoice-factoring-work\" class=\"wp-block-heading\">How does invoice factoring work?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike a traditional business loan, invoice factoring\u00a0isn&#8217;t\u00a0debt.\u00a0You&#8217;re\u00a0selling an asset\u2014your outstanding invoices\u2014to a factoring company in exchange for immediate cash.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The factoring company advances you a\u00a0portion\u00a0of the invoice&#8217;s value, usually up to 90%, and takes over the job of\u00a0collecting payment from your customer.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once your customer pays, you receive the remaining balance minus the factoring fee.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The process typically works in four steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>You sell an unpaid invoice to a factoring company.<\/li>\n\n\n\n<li>They advance you a percentage of its value, often 80\u201390%.<\/li>\n\n\n\n<li>They collect payment directly from your customer.<\/li>\n\n\n\n<li>Once paid, they send you the remaining balance, minus their fee.<\/li>\n<\/ol>\n\n\n\n<h2 id=\"h-who-should-use-invoice-factoring\" class=\"wp-block-heading\">Who should use invoice factoring?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring works best for B2B businesses\u2014companies that invoice other businesses or government entities, rather than selling directly to consumers.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If your customers are other companies,&nbsp;you&#8217;re&nbsp;likely&nbsp;a good candidate.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It tends to suit businesses that:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Have payment terms of 30\u201390 days and need cash or\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-working-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">working capital<\/a>\u00a0sooner.\u00a0<\/li>\n\n\n\n<li>Are growing quickly and&nbsp;can&#8217;t&nbsp;afford to let unpaid invoices slow them down.&nbsp;<\/li>\n\n\n\n<li>Operate in sectors with long payment cycles, such as staffing, manufacturing, freight, or construction.&nbsp;<\/li>\n\n\n\n<li>Want to avoid taking on new debt or&nbsp;don&#8217;t&nbsp;yet qualify for traditional financing.&nbsp;<\/li>\n\n\n\n<li>Have reliable customers but limited credit history of their own.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring is&nbsp;generally less&nbsp;suitable for B2C businesses, those with&nbsp;very small&nbsp;invoice values, or companies whose customers have a poor payment history (as the factoring company&#8217;s approval is&nbsp;largely based&nbsp;on your customers&#8217; ability to pay).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring is increasingly mainstream.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Canadian factoring services market generated a <a href=\"https:\/\/www.grandviewresearch.com\/horizon\/outlook\/factoring-services-market\/canada\" target=\"_blank\" rel=\"noreferrer noopener\">revenue of over $36 million<\/a> in 2025 and is expected to reach over $100 million by 2033.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These figures underscore how many businesses rely on it as a legitimate, established financing tool, not just as a last resort.<\/p>\n\n\n\n<h2 id=\"h-what-are-the-benefits-of-invoice-factoring\" class=\"wp-block-heading\">What are the benefits of invoice factoring?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring has a variety of benefits, including improved cash flow, better relationships with customers, and more efficient collections.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s\u00a0why many businesses choose it:<\/p>\n\n\n\n<h3 id=\"h-faster-growth\" class=\"wp-block-heading\">Faster growth<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring gives you cash\u00a0immediately, so you can hire more people, stock up on inventory, or take advantage of a new opportunity without stressing over unpaid invoices.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the global invoice factoring market valued at an immense $2,740.47 billion in 2022 and expected to grow at an annual rate of 8.16% by 2032,\u00a0it&#8217;s\u00a0clear more companies are jumping on board to fuel their growth.<\/p>\n\n\n\n<h3 id=\"h-improved-cash-flow\" class=\"wp-block-heading\">Improved cash flow<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Getting paid up front means you can cover payroll, pay suppliers, and keep day-to-day operations running without dipping into reserves or taking on debt.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The gap between sending an invoice and receiving payment is where many businesses run into trouble and where your\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/cash-flow-statement\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow statement<\/a>\u00a0starts to look shaky.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring closes that gap entirely.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It also gives you much better visibility over your finances. When you know what&#8217;s coming in and when, budgeting and planning become significantly easier.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You&#8217;re\u00a0not making decisions based on money that might arrive next month\u2014you&#8217;re\u00a0working with cash you already have.<\/p>\n\n\n\n<h3 id=\"h-better-relationships-with-customers\" class=\"wp-block-heading\">Better relationships with customers<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Chasing overdue payments is one of the more uncomfortable parts of running a business.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It creates friction with customers\u00a0you&#8217;ve\u00a0worked hard to build relationships with and it takes time and energy away from the work that\u00a0actually matters.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When a factoring company handles collections on your behalf, that dynamic changes. Your customer interactions stay focused on the work\u2014new projects, renewals, upsells\u2014rather than payment reminders.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For businesses where long-term client relationships are central to growth,\u00a0that&#8217;s\u00a0a meaningful advantage.<\/p>\n\n\n\n<h3 id=\"h-increased-efficiency\" class=\"wp-block-heading\">Increased efficiency<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Managing accounts receivable in-house takes real time: sending reminders, following up on overdue invoices, reconciling payments, and sometimes escalating disputes.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For small businesses without a dedicated finance team, this often falls to the owner or someone who has other responsibilities.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Outsourcing that process to a factoring company frees up hours and hands those tasks to specialists whose entire job is collections.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The result is typically faster resolution of outstanding invoices and fewer accounts that slip into serious arrears, which\u00a0benefits\u00a0your cash position as much as the time savings does.<\/p>\n\n\n\n<h3 id=\"h-limited-risk\" class=\"wp-block-heading\">Limited risk<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Because invoice factoring is a sale of an asset rather than a loan, it\u00a0doesn&#8217;t\u00a0add debt to your balance sheet or affect your credit score.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There are no repayment schedules to manage, no interest charges to factor into your margins, and no risk of defaulting on a loan if a customer pays late.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With non-recourse factoring in particular, the risk of non-payment shifts&nbsp;almost entirely&nbsp;to the factoring company. If a customer&nbsp;fails to&nbsp;pay,&nbsp;you&#8217;re&nbsp;not liable for returning the advance.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That&#8217;s\u00a0a valuable protection for businesses working with\u00a0a large number of customers or entering into relationships with new clients whose payment reliability is still unproven.<\/p>\n\n\n\n<h2 id=\"h-pros-and-cons-of-invoice-factoring\" class=\"wp-block-heading\">Pros and cons of invoice factoring<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Like any financing\u00a0option, invoice factoring involves trade-offs.\u00a0Here&#8217;s\u00a0a balanced view to help you decide if\u00a0it&#8217;s\u00a0right for your business:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Pros<\/th><th>Cons<\/th><\/tr><\/thead><tbody><tr><td>Immediate cash.<\/td><td>You receive less than the full invoice value.<\/td><\/tr><tr><td>No debt added to your balance sheet.<\/td><td>Fees can add up if customers pay slowly.<\/td><\/tr><tr><td>Approval based on your customers\u2019 credit, not yours.<\/td><td>Some customers may prefer to pay you directly.<\/td><\/tr><tr><td>Collections handled for you, saving time.<\/td><td>With recourse factoring, you\u2019re liable if a customer doesn\u2019t pay.<\/td><\/tr><tr><td>Flexible\u2014factor one invoice or your whole ledger.<\/td><td>Not well-suited to B2C businesses or low-value invoices.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-what-are-the-different-types-of-invoice-factoring\" class=\"wp-block-heading\">What are the different types of invoice factoring?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are several types of invoice factoring, including recourse, non-recourse, spot, whole ledger,\u00a0disclosed, and non-notification factoring. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Each is suited to different situations.\u00a0Here&#8217;s\u00a0what to know about each one:<\/p>\n\n\n\n<h3 id=\"h-recourse-factoring\" class=\"wp-block-heading\">Recourse factoring<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With recourse factoring, if your customer\u00a0doesn&#8217;t\u00a0pay their invoice, you may have to repay the invoice factoring company for the money they advanced you, which can seem risky.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, recourse factoring usually comes with lower fees as you take more risk. So, if\u00a0you&#8217;ve\u00a0got reliable\u00a0customers\u00a0it can be a cheaper way to get cash fast.<\/p>\n\n\n\n<h3 id=\"h-non-recourse-factoring\" class=\"wp-block-heading\">Non-recourse factoring<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Non-recourse factoring shifts the collection risk to the factoring company: if your customer\u00a0doesn&#8217;t\u00a0pay,\u00a0it&#8217;s\u00a0their problem, not yours.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That peace of mind does come at a cost though, as non-recourse arrangements typically carry higher fees than recourse factoring.<\/p>\n\n\n\n<h3 id=\"h-spot-factoring\" class=\"wp-block-heading\">Spot factoring<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Spot factoring lets you sell a single invoice rather than committing your entire ledger.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s\u00a0a flexible\u00a0option\u00a0if\u00a0you&#8217;re\u00a0facing a one-off cash shortfall and\u00a0don&#8217;t\u00a0want or need an ongoing factoring arrangement.<\/p>\n\n\n\n<h3 id=\"h-whole-ledger-factoring\" class=\"wp-block-heading\">Whole ledger factoring<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Whole ledger factoring is the opposite of spot factoring\u2014you factor\u00a0all of\u00a0your invoices under a single agreement.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It makes the most sense if slow payment is a recurring issue across your customer base.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If only a handful of customers cause delays, this level of commitment\u00a0probably isn&#8217;t\u00a0necessary.<\/p>\n\n\n\n<h3 id=\"h-disclosed-factoring\" class=\"wp-block-heading\">Disclosed factoring<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With disclosed factoring, your customers are made aware of the arrangement and instructed to pay the factoring company directly.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They&#8217;ll\u00a0receive a Notice of Assignment confirming where their payment should go.\u00a0It&#8217;s\u00a0the more transparent approach and the most common.<\/p>\n\n\n\n<h3 id=\"h-non-notification-factoring\" class=\"wp-block-heading\">Non-notification factoring<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Also called confidential factoring, this keeps the arrangement private.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your customers continue making payments as normal, unaware that a factoring company is involved.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The factor\u00a0operates\u00a0quietly in the background, handling collections without any contact with your clients, which is useful if\u00a0you&#8217;d\u00a0prefer to keep the relationship with your customers entirely your own.<\/p>\n\n\n\n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Free invoice templates<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Download our free invoice templates and say goodbye to late payments.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-02691205-7c3c-4385-b8fc-5d8298355b2c\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download invoice templates<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2020\/05\/Challenge_01-1440x810.png\" class=\"single-cta__image\" alt=\"prepping tax and accountat forms in an office in Victoria Vancuver Canada\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2020\/05\/Challenge_01-1440x810.png 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n\n<h2 id=\"h-invoice-factoring-example-how-it-works\" class=\"wp-block-heading\">Invoice factoring example: How it works<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To make the numbers concrete,\u00a0here&#8217;s\u00a0a step-by-step example of how invoice factoring works in practice:\u00a0<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>You&#8217;ve\u00a0sent out a $20,000 invoice to a customer for some of your services.\u00a0<\/li>\n\n\n\n<li>You sell that invoice to a factoring company. They advance you 85% of the total amount, so you get $17,000 up front.\u00a0<\/li>\n\n\n\n<li>The invoice factoring company takes over and is now chasing down your customer for payment, so you can focus on growing your business.\u00a0<\/li>\n\n\n\n<li>The invoice factoring service charges a 6% fee for every 30 days it takes your customer to pay. Since your customer pays within 30 days,\u00a0that&#8217;s\u00a0a 6% fee on $20,000, which equals $1,200.\u00a0<\/li>\n\n\n\n<li>After your customer pays, the invoice factoring company sends you the remaining 15% of the invoice amount, which is $3,000, minus that $1,200 fee. So, you end up with $1,800.\u00a0<\/li>\n\n\n\n<li>At the end of the process, you have $18,800 from your original $20,000 invoice, and your APR is around 42.35%.\u00a0The $1,200 fee is the cost of getting that cash\u00a0immediately\u00a0rather than waiting, which could be a worthwhile trade-off for many businesses managing tight cash flow.\u00a0<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">When looking at a\u00a0past due invoice\u00a0and considering factoring,\u00a0remember:\u00a0<strong>you get cash now, and invoice factoring companies handle the rest (at a cost).\u00a0<\/strong><\/p>\n\n\n\n<h2 id=\"h-what-are-the-invoice-factoring-fees-and-rates\" class=\"wp-block-heading\">What are the invoice factoring fees and rates?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Fees typically range from 1\u20135% of the invoice value, though the exact rate depends on a few key factors:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How much cash you need.&nbsp;<\/li>\n\n\n\n<li>How reliable your customers are at paying up.&nbsp;<\/li>\n\n\n\n<li>The size of the invoices and how long&nbsp;they&#8217;ve&nbsp;been outstanding.&nbsp;<\/li>\n\n\n\n<li>Whether&nbsp;you&#8217;re&nbsp;factoring all your invoices or just a few.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You&#8217;ll&nbsp;typically see either tiered or daily rate structures.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With tiered rates, your fee increases every 10 to 30 days that the invoice remains unpaid. With daily rates, a smaller amount\u00a0accrues\u00a0each day.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, on an invoice unpaid for 42 days, a tiered rate might come to 2.5%, while a daily rate could work out to around 2.1%.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The sooner your customer pays, the less you pay.<\/p>\n\n\n\n<h3 id=\"h-are-factored-receivables-subject-to-taxes\" class=\"wp-block-heading\">Are factored receivables subject to taxes?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes, factored receivables are subject to taxes. Because invoice factoring is treated as a sale of assets rather than a loan, the income you receive is generally taxable and should be reported as revenue.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The fees charged by the factoring company may also carry tax implications of their own, so it\u2019s worth speaking to a tax professional to understand how factoring would affect your overall liability.<\/p>\n\n\n\n<h2 id=\"h-invoice-factoring-requirements-and-eligibility\" class=\"wp-block-heading\">Invoice factoring requirements and eligibility<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Unlike a traditional bank loan, invoice factoring approval is primarily based on your customers&#8217; creditworthiness, not your own.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes it accessible to newer businesses and those with limited credit history.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Most factoring companies look for:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>B2B invoices: <\/strong>invoices issued to businesses or government entities, not individual consumers.\u00a0<\/li>\n\n\n\n<li><strong>Creditworthy customers: <\/strong>since the factoring company is taking on the collection risk, your customers&#8217; payment history matters.\u00a0<\/li>\n\n\n\n<li><strong>Clean invoices:<\/strong> free of disputes, liens, or other encumbrances.\u00a0<\/li>\n\n\n\n<li><strong>Minimum sales volume:<\/strong> some providers\u00a0require\u00a0a minimum monthly volume of invoices.\u00a0<\/li>\n\n\n\n<li><strong>No existing liens on receivables: <\/strong>if another lender already has a claim on your accounts receivable, factoring may not be available to you.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The application process is typically much faster than traditional financing, with many businesses approved and funded within a few days.<\/p>\n\n\n\n<h2 id=\"h-invoice-factoring-versus-invoice-financing\" class=\"wp-block-heading\">Invoice factoring versus invoice financing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring and invoice financing are often confused, and both are sometimes mixed up with business loans.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But they all work differently, especially when it comes to who handles collections and what happens to your balance sheet.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With invoice financing, your invoices act as collateral for a loan or line of credit. You still chase down payments yourself, and once your customers pay, you repay the lender, plus fees and interest.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s\u00a0a quick comparison:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><\/th><th>Invoice factoring<\/th><th>Invoice financing<\/th><th>Business loan<\/th><\/tr><\/thead><tbody><tr><td><strong>Do you take on debt?<\/strong><\/td><td>No<\/td><td>Yes<\/td><td>Yes<\/td><\/tr><tr><td><strong>Who chases payment?<\/strong><\/td><td>The factoring company<\/td><td>You<\/td><td>You<\/td><\/tr><tr><td><strong>Does it affect credit score?<\/strong><\/td><td>No<\/td><td>Maybe<\/td><td>Yes<\/td><\/tr><tr><td><strong>Approval based on<\/strong><\/td><td>Your customers\u2019 credit<\/td><td>Your invoice quality<\/td><td>Your credit history<\/td><\/tr><tr><td><strong>Typical cost<\/strong><\/td><td>1-5% of invoice value<\/td><td>Varies<\/td><td>Interest rate + fees<\/td><\/tr><tr><td><strong>How fast is funding?<\/strong><\/td><td>1-3 days<\/td><td>1-5 days<\/td><td>Weeks<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"h-streamline-business-cash-flow-management-with-invoice-software\" class=\"wp-block-heading\">Streamline business cash flow management with invoice software<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Invoice factoring can be\u00a0a good way\u00a0to help keep your business in the black.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But&nbsp;it&#8217;s&nbsp;also important to consider your overall invoicing processes, making sure they are as effective as possible in supporting your cash flow.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By investing in smart\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/invoicing\/\" target=\"_blank\" rel=\"noreferrer noopener\">invoicing software<\/a>, you can automate and simplify how you manage invoices, from invoice creation right through to tracking outstanding and incoming payments:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No long waits for payments.<\/strong> Sage software speeds up the process with automatic reminders and faster payment options.\u00a0<\/li>\n\n\n\n<li><strong>No manual tracking or errors. <\/strong>The system streamlines invoicing,\u00a0eliminates\u00a0manual tracking, and minimizes errors, saving you time and cutting costs.\u00a0<\/li>\n\n\n\n<li><strong>No time-consuming manual invoicing.<\/strong> Sage invoicing software automatically generates and sends\u00a0accurate\u00a0invoices, so you get paid easily.\u00a0<\/li>\n\n\n\n<li><strong>Fewer disputes and delays.<\/strong>\u00a0<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-an-electronic-invoice\/\" target=\"_blank\" rel=\"noreferrer noopener\">E-invoicing<\/a>\u00a0ensures everything is correct, boosting your credibility.\u00a0<\/li>\n\n\n\n<li><strong>Minimize cash flow struggles. <\/strong>Keep your cash flow steady with on-time invoices and clear payment terms.\u00a0<\/li>\n\n\n\n<li><strong>Manage invoices from anywhere<\/strong>, whether\u00a0you&#8217;re\u00a0at your desk or on the go.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-faqs-about-invoice-factoring\" class=\"wp-block-heading\">FAQs about invoice factoring<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1784109473837\"><strong class=\"schema-faq-question\"><strong>Is invoice factoring regulated?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">Yes. Invoice factoring companies are subject to certain regulations.\u00a0They&#8217;ve\u00a0got to follow federal and provincial rules to ensure fair play.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784109484553\"><strong class=\"schema-faq-question\"><strong>What are the disadvantages of invoice factoring?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">You&#8217;re\u00a0giving up a chunk of your invoice value. Plus, you might have to deal with fees and potential strain on customer relationships if they\u00a0don&#8217;t\u00a0like dealing with a third party.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784109507947\"><strong class=\"schema-faq-question\"><strong>What is the difference between invoice factoring and invoice discounting?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">Invoice factoring means the factoring company handles collections and takes over the invoice. Invoice discounting lets you keep control of collections, but\u00a0you&#8217;re\u00a0still getting an advance on your invoices.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784109526962\"><strong class=\"schema-faq-question\"><strong>When should a business use invoice factoring?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">If you need cash fast and\u00a0can&#8217;t\u00a0wait for your customers to pay, invoice factoring could be a good\u00a0option\u00a0to consider.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1784109544189\"><strong class=\"schema-faq-question\"><strong>Is invoice factoring the same as a loan?<\/strong>\u00a0<\/strong> <p class=\"schema-faq-answer\">No. Invoice factoring is the sale of an asset\u2014your invoice\u2014not a loan. That means it\u00a0doesn&#8217;t\u00a0add debt to your balance sheet or affect your credit score the way traditional borrowing would.\u00a0<\/p> <\/div> <\/div>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p class=\"cta-content__title\">Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8949a954-88b2-43bb-8b8a-77c53eb34350\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1073797282-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/accounting-101\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tcash flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/how-to-grow-your-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\thow to grow your business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/small-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tsmall business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-15044 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-ai tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-payment-processing tag-small-business business_type-small-business business_type-medium-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1214\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original-1214x810.jpeg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original-684x384.jpeg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original-768x512.jpeg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShootLDN_Jul2022_ProfSvcs_0726-original-1214x810.jpeg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-16T05:44:56-04:00\">September 16, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/what-is-ap-automation\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tAP automation: How it works, key benefits, and why your business needs it\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tLearn how AI-powered automation works and how your invoices flow seamlessly from capture to payment, giving you real-time visibility and faster decision-making. \t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-15025 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-expenses tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/how-to-track-business-expenses\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-939019528-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-15T12:14:22-04:00\">September 15, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">14 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to keep track of business expenses\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-15010 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/deposits-in-transit-bank-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2025\/10\/fund-accounting-for-nonprofits.jpg 1200w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-15T06:42:38-04:00\">September 15, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat are deposits in transit and why are they included in a bank reconciliation?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-12866 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-continuity tag-business-finances tag-cash-flow tag-cfo tag-how-to-grow-your-business tag-making-financial-decisions tag-midsized-business tag-staying-competitive business_type-small-business business_type-medium-business industry-healthcare\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/guide-to-healthcare-financial-management\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/05\/GettyImages-740534235-768x432-1-684x384.jpg\" class=\"card-post__image\" alt=\"women in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/05\/GettyImages-740534235-768x432-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/05\/GettyImages-740534235-768x432-1.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2023\/05\/GettyImages-740534235-768x432-1.jpg 768w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-14T06:06:18-04:00\">September 14, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is healthcare financial management and why is it important?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-14984 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-business-continuity tag-business-finances tag-cash-flow tag-small-business business_type-small-business business_type-medium-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/is-accounts-receivable-an-asset\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1004712242-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1004712242-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1004712242-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1004712242-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-09-14T03:31:17-04:00\">September 14, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tIs accounts receivable an asset or liability? Why does it matter?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn what invoice factoring is, how it works, and what the benefits of this approach are. This guide covers all the basics and will help you figure out if invoice factoring might be a smart move for your business.<\/p>\n","protected":false},"author":1847,"featured_media":8266,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_yoast_wpseo_is_cornerstone":"","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","_yoast_wpseo_twitter-image-id":"","_yoast_wpseo_schema_page_type":"","_yoast_wpseo_schema_article_type":"","_sage_video":false,"_yoast_wpseo_focuskeywords":"[{\"keyword\":\"factoring invoices\",\"score\":81},{\"keyword\":\"invoice factoring companies\",\"score\":70},{\"keyword\":\"invoice factoring rates\",\"score\":61},{\"keyword\":\"what is invoice factoring\",\"score\":81}]","_yoast_wpseo_keywordsynonyms":"[\"factoring invoices\",\"\",\"\",\"\",\"\"]","_yoast_wpseo_primary_category":"7","sage_membership_post_content_type":"article","sage_membership_post_featured_video_id":"","sage_membership_post_video_type":"trailer","sage_membership_post_featured_video_duration":"","post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[7],"tags":[162,271,265,267],"business_type":[3,99],"lilypad":[],"context":[],"industry":[],"persona":[75,73,83],"imagine_tag":[35,67],"coauthors":[460],"class_list":["post-14733","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","tag-cash-flow","tag-how-to-grow-your-business","tag-small-business","business_type-small-business","business_type-medium-business"],"sage_meta":{"region":"en-ca","author_name":"Joe Church Woods","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1305268048.jpg","imagine_tags":{"35":"accounting software","67":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Canada English","distributor_original_site_url":"https:\/\/www.sage.com\/en-ca\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/users\/1847"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=14733"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/14733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/8266"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=14733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=14733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=14733"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=14733"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=14733"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=14733"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=14733"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=14733"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=14733"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=14733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}