Guide
Every day a receivable is outstanding is a day of free credit to your customer. Shortening that time is often the cheapest way to improve cash flow.
✓ Checking what you qualify for does not affect your credit score.
Short answer: Agree payment terms in writing before work starts, ask for deposits and progress payments on larger jobs, invoice the day work is done with purchase order numbers, accept EFT, Interac e-Transfer and cards, and follow up before, on and after the due date. Use financing only for the gap that remains.
Key facts
Related: Practical Business Funding Guides for Canadian Owners · Business Funding Requirements in Canada · Documents Needed for Business Funding in Canada · Business Funding Affordability Calculator (CAD) · Funding Readiness Score Canada: Free 30-Second Check
Every day a receivable is outstanding is a day of free credit to your customer. Shortening that time is often the cheapest way to improve cash flow.
Agree on payment terms in writing before work starts. Include due dates, accepted payment methods and late fees.
For larger jobs, ask for a deposit and progress payments rather than one final invoice.
Send invoices the day work is completed, with purchase order numbers and contact details. Errors are the most common excuse for late payment.
Use electronic invoicing so the date sent is clear.
Accept electronic funds transfer, Interac e-Transfer and cards. Every extra step delays payment.
Include payment details on every invoice.
Send a friendly reminder before the due date, a firm reminder on the day and a call shortly after. Consistency matters more than tone.
Track average days to pay by customer and act on the slowest.
For large invoices from creditworthy customers, invoice factoring can turn a receivable into cash. For general gaps, revenue-based funding avoids involving customers.
Neither replaces good collection habits.
Guides like this one are general education written for Canadian owners. They are most useful when you turn them into a few concrete actions with dates, and revisit them when your numbers change. If funding is part of your plan, the same preparation that makes the plan work, clear numbers and a specific purpose, also makes an application faster and stronger.
Merchant Fund Express reviews Canadian businesses in every province and territory. If you would like a specific answer for your business rather than general guidance, send a signed application and your last four months of business bank statements, or call (305) 384-8391 first to ask a question.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
It is general education. Your file and agreements are specific, so read them and ask questions.
Gather four months of statements and write what the money is for in one sentence.
Yes. Apply once and the file is matched to the structure that fits.
Educational information only. It is not legal, tax or accounting advice.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
