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Revolving capital · Up to $3M

Working capital that doesn't punish growth.

A revolving line of credit up to $3M for Canadian businesses ready to outgrow factoring, stretch payroll, and stop bleeding margin on every invoice.

7–15 days
Funded
$3M
Revolving ceiling
All sectors
Trucking, mfg, distribution
The product

One product. Two underwriting tracks. Built around your business.

Credit limit
$25K – $3M
Interest rate
Prime + 12%
Closing cost
3.8% one-time
Structure
Revolving
Term
Ongoing, reviewed annually
Min. time in business
12 months
Funding timeline
7–15 business days

Draw what you need, pay interest only on what you use, and redraw anytime. No factoring contracts. No discount fees per invoice. No reserve holdbacks.

The math

Factoring is a great on-ramp. A LOC is the next gear.

Factoring made sense when banks wouldn't touch you. If you've been in business 12+ months and your customers pay within 90 days, a line of credit can cut your effective cost of capital in half — or better.

Dimension
Factoring
Line of Credit
Cost structure
1.5% – 5% per invoice cycle
Prime + 12% on drawn balance
Effective annual rate
18% – 60%
~17%*
Customer involvement
Factor contacts your customers
Zero — invisible to customers
Contract length
1–3 year locked contracts
Annual review, no lock-in
What's financed
Only approved invoices
Any business need
Brand impact
Customers see factoring activity
Invisible to customers & vendors

*Based on current Canadian Prime rate. See calculator below for your specific scenario.

Already locked into a factoring contract?

Already have a factoring company? We can move you.

A Nex advisor can structure a buyout — replacing your existing factoring facility with a Nex line of credit, or transferring you to a factoring partner with better rates. We review your current contract for termination clauses, handle the notice paperwork with your existing factor, and coordinate the transition so there's no break in your funding cycle.

1
Contract review
We read your factoring agreement and identify termination terms, notice periods, and any exit penalties.
2
Buyout structure
A Nex LOC pays out your existing factor's balance at closing — or we shop a competing factoring partner with a lower rate.
3
Seamless transition
We coordinate the wind-down with your current factor while standing up your new facility. No funding gap, no scrambling for working capital mid-month.
Talk to an advisor about your contract
The money shot

See exactly how much factoring is costing you.

Enter your real numbers. We'll show you what you're paying in factoring fees this year — and what the same business would cost on a Nex LOC.

Your numbers
$250,000
2.5%
45 days
4.95%
LOCKED — NEX LOC TERMS
LOC margin+ 12.00%
One-time closing cost3.80%
Year-one savings
$0
And $0 every year after.
FactoringNex LOC Y1Y2+
Annual financing cost$0$0$0
One-time closing—$0—
Total annual cost$0$0$0
Effective annual rate0%0%0%
Why growing businesses upgrade

Six reasons businesses graduate from factoring to a line of credit.

01

Your customers stay yours

Factors call your customers, send notices, verify invoices, and chase payment in your name. With a LOC, your customer relationships stay invisible to your lender.

02

Pay interest, not invoice fees

Factoring charges a discount fee on every invoice you fund — whether the customer pays in 5 days or 50. A LOC charges interest only on what you use, only for the days you use it.

03

Use it for anything

Factoring funds invoices. A LOC funds your business. Payroll, fuel, supplier prepays, insurance, slow-month bridges — same facility, infinite use cases.

04

No reserves held back

Factors hold back 10–20% of every invoice as reserve. That's your cash, parked. A LOC advances against business strength — no holdbacks, no waiting.

05

Annual review, no lock-in

Factoring contracts often lock you in 1–3 years with steep termination fees. A LOC is reviewed annually based on your performance. Outgrow it — refinance. Don't need it — pause draws.

06

Build banking credibility

Factoring rarely builds traditional credit history. A revolving LOC, used responsibly, strengthens your application for senior bank facilities down the road.

Eligibility

Two underwriting tracks. Built around your stage.

Entry tier
$250K

Lines up to $250,000

Streamlined underwriting. Fewer documents. Built for established small businesses.

Minimum requirements
  • Canadian incorporated or registered sole prop
  • 12+ months in business with verifiable history
  • Personal guarantor with clean trade history
  • Personal credit 600+ (Equifax ERS)
  • Verifiable revenue via banking connection
  • Eligible industry
What you'll submit
  • Online application
  • Digital banking connection (~2 min)
  • CRA Level 1 access (if outstanding balances)
  • Short-term loan / MCA disclosure (if any)
Extended tier
$3M

Lines $250,001 – $3M

For established businesses with audited financials and substantial collateral.

Minimum requirements
  • Canadian incorporated business
  • 12+ months in business
  • Working capital cycle with collateral (AR, equipment, etc.)
  • 3 yrs CPA-prepared financials
  • Most recent interim financials
  • No minimum personal credit score
What you'll submit
  • Online application + transaction summary
  • Personal Net Worth statements (each guarantor)
  • Corporate org chart (beneficial ownership)
  • 3 yrs CPA financials + interim
  • Aging AR/AP report · Inventory listings
  • Banking + CRA + accounting software access

Sound like a lot for the extended tier? It is — because we're underwriting up to $3M of revolving credit. Your Nex advisor walks you through every document.

How it works

Four steps. About 7 business days.

01
Day 0

Apply online

Complete the application. About 15 minutes. We'll know immediately if you fit the program.

02
Day 1–2

Connect & submit

Connect business banking and authorize CRA access. Upload financials if applying for $250K+.

03
Day 3–7

Underwriting review

Credit team reviews your file and issues a term sheet. Direct line to your Nex advisor throughout.

04
Day 7–15

Funding

Sign your agreement. Closing cost deducted from first draw. Line is live. Draw same day.

FAQ

Questions you should be asking.

No. A Nex LOC sits between you and your lender. There is no notice of assignment sent to your customers, no factor calling to verify invoices, no third party in your customer relationships. As far as your customers and vendors are concerned, nothing has changed.

Yes. If approved, your LOC proceeds will typically be used to pay out and terminate any existing short-term loans or MCAs. Factoring contracts are reviewed case-by-case depending on remaining term and termination clauses. Your Nex advisor will walk you through the transition.

The closing cost (3.8%) is a one-time fee deducted from your initial draw — think of it as the cost to open the facility. The interest rate (Prime + 12%) is what you pay on whatever balance you have drawn, calculated daily and charged monthly. Draw and repay quickly — interest cost stays low.

The LOC is yours, not tied to specific invoices. If a customer pays slowly, you continue making interest payments and your line stays open. If a customer defaults, your business absorbs the loss — same as today. The LOC doesn't change your AR risk; it gives you working capital flexibility.

For lines up to $250K, 600 is the guideline — but it's a guideline, not a hard cut. If you're close (580–599) with strong business fundamentals or clear explanations, we'll still take a look. For lines above $250K, there's no minimum personal credit score.

Each year, your facility is reviewed based on your performance, financials, and continued eligibility. Most clients see their limit increased or held steady. Limits can be reduced if business performance materially deteriorates, but you'd receive notice and have time to adjust. We are not in the business of pulling lines from performing accounts.

Apply for your Nex Line of Credit.

Takes about 15 minutes. You can save and return if needed. We'll respond within one business day.

Start LOC application → Book 15-min advisor call

Or call (855) 900-0639