Direct factoring, not a conventional loan
Its Canadian factoring page states that eCapital advances funds on approved invoices and collects customer payments. This is a direct factoring offering.
eCapital’s Canadian product page describes a direct purchase of invoices: the business receives an advance and customers pay eCapital. It is classified here as a factor, not a conventional lender.
Source: eCapital: official product information ↗
Factoring is a receivables transaction, not a conventional business loan. Confirm the contract and the relevant Canadian entity.
Our comparison analysis
The invoice advance, reserve and final settlement
Trace one invoice from submission to the release of the final reserve. Compare the date cash arrives, deductions at each stage and the treatment of disputes. Ask whether minimum volume, customer concentration or contract notice periods affect the economics. A claim that funding is tied to receivables does not establish that your business has no continuing obligations. Review recourse, warranties and any existing bank assignment of invoices before changing the payment instructions customers receive.
Worked planning example
Illustrative: on a CAD 25,000 invoice, an assumed 80% advance provides CAD 20,000 initially. If total agreed fees were CAD 750 and the customer paid in full, the final balance would be CAD 4,250. This is not eCapital pricing.
Hypothetical assumptions, not a provider quote or an underwriting rule.
Questions to put in writing
- Which disputes or non-payment events require repayment?
- How do fees change when the debtor pays later?
- When is the reserve released after termination?
Request a dated proposal identifying the contracting lender, lessor or factor, every compulsory charge, the payment schedule and the conditions that remain before funding.
Official sources and scope
Verification means the linked public information supports the role and offering described on the check date. It is not a regulatory, solvency or suitability audit. No confidential credit criteria, approval odds or commercial relationship are inferred. Confirm geography and the exact legal entity for your transaction.