WFY’26: Canada’s factoring market reaches CAD3.9bn as banks deepen receivables appetite

Canada’s factoring and supply chain finance market is moving further into the mainstream as banks increase their appetite for receivables transactions and larger corporates use non-recourse structures more strategically. In this country report, Ziad Mawassi, Managing Director & Head of Supply Chain Finance at National Bank of Canada, examines how the market is evolving from a perceived funding option of last resort into a broader working-capital and balance-sheet management tool.

The article included in the World Factoring Yearbook 2026 (WFY’26) explores a Canadian market where factoring volumes reached an estimated CAD3.9bn in 2025, supported by stronger bank participation, increased use of non-recourse and export factoring, and growing corporate interest in receivables finance alongside conventional revolving credit facilities. It also considers the role of credit insurance, technology, specialist non-bank providers and changing regulatory requirements.

Below is an excerpt from his article.

In 2025 and now in 2026, factoring and supply chain finance in Canada has reached an important inflection point. Historically perceived as a solution of last resort and developing quietly in the shadow of traditional revolving credit facilities, receivables finance is becoming increasingly mainstream. Canadian banks have shown a renewed and growing appetite for factoring transactions, particularly in the mid-market, national accounts and capital markets segments. While liquidity needs remain a key driver, many corporates are now deliberately using non-recourse factoring to achieve off-balance-sheet treatment, strengthen balance sheets and ultimately improve pricing and terms on more conventional bank facilities.

Volumes across the industry continued to increase in 2025, reaching some of the highest levels observed to date, while portfolio diversification across industries improved. Despite a challenging macroeconomic and geopolitical environment, loss levels have remained well controlled, supported by disciplined underwriting, close client relationships and the frequent use of credit insurance. As a result, factoring in Canada is increasingly viewed as a complementary and strategic working capital tool rather than a distress solution.

Factoring volumes in Canada continued to grow in 2025, supported by strong bank participation and renewed interest from larger corporates and reached an estimative volume of CAD 3,900m. Growth has been particularly notable in non-recourse domestic and export factoring, as well as in supply chain finance solutions such as reverse factoring. Factoring is increasingly used as a complementary product alongside traditional credit facilities rather than as a standalone source of liquidity.

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To read the whole article and 50 other specialist articles and country market reviews, order World Factoring Yearbook 2026 here.