Month: January 2025

Step-by-Step Guide to ACH Payments for Canadian Companies

Posted on by Ruslan Nikolaev

Are you looking to streamline your business’s payment processes and reduce transaction costs? ACH payments offer a secure, efficient, and cost-effective solution for Canadian businesses. In this step-by-step guide, we’ll walk you through the process of setting up and making ACH payments, helping you optimize your financial operations.

By understanding the benefits of ACH payments and following our detailed instructions, you can take advantage of this powerful payment method and improve your business’s financial efficiency. Let’s dive in and explore how ACH payments can transform the way you manage your transactions.

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What is an ACH Payment in Canada?

ACH (Automated Clearing House) payment is an electronic funds transfer system that processes payments between banks. It is commonly used for direct deposits, bill payments, and other types of financial transactions. ACH payments are processed in batches and can be more cost-effective than wire transfers.

Why Use ACH Payments for Your Business?

ACH payments provide a secure, efficient, and cost-effective way for businesses to manage transactions. They offer lower processing fees compared to credit card payments and enable businesses to streamline their accounts payable processes. Additionally, ACH payments are ideal for recurring payments, reducing the need for manual intervention. But not every financial service provider offers ACH (learn more about ACH vs EFT in this article.)

How to Make an ACH Payment as a Canadian Business

Step 1: Set Up Your ACH Account

  • Contact your bank to set up an ACH account, ensuring it supports ACH transfers.
  • Provide necessary business documentation and verify your identity.
  • Your bank will guide you through the setup process and provide the required forms.

Step 2: Gather Required Information

  • Obtain the recipient’s banking details, including their bank account number and routing number.
  • Ensure you have the recipient’s full name and address as it appears on their bank account.
  • Collect any additional information required by your bank, such as the recipient’s SWIFT code for international transfers.

Step 3: Initiate the ACH Payment

  • Log into your bank’s online portal or use their ACH payment service.
  • Enter the recipient’s banking details, the payment amount, and the payment date.
  • Review the information for accuracy and submit the payment request.
  • Confirm the payment through your bank’s security verification process.

Step 4: Monitor the Payment Status

  • Track the status of your ACH payment through your bank’s online portal.
  • ACH payments typically take 1-3 business days to process, but this can vary based on your bank and the recipient’s bank.
  • Ensure that the payment has been successfully completed and received by the recipient.

Step 5: Record the Transaction

  • Keep a record of the ACH payment for your financial records.
  • Update your accounting software or accounts payable platform with the transaction details.
  • Monitor your bank statements to verify the payment has cleared.

Tips on Ensuring Successful ACH Payments

1. Verify Recipient Information

  • Double-check recipient details: Carefully review all recipient information before initiating the ACH payment to avoid errors and delays in processing.

2. Schedule Payments in Advance

  • Plan ahead: To ensure your ACH payments are processed on the desired date, schedule them in advance, taking into account the processing time required by your bank.

3. Use Secure Banking Platforms

  • Prioritize security: Always use secure online banking platforms to protect your financial information and ensure the safety of your transactions.

Frequently Asked Questions

The steps include setting up an ACH account, gathering recipient information, initiating the payment, monitoring the payment status, and recording the transaction.




Yes, Canadian businesses must comply with regulations set by Payments Canada, including obtaining proper authorization from the recipient.

If you are looking for a modern solution for ACH payments in Canada, look no further than Float. Otherwise, many major banks in Canada offer ACH payment services, including RBC, TD, and Scotiabank, among others, however, additional fees may apply.

Float is Free to use on our Essentials plan, where you will be able to issue unlimited virtual CAD/USD cards, earn 4% interest on deposits, reimburse employees and pay vendor bills. If you need more sophisticated functionality, like over 20 physical cards, Netsuite integration, or an API solution, you will have to consider our paid Professional and Enterprise plans.

Unlike traditional cards that get you to spend more, Float is the only corporate card in the world that helps businesses spend less. Through a combination of financial rewards like our 1% cashback, 4% interest on deposits, no FX fees with our USD cards and time savings of at least 8 hours per employee Float’s customers on average save 7% on their spend.

Best way to manage ACH payments is with Float

Using our bill pay solutions and accounts payable platform, Canadian businesses can streamline their ACH payment processes, reduce errors, and ensure timely payments. Our platform offers seamless integration with your existing financial systems, making it easier to manage accounts payable and stay on top of your business finances.

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By following this step-by-step guide, you can confidently navigate the world of ACH payments and unlock the benefits they offer for your Canadian business. As you embark on this journey, remember that we’re here to support you every step of the way. Get started for free with our user-friendly platform and let us help you streamline your payment processes, saving you time and money.

Understanding Credit Cards, Charge Cards and Secured Cards

Posted on by Ruslan Nikolaev

When it comes to managing your business expenses, choosing the right type of card can make a significant difference in your financial strategy. Understanding the key differences between corporate credit cards, charge cards, and secured cards is essential for making an informed decision that aligns with your company’s needs and goals.

In this article, we’ll dive into the unique features, benefits, and drawbacks of each card type, helping you determine which option is the best fit for your business. By the end, you’ll have a clear understanding of how these cards work and how they can impact your company’s financial health.

Get 10x Higher Charge Card Limit with Float

Canada’s only modern USD and CAD Visa and Mastercard Charge Card for businesses — plus cashback and average savings of 7%.

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What are credit cards?

Credit cards extend a line of credit up to a preset limit, allowing you to make purchases and carry a balance from month to month. Interest charges apply to any outstanding balance not paid in full by the due date. Minimum payments are calculated as a percentage of the total balance, making it easier to manage cash flow.

There is a wide range of credit card options available, catering to various credit scores and offering rewards such as cash back, points, or discounts. Responsible use of a credit card can help build your business’s credit history and improve its credit scores over time.

How do charge cards work?

Charge cards require full payment of the balance at the end of each billing cycle, typically on a monthly basis. Unlike credit cards, charge cards usually don’t have a preset spending limit, providing more flexibility for business expenses. However, failing to pay off the balance in full can result in substantial fees and penalties.

Approval for a charge card generally requires good to excellent credit. These cards often come with high annual fees but offer premium rewards and perks in return. Differences between charge cards and credit cards include payment terms and the impact on credit utilization.

What are secured credit cards?

Secured credit cards require a security deposit that serves as collateral and usually determines the credit limit. These cards are designed for businesses looking to build or rebuild their credit. Charge card issuers often conduct automatic reviews to potentially upgrade users to an unsecured card based on their payment history.

The security deposit is refundable if you upgrade to an unsecured card or close the account in good standing. Secured cards typically have lower credit limits compared to unsecured cards. All account activity is reported to credit bureaus, making responsible use crucial for improving your business’s credit profile.

Comparing credit cards, charge cards, and secured cards

Credit cards are the most common and accessible option, with a variety of choices for different credit profiles. Charge cards are less widely available and target businesses with excellent credit. Secured cards are a good choice for companies with limited or poor credit history.

When selecting a card, consider factors such as fees, rewards, credit card comparison, and your business’s spending habits. The impact a card has on your credit score can vary based on its terms and how you use it.

Get 10x Higher Charge Card Limit with Float

Canada’s only modern USD and CAD Visa and Mastercard Charge Card for businesses — plus cashback and average savings of 7%.

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How to choose the right card for your needs

To choose the right card for your business, start by assessing your credit score and history to determine which types of cards you may qualify for. Evaluate your spending habits and financial goals to find a card with features and benefits that suit your needs.

Compare fees, interest rates, rewards programs and other perks across different card offers. Consider whether you can responsibly manage payments and avoid carrying a balance. Carefully read the card’s terms and conditions, and select a product that aligns with your business’s needs and financial situation. You may also want to consider how these cards fit into a larger corporate card program, to centralize your business spending and standardize reimbursements.

Why Coinberry switched from AMEX

“When we were using AMEX, it was incredibly time-consuming to fund our cards. It often put our ad campaigns on pause & we’d lose users every day.”

Jerry Lin
VP Finance

Read the story

Float’s Charge Card — Best Solution for Canadian Businesses Looking to Grow

Float’s Charge Card offers a tailored solution for Canadian businesses seeking to streamline their expense management and boost their financial performance. With flexible spending limits, powerful budgeting tools, and seamless integration with your existing accounting software, Float’s Charge Card empowers you to take control of your company’s finances and fuel its growth.

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If you’re ready to take your business to the next level with a smarter, more efficient expense management solution, we’re here to help. Join the countless Canadian companies who have already discovered the power of our innovative platform and get started for free today. Let us show you how easy it can be to optimize your finances and fuel your company’s growth.

We’ve Raised $70 Million to Fix Canada’s Business Banking Problem

Posted on by Rob Khazzam

Float launched its first product in 2021, a single corporate card and a simple mission: cut through the red tape and give businesses the financial tools they need to move faster. The “big five” banks were notorious for underserving non-enterprise companies with high costs, low earning rates and some of the worst support experiences—all on top of antiqued or virtually non-existent software. Canadian businesses were—and still are—finding success despite their financial institutions.

Since then, we’ve kept that mission but expanded our financial platform with products to automate accounts payable, make reimbursements frictionless and surface real-time insights into company spending. Float now also offers virtual and physical cards in both CAD and USD, high-yield accounts and next-day fund transfers and payments, providing faster, more flexible alternatives to traditional banking services. Today, more than 4,000 businesses use Float to manage team spend, earn high-interest on cash reserves and save days of manual reconciliation.

But our ambition for Float is about more than a growing suite of products.

Over the past four years, our customers have told us that Float has revolutionized the way they do finance. Made their team’s work smoother and more efficient. Empowered employees and removed roadblocks. Matched their speed and sense of purpose. How they will be loyal to Float forever because it’s given them back hours they used to spend on tedious manual processes, time they can now put back into their business. As the son of a small business owner myself, I couldn’t be prouder and more grateful to be working alongside these owners, operators and finance leaders—the true backbone of our country.

And so today, I’m beyond excited to announce that we’re set to expand once again, backed by globally-recognized investors. Growth Equity at Goldman Sachs Alternatives is leading a $70 million Series B investment round to help Float continue building business finance products already trusted by Canadian brands of every size.

We have big plans. Funds raised in this round will go toward accelerating product expansion, continuing to attract top talent and expanding coast-to-coast, all driving toward that original mission of empowering Canadian businesses with the financial tools they need and deserve. This investment in Float is an investment in Canada.

But let me be clear about something.

Canada is at a tipping point. Our economic and social prosperity are at stake. Playing it safe is no longer an option. As a nation, we must aim higher by fostering innovation and removing barriers that make it harder to build businesses in Canada. We have to stop resting on the laurels of legacy institutions that no longer serve everyone.

At Float, we’re committed to being part of the solution by providing Canadian companies with greater access to capital, smarter automation, modern financial tools and expert support (that’s available more than just 9 to 5). We’re meeting businesses where they are and helping them get where they want to go: a stronger, more prosperous future.

For them, for Canada, for all of us.

Float Financial Announces $70 Million Investment Round Led by Growth Equity at Goldman Sachs Alternatives to Build Canada’s Most Complete Business Finance Solution

Posted on by Dana Krook
  • Growth Equity at Goldman Sachs Alternatives leads this funding round of over CAD$70M, joined by other prominent investors including OMERS Ventures, FJ Labs, Garage Capital and Teralys.
  • With the CAD$50M credit facility announced in February 2024—bringing total funding to over CAD$120M in the past year—this investment highlights Float Financial’s significant potential despite economic uncertainty.
  • Float will use the money to accelerate its product expansion, continue to attract top talent and expand its leadership in the Canadian market coast-to-coast.

TORONTO, Jan 13, 2024 — Float Financial, a business finance platform for Canadian businesses, today announced it has signed a CAD $70 million Series B financing round, which brings its total funds raised in the last 12 months to $120 million. The round is led by Growth Equity at Goldman Sachs Alternatives, with participation from OMERS Ventures, FJ Labs, Teralys and existing investor Garage Capital. Float’s range of business finance products is already trusted by big Canadian brands like Jane Software, LumiQ, Knix and more.

Float brings much-needed change to how Canadian businesses of all sizes spend, save and grow their money with a combination of innovative financial services and software. Since their November 2021 Series A, Float has seen 45x growth in total payment volume (TPV), 50x revenue, 30x increase in assets under management (AUM) and 140x expansion in credit issuance—all while achieving top quartile performance in capital efficiency. Float’s Series B investment round demonstrates its significant potential, with a higher valuation compared to its Series A, despite macroeconomic uncertainty.

In 2024, Float significantly expanded its expense management software and corporate cards offering to streamline how Canadian businesses manage their finances. With the addition of features to automate accounts payable, make reimbursements frictionless and surface real-time insights into company spending, Float helps businesses simplify their financial operations. Float now also offers virtual and physical cards in both CAD and USD, high-yield accounts and next-day fund transfers and payments, providing faster, more flexible alternatives to traditional banking services. The company plans to leverage the new capital to further broaden its product suite, attract top talent and expand its leadership in the Canadian market.

“Our financial system needs to match the speed and ambition of Canadian businesses if we want to thrive locally and compete globally. Float’s mission is simple: cut through the red tape and give businesses the financial tools they need to move faster. To access more opportunities. And to do it all easily, with the click of a button,” said Rob Khazzam, CEO of Float. “Today, 4,000 businesses use Float to manage team spend, earn high-interest on cash reserves and save days of manual reconciliation. This investment will fuel our mission to support thousands more with the financial solutions they need to lead Canada into the future.”

“Float’s impressive growth so early on is a testament to its Canadian focus, customer-centric platform and deeply committed team,” said Clare Greenan, an investor with Growth Equity at Goldman Sachs Alternatives. “We are thrilled to support Float in its next phase of expansion, as it makes innovative business finance solutions more accessible to Canadian businesses.”

In February 2024, Float secured a $50 million credit facility in partnership with Silicon Valley Bank (SVB), a division of First Citizens Bank. Existing venture capital and institutional shareholders from Series A, including Golden Ventures, Susa Ventures, and Tiger Global, demonstrated their confidence in Float’s future by remaining fully invested.

About Float Financial

Float is complete business finance for Canadian companies. We offer modern financial services, powerful software and industry-leading support designed for every company and stage of growth. Our integrated suite of products—including corporate cards, bill pay, expense management and high-yield accounts—gives finance teams everything they need to manage spending and cash flow efficiently, so they can keep pace with the demands of their business. To learn more, visit floatfinancial.com. 

About Growth Equity at Goldman Sachs Alternatives

Goldman Sachs (NYSE: GS) is one of the leading investors in alternatives globally, with over $500 billion in assets and more than 30 years of experience. The business invests in the full spectrum of alternatives including private equity, growth equity, private credit, real estate, infrastructure, sustainability, and hedge funds. Clients access these solutions through direct strategies, customized partnerships, and open-architecture programs.

The business is driven by a focus on partnership and shared success with its clients, seeking to deliver long-term investment performance drawing on its global network and deep expertise across industries and markets.

The alternative investments platform is part of Goldman Sachs Asset Management, which delivers investment and advisory services across public and private markets for the world’s leading institutions, financial advisors and individuals. Goldman Sachs has more than $3.1 trillion in assets under supervision globally as of September 30, 2024.

Since 2003, Growth Equity at Goldman Sachs Alternatives has invested over $13 billion in companies led by visionary founders and CEOs. The team focuses on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare.

Media Contacts

Dana Krook
Content & Communications Lead
dana.krook@floatfinancial.com

416-992-7471