We all know that 98% of all employer businesses in Canada are small businesses—but did you know that small businesses contribute over 50% of Canada’s GDP and employ more than 70% of the private labour force?
These numbers illustrate the vital role small businesses play in driving economic growth, creating jobs, and fostering innovation.
This Small Business Week, we want to shine a spotlight on UFT Canada, one of our valued former clients, whose story reflects the power of resilience, innovation, and strategic financial support in overcoming the challenges that many small businesses face today.
UFT Canada: From Startup Struggles to Market Leader
Founded by Dr. Park & Steven Lee with a vision to lead the air filtration industry, UFT Canada faced typical startup challenges, particularly with cash flow management. Located in Brantford, Ontario, UFT Canada specializes in air filtering technologies for industries ranging from electronics and medical gear to safety supplies. Their patented innovations serve high-profile clients like Nike, The North Face, and Polartec, with significant exports to Europe. However, with customer payments stretching to 60 days or more, cash flow was a constant challenge.
UFT needed to pay suppliers on time and thereby help keep production running smoothly, since ordering raw materials more quickly would ensure that their supply chain remained intact. This was important in order for them to scale efficiently while meeting demand from high-profile clients, even as they navigated the cash flow disruptions brought on by those extended payment terms. How could they overcome this challenge?
Like many small businesses, securing adequate funding from traditional banks proved difficult. Steven’s perspective: “The banks wanted to see at least two years of financial statements. Having products that were in high demand wasn’t enough, and they wouldn’t touch us.” Bank financing for a start-up like UFT was not a fit.
Clearing the Logjam
Through a recommendation from the Business Development Bank of Canada, UFT Canada partnered with us, leveraging our invoice factoring services to accelerate cash flow. By receiving payment for outstanding invoices within 48 hours, UFT was able to increase production, expedite material orders, and expand their operations—even during the global pandemic.
“Capitally’s invoice factoring was essential for managing cash flow,” Steven notes. “It enabled our rapid growth trajectory.”
UFT expanded internationally during this time as well, and our team provided critical support: we facilitated transactions with European clients and offered strategic advice on supplier issues and material costs. This helped UFT scale smoothly and efficiently.
Rapid Growth and a Bright Future
Thanks to this partnership, UFT has grown from a team of only three employees to a thriving business of more than 20, with projected revenues of almost $6 million at the time we last checked in with them. They secured a $1 million line of credit and plan to expand further into international markets.
Capitally: Supporting Canadian Small Businesses
It’s been a privilege to be part of UFT Canada’s incredible growth story. As a financing partner, we specialize in providing tailored solutions that empower businesses to reach their full potential. Whether you or your client are a startup navigating cash flow challenges or an established company looking to scale, we’re here to help.
This Small Business Week, we celebrate the dedication, resilience, and innovation of small businesses like UFT Canada that are driving Canada’s economy forward.
Let’s talk about how Capitally can support you or your client’s business. Contact us today to explore the financial solutions that can unlock the next phase of growth.
