Have some clients who made it to your “nice” list and want to give them something more meaningful than a tin of Moose Munch, a five-pound summer sausage, and a box of magical pears?
As always, your friends at Liquid Capital have you covered.
We’ve put together three thoughtful invoice factoring-inspired gifts that address the holiday season stressors common to many B2B operations. We have gifts that help solve their immediate challenges and others that put them on stronger financial foundations for the new year.
No need to wait until December 25th to unwrap and enjoy all year long. Let’s see what Liquid Capital’s hard-working elves have prepared for you to gift … after all, Santa shouldn’t get all the credit.
1. Properly-Stocked Shelves
Many B2B businesses struggle with the cosmic irony that is the annual overlap of peak demand and year-end cash scarcity. With their money tied up in unpaid invoices, these businesses are forced to miss opportunities because they cannot restock adequately.
Invoice factoring offers a smarter solution. Here’s how to help your clients use it effectively:
- Convert upcoming receivables into immediate cash to fund inventory purchases
- Maintain optimal stock levels without maxing out credit lines
- Keep supplier relationships strong by paying on time or early
- Take advantage of supplier early payment discounts
Consider a former client, a retail store that used purchase financing to make larger inventory purchases and maintain optimal stock levels. This allowed them to save on shipping costs, secure vendor discounts, and keep products available longer – leading to 100% growth in sales even during challenging market conditions.
2. A Little Holiday Cash
Remember opening Christmas presents your grandparents or other relatives sent. There was usually one grandparent (usually a grandma) who sent hot, itchy hand-knit wool socks. But then there was the relative (maybe the rich, fun uncle … the “FUNcle”) who sent the #10-size envelope that contained the card with the money flap. You could almost see beams of light radiating from the card as it opened.
You can be the FUNcle by helping your clients free up cash. How? Many businesses carry expensive short-term financing that strains their cash flow. Factoring can help create breathing room to restructure these obligations.
Consider these strategic approaches:
- Use factoring proceeds to pay down merchant cash advances or high-interest loans
- Consolidate multiple payment obligations into more manageable structures
- Improve cash flow by reducing monthly debt service
- Start the new year with a stronger balance sheet
Consider Silani Cheese, a family-owned specialty cheese manufacturer that used factoring to restructure its outstanding debts and rebuild its business. By establishing a reliable factoring relationship, they not only resolved their immediate debt challenges but also secured the steady working capital needed to return to profitability and fund future growth.
3. A “Future Favor” Certificate
Admittedly, this gift does not have the immediate curb appeal of the previous two … but it is by far the most valuable. It’s like the “Future Favor” certificate a parent puts into a card promising help on demand when redeemed. Sure, it’s not a plastic candy cane filled with M&Ms but what good are all the M&Ms in the world when you need help building a dinosaur out of toothpicks for school tomorrow because you put it off until the night before? Time to redeem that certificate!
That’s kind of what it is like when you help a client set up a factoring relationship BEFORE an urgent need surfaces. That’s the thing about urgencies and opportunities: they are very difficult to plan for but they need to be addressed quickly. This is where strategic factoring relationships become vital.
Help your clients lay the groundwork now by:
- Establishing factoring relationships before urgent needs arise
- Creating flexible funding that grows with their sales
- Building a track record that can support larger credit lines later
- Ensuring they can quickly fund new contracts or opportunities
Consider Defense Products & Services Group USA, who secured a $5 million military contract but needed to place manufacturing orders 30 days in advance. By establishing their factoring relationship early, they created a reliable $2 million credit facility that lets them confidently take on new contracts without waiting for customer payments to start production.
Merry Christmas and here’s to the happiest and most prosperous of New Years!
The Gift of Strategic Preparation
The intent of all of these gifts is to give you resources you can use to help your clients not just finish strong but to prepare for an even stronger new year. By helping your clients look beyond immediate cash needs, they can see how factoring can strengthen their long-term financial position.
Factoring works best when it’s part of a broader financial strategy. Encourage your clients to consider:
- How improved cash flow can support their growth goals
- Ways to leverage factoring alongside other financing tools
- Opportunities to strengthen supplier and customer relationships
- Steps to build more sustainable financial operations
Work with an experienced factoring partner who can help you support your clients’ broader financial goals. The right partnerships help you deliver solutions that go beyond simple transaction funding to create durable business value.
