{"id":21332,"date":"2024-08-22T12:49:51","date_gmt":"2024-08-22T12:49:51","guid":{"rendered":"https:\/\/liquidcapitalcorp.com\/?p=21332"},"modified":"2026-09-23T13:59:26","modified_gmt":"2026-09-23T13:59:26","slug":"navigate-cash-flow-problems-with-invoice-factoring","status":"publish","type":"post","link":"https:\/\/liquidcapitalcorp.com\/es\/our-clients\/navigate-cash-flow-problems-with-invoice-factoring\/","title":{"rendered":"How Liquid Capital Helped One Company Navigate Financial Challenges with Invoice Factoring"},"content":{"rendered":"

How Liquid Capital Helped One Company Navigate Financial Challenges with Invoice Factoring<\/em><\/p>\n

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Short on time? Read this 30 second summary<\/b><\/span><\/p><\/blockquote>\n

One manufacturing company founded in 2003, enjoyed steady growth until the 2009 economic downturn. Despite winning a large contract from a major grocery retailer, the company faced a cash flow problem when a large Canadian bank pulled their line of credit, leaving them classified as \u00abnot bankable\u00bb by traditional banks.<\/span><\/em><\/p>\n

Turning to Liquid Capital for assistance, it received quick cash through invoice factoring, with $1.2 million made available over the course of the contract. This funding helped it maintain operations and deliver on the big order. By 2024, the company regained bankable status and achieved sales growth, emerging stronger from the partnership with Liquid Capital.<\/span><\/em><\/p>\n

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Case Study: How Liquid Capital Helped <\/b><\/b>One Manufacturing Company Navigate <\/b>Financial Challenges with Invoice Factoring<\/b><\/h2>\n

Business goes in cycles. During good times, it can feel relatively stress-free. Then something unexpected happens and you now have some serious problems to solve. Let\u2019s talk about how one company navigated the economic storm of 2009.<\/span><\/p>\n

When challenges come, it takes more than vision. You need great relationships with people who are willing to spend effort to help you out.<\/span><\/p>\n

Founded in 2003, the company enjoyed steady growth for its first 6 years, but the 2009 economic downturn brought challenges that threatened the business.<\/span><\/p>\n

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Cash Flow Hits a Wall<\/b><\/h2>\n

In 2009, the economic recession hit, forcing everyone to take stock of things and make some tough decisions. The company faced two options: cut costs and reduce their workforce, or take an aggressive approach to capture market share while competitors played it safe. The company chose the latter, increasing sales and overhead in hopes of capturing market share. It was a bold move, but one that\u2019s helped lots of companies thrive during tough times when everyone else is bearish.\u00a0<\/span><\/p>\n

And the approach worked. They landed a big project from a huge grocery retailer. But it didn\u2019t work fast enough.<\/span><\/p>\n

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\u00ab[The client] came through the door with good relationships, good business practices and a solid contract in-hand. He was clear about his situation and didn’t hide anything or make me guess. It made him an ideal client, and we were able to help.\u00bb<\/span><\/strong><\/p>\n

– Liquid Capital<\/strong><\/strong><\/p><\/blockquote>\n

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As successful as they were, they had a cash flow problem.<\/span><\/p>\n

To make matters worse, despite winning this huge contract, their bank pulled their line of credit. It wasn\u2019t personal; it\u2019s just how banks are structured. They lack the ability to handle non-standard situations.<\/span><\/p>\n

The company\u2019s efforts to restore their credit line failed, leaving them without necessary funds and classified as \u201cnot bankable\u201d by traditional banks.<\/span><\/p>\n

Ironically, it was now practically guaranteed money to continue operating via the large contract. And now they can\u2019t get the funding to fulfill the contract and keep the doors open.<\/span><\/p>\n

Timing is everything, and they found themselves out of time.<\/span><\/p>\n

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Invoice Factoring<\/b><\/h2>\n

Turning to another business bank in Canada for assistance, the company was directed to Liquid Capital. Here, Dan from Liquid Capital knew time was important. And he didn\u2019t let the grass grow.<\/span><\/p>\n

Dan handled initial research and underwriting within a month. Once this was done, they were set to receive funds within a day of sending out their invoice, making $1.2 million available through invoice factoring over the course of that contract. This immediate cash helped the company maintain operations and deliver on their big order.<\/span><\/p>\n

And what\u2019s more, once that initial underwriting was done, Dan could now buy any invoice under that contact, giving them cash the next day.<\/span><\/p>\n

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\nProcess Overview:<\/b><\/h2>\n
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  1. Initial Assessment:<\/b> Liquid Capital assessed their financial status and operations, and ran credit on the company\u2019s customer.<\/span><\/li>\n
  2. Invoice Factoring Implementation:<\/b> They began getting cash for their invoices. Cash flow improved the day after invoice submission.<\/span><\/li>\n
  3. Consultative Support:<\/b> Dan helped them over many hurdles, offering strategic advice, based on their strengths to overcome other times of turbulence in the company.
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    Today, the Company is \u201cBankable\u201d<\/b><\/h2>\n

    Businesses run into cash flow problems either from bumps in the road or the need for rapid growth or both. And when banks can\u2019t help, Liquid Capital offers cash flow strategies that don\u2019t just get you by today, but position you for the future.<\/span><\/p>\n

    They did their part and kept their eyes on the larger vision. With the help of Liquid Capital, they were able to stabilize and become bankable by 2024.<\/span><\/p>\n

    Results and other milestones:<\/strong><\/span><\/p>\n