Nearly six years back, Jonathan Brindley, founder of Toronto-based Liquid Capital Advance Corp., set out to develop a factoring company.<\/p>\n
The goal was to create an entity that would provide small- and medium-sized businesses with the financial resources they needed to tide them over before their receivables were paid. \u201cIt\u2019s an attractive business because factoring suits so many companies,\u201d said Brindley, a chartered accountant turned entrepreneur, at the time.<\/p>\n
In return for a small fee (in the two per cent to four per cent range), Liquid Capital would advance 75 per cent to 85 per cent of the face value of the receivable with the balance retained until the invoice was paid. Once the funds have been repaid they can be redeployed again. Ideally the goal is to recycle the funds every 30 to 90 days.<\/p>\n
But Brindley\u2019s business evolved into much more than a recourse factoring shop. It now defines itself as \u201ca full-service working capital and trade finance company,\u201d that also provides \u201casset-based lending, purchase order financing, inventory financing and equipment leasing.\u201d<\/p>\n