When you work with our invoice factoring company, you won’t have to apply every time there’s a short-term need for cash flow.
Access working capital when you need it with invoice factoring services.
For businesses at any stage, significant working capital is often held up in accounts receivable. Yet, they’re often expected to pay out expenses before collecting their invoice payments.
Even with healthy sales to great customers – and a robust ledger of accounts receivable – employee payroll, lease payments, business supply purchases and other ongoing costs won’t wait. The gap in working capital may be impeding your business success and put future sales opportunities at risk.
Invoice factoring (also known as “accounts receivable factoring” or just “factoring”) is a safe and reliable way to access working capital. It converts outstanding invoices into capital paid out to businesses that need help with immediate cash flow needs.
Invoice factoring is not a loan but rather an advance on payments that are already owed to your business. By working with an invoice factoring company, you’ll be able to get access to that cash flow much faster.
Quick and secure financing
Invoice factoring is an effective way for your business to access quick and secure financing through the sale of your credit-worthy invoices. You can receive 80% or more of the value of your accounts receivable on a formula basis to grow and/or disburse as your capital needs require.
Your only limit is your ability to sell to credit-worthy customers. We assume, manage and collect the financed debts, as well as provide clear, accessible reporting to keep you up to date on the process.
How invoice factoring works
The invoice factoring process can be easily explained in five simple steps:
We provide unlimited working capital to businesses that can sell credit-worthy invoices to us. Based on the size of your outstanding invoices, you can receive 80% or more of the value of your accounts receivable on a formula basis to grow and disburse as you require.
We assume, manage and collect the financed debts and provide transparent, accessible reporting to keep you up to date on the process.
Where a bank loan might be denied, an invoice factoring company could potentially advance you hundreds of thousands of dollars—in a very short time frame.
Invoice factoring qualifications
When the bank denies you a loan, Liquid Capital can help you inject much-needed capital into your business. Invoice factoring could provide you with funds to keep your business running in a short time — sometimes as quickly as one day.
In order to qualify for invoice factoring services from Liquid Capital:
Your business must:
✓ Operate in the B2B space, whether you’re a small business, a growing company, or an established enterprise
✓ Sell a product or service to another business, rather than direct consumers
✓ May not meet the underwriting requirements for a traditional bank loan
✓ May not have the best credit rating right now, but your customers do
✓ Have credit-worthy customers that have consistently paid invoices in the past
Your sales must:
Your invoices must:
What industries can leverage invoice factoring services?
We help clients who operate in:
Benefits of invoice factoring
Get quick access to capital
When you work with Liquid Capital, you don’t have to apply for funding every time there’s a short-term need for cash flow. We are just a phone call away whenever you need additional funding or need to chat about anything business-related.
No more loans on the books
Invoice factoring is not a small business loan, as there is nothing to pay back. It is on us, the factoring company and your partner, to collect payment for the invoices. We purchase your outstanding invoices at a discount, delivering you cash in hand. Payments are sent out in two installments: the initial covers around the majority of the value of your invoices; the second is a reserve that’s released once payment has been collected.
Simple application process
You’re not required to fill out lengthy application forms or have a lengthy wait to get funding. Our stress-free invoice factoring services and approval process takes minimal time, and you work directly with a dedicated local Principal.
Need more information?
We’re ready to help you meet any immediate cash flow needs. Get in touch with us to book a free consultation call, and discover if factoring is the right fit. Or visit our Invoice Factoring FAQ page to read the answers to our most frequently asked questions about working with invoice factoring companies.
Q) How does invoice factoring work?
A/R factoring is another term for invoice factoring, a flexible way for your business to access the funds you have tied up in accounts receivable. To learn more about how it works, click here.
Q) Does my business qualify for invoice factoring?
If you sell products or services to other businesses and have outstanding invoices with credit-worthy customers, you may be eligible for factoring. Click here to learn more about our requirements.
Q) What kind of invoices are eligible for factoring?
Your invoices must not be older than 90 days and have a credit term of at least Net 30 days.
Q) Is my information safe?
Absolutely. We never save or see any of your personal information or business banking information.
Q) Do I have to apply every time I need to factor my invoices?
No. We will conduct an initial approval process at the time of your first application. For any subsequent funding needs, we’ll be able to assist you based on your credit limit approved by Liquid Capital.
Keep reading about the benefits of invoice factoring.
- Overcome cash flow challenges with accelerated working capital
- Reach new heights of growth with invoice factoring
- How can invoice factoring companies help fund your growth?
- Should your business use invoice factoring services?
- Top 4 things to consider when choosing your invoice factoring partner
- How invoice factoring works
- Will my business qualify for invoice factoring?
- Need a bank loan? 16 ways factoring is better
- What to do when a financial institution breaks up with you
There’s a reason we’re North America’s leading alternative funding providers. Learn more about The Liquid Capital Difference.