What is invoice factoring?
Factoring is an alternative form of financing ideally suited to small and medium-sized businesses, especially enterprises that do not have a long and established banking record with a major lender. In financial circles, there is a popular saying: “a bank only gives you money when you don’t need it.” That’s because banks operate on a line-based financing model based on what your business has already done and the assets you currently own.
Factoring is an innovative way for your business to access the funds you have tied up in accounts receivable.
Liquid Capital effectively purchases your outstanding invoices and advances you up to 85% of the value. We then collect the funds from your client on your behalf and transfer the remaining balance to you, less applicable fees.
Think of your growing business like you’re driving a car. Major banks look in the rearview mirror – where you have been and what you have today. By comparison, factoring is all about looking through the windshield at where you’re going, and all the opportunities you have on the road ahead. At Liquid Capital, we look at where your business is going and give you the liquidity you need to get there faster, easier and with greater confidence.
Getting started is easy: