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How Factoring Works

Let’s help you get back to a healthy balance sheet.

You want to grow your business. Your ideas and customer / supplier stakeholders are ready but your balance sheet is not. Unfortunately, there is too much money tied up in accounts receivable. There is work that you’ve completed or product you’ve already shipped, you’re just waiting to get paid. Start accessing these funds through invoice factoring with Liquid Capital.


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.

Factoring-How-It-Works

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:

  • Contact your closest Liquid Capital Office

    Find your closest Liquid Capital office and speak directly with your local Liquid Capital Principal.

    Please note: At this time, we can only assist companies that are incorporated.

  • Determine the best solution

    Work with your Liquid Capital Principal to determine the best solution for your funding needs. You’ll then complete a more detailed application.

  • Application review

    Liquid Capital’s underwriters will perform due diligence, such as a customer credit check and opportunity analysis.

  • Receive funding

    If your business and accounts receivable clients are all in good standing, we’ll approve you for factoring and will advance your business up to 85% of the value of your invoices.

    We’ll collect payment from your customer (we have a customer-friendly process for this that protects your relationship and standing) and we’ll pay you the remainder of the balance (less applicable fees).

  • Ongoing support

    Your Liquid Capital Principal will ensure you always have full visibility into the process, with ongoing easy access to funds.

Why choose Liquid Capital?

  • We are North America’s leading factoring specialists, with the largest network of offices across North America. In fact, we’ve deployed over $3 Billion in working capital across North America to help businesses grow.
  • We offer a customized, flexible approach with local decision-makers ready to respond quickly with funding
  • Our Liquid Capital Principals are growth strategy and funding experts. They’ll make sure you have a good view of available options and pick the right solution for your business.
  • We offer immediate financing upon approval
  • Credit coverage can be included to reduce risk, time and overhead expenses
  • Funding is not dependent on your balance sheet, or time-in-business
  • Our 24-hour online reporting system gives you full access to funding status 24-7
  • No long-term contracts, hidden fees or debt
  • Keep in mind: Not all factoring entities are the same. Many are not transparent, having hidden triggers for higher rates, or contracts that make it hard to move away from a funding solution. That’s not us. Our terms are straightforward. We have built our business on building relationships fueled by trust, understanding, and capability. We are proud when our clients evolve into traditional funding relationships with banks.

Liquid Capital

Client Success Stories

When this AV company consistently experienced slow cash flow due to unpaid invoices, they used invoice factoring to inject capital into their business and fueled exponential growth.

Discover how Liquid Capital helped. 

Best Broadcasthttps://liquidcapitalcorp.com/our-clients/best-broadcast-av-company-booms-by-adding-invoice-factoring/Read the Success Story

How one business owner found their road to success with the help of alternative funding and strategic business advice

Here’s how invoice factoring accelerate their cash flow

Serna's Trucking
Serna’s Truckinghttps://liquidcapitalcorp.com/our-clients/sernas-trucking-driving-results-within-the-construction-industry/Read the Success Story

Due to a restructuring process, this specialty cheese company had repaid bank debt using personal funds. To get fully back on their feet, they needed a powerful financing solution.

Uncover how that was achieved through invoice factoring.

Cheese and bread on a board
Silani Cheesehttps://liquidcapitalcorp.com/our-clients/case-studies/silani-cheese/Read the Success Story

Discover how Global Aviation leveraged invoice factoring to reach new heights of business success with the help of Liquid Capital.

Read the story here

Global Aviation and Invoice Factoring
Global Aviationhttps://liquidcapitalcorp.com/our-clients/global-aviation-above-and-beyond/Read the Success Story
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Value-added Services

In addition to business factoring services and other funding alternatives, Liquid Capital offers a fully integrated service bundle including:

  • Processing and ledgering of accounts receivable
  • Credit review and assessment
  • Professional collection of accounts receivable
  • Preparation of all reports
  • Great risk reduction strategies

By outsourcing these time-consuming tasks, you can concentrate on doing what you do best – growing your business. Our integrated service bundle means you will no longer be handcuffed by the time and money costs associated with administrative duties and paperwork.

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Read more about invoice factoring

Say “Yes” to Larger Orders: How Invoice Factoring Lets You Take On Bigger Opportunities Without the Cash Flow Stress

January 8, 2025
Every business owner knows that heart-sinking moment. A major opportunity lands on your desk - the kind that could transform your company’s trajectory. But instead…
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December 18, 2024
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…
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Year-End Financial Planning: How Invoice Factoring Can Help Your Clients

December 17, 2024
As a financial broker, you know the fourth quarter brings unique challenges for your B2B clients. While they're managing holiday season demands, they also need to…
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5 Common Invoice Factoring Misconceptions Debunked

November 19, 2024
As a business owner, you've heard about invoice factoring. Maybe you've dismissed it as too expensive or complicated. But when bank loans aren’t an option and…
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Invoice Factoring: A Better Alternative to Merchant Cash Advances

May 23, 2024
Business owners lean on Merchant Cash Advances (MCAs) more and more to solve cash flow problems. MCAs offer quick access to cash based on future sales projections.…
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Weather the recession with invoice factoring

Recession-proof your business and thrive during challenging times

November 18, 2022
Recession-proof your business with these top tips. In a recession, ensuring your business has enough working capital is not only key to continuing to meet…
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Advantages of factoring your invoices

Advantages of factoring your invoices with Liquid Capital

November 1, 2022
Not all factoring companies are made the same. These are the benefits of factoring your invoices with Liquid Capital. Invoice factoring can be an excellent…
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October 17, 2022
Alternative funding options are often overlooked sources of financing, but they can help businesses grow exponentially. Here’s what you need to know about invoice…
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August 11, 2022
Invoice factoring is a powerful funding tool for growing businesses or companies that need an alternative source of funds. But how much does invoice factoring cost?…
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to help.

Liquid Capital is North America's leading alternative business funding provider.

Get personalized strategic guidance, and up to $10 Million in fast funding.

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Helping business grow for 20+ years throughout Canada and United States.

1-844-228-0800

Canada Head Office
Liquid Capital Enterprises Corp.
5075 Yonge Street, Ste. 700
Toronto, ON M2N 6C6

US Head Office
Liquid Capital Enterprises Corp.
921 West New Hope Drive,
Suite 702
Cedar Park, TX 78613-6786

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Latest Posts

  • Building Your A-Team: How Factoring Creates the Cash Flow You Need to Hire and Retain TalentMay 13, 2025 - 5:31 pm
  • Beyond Duct Tape: How Invoice Factoring Creates Both Workplace Harmony and Market LeadershipApril 15, 2025 - 4:32 pm
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