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 BroadcastRead 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 TruckingRead 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.

Silani CheeseRead 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 AviationRead the Success Story

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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