Above and beyond—a line of credit that helps keep your factoring relationship onside
Factoring provides an enormous business advantage to companies whose cash flow challenges limit their growth potential, but who don’t meet the banks’ loan criteria. When your receivables don’t align with your payables, you may not be able to meet your everyday financial obligations. Factoring allows companies that have sales lined up and contracts signed with reliable customers to factor their receivables, essentially selling them for a percentage of what’s owed and receiving the up-front cash that will let them continue conducting business.
But what happens if you get into a factoring “over advance” situation?
It can easily happen without a company intending it. You may be advanced a certain amount against eligible receivables, but if the receivable becomes more than 90-days old, it is no longer eligible and you’ll be expected make a repayment.
Our new line of credit offering—available through Liquid Capital—solves this problem. It provides new and existing factoring clients with a line of credit—automatically issued in conjunction with the factoring facility—that kicks in in the event of an overage scenario, essentially providing “overdraft” protection and maintaining the good standing of the factoring facility. That way, you don’t have to repay the factoring funding or provide more receivables on an over advance.
How does it work?
- You automatically qualify for this line of credit as soon as you open a factoring facility with Liquid Capital.
- You’ll receive reports regarding line of credit payment deadlines and minimum payments, with a certain percentage due every month.
Discover the benefits of factoring supported by a line of credit
- You can focus on business without worrying because you’re protected in any factoring overage situation.
- There are no limitations on how this additional capital can be used. Anything beyond what’s used to cover your factoring overage can be used as you see fit—and is available at very competitive rates.
- Liquid Capital offers this unique service based on the valuable relationships we have with our clients, so you don’t have to go to cash advance companies or other short-term lenders.
- You don’t have to use the line of credit, but it’s there if you need it.
Do you have the flexibility and support to grow within your current factoring relationship? If your potential is being constrained, contact us today.