Supplemental line of credit takes factoring to the next level
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.
Our new Line of Credit offering—provides new and existing factoring clients—with the additional funds required above and beyond their accounts receivables. Clients automatically qualify for this solution in conjunction with their factoring facility. The Line of Credit kicks in like “overdraft” protection allowing access to much needed additional cash and keeping the factor facility in good standing. A factoring client can also apply for an increased Line of Credit for business expansion and to purchase inventory or equipment, take advantage of supplier discounts or cover additional payroll.
Discover the benefits of factoring supported by a line of credit
- You can focus on business without worrying because you have access to additional funds.
- 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.
Ready for funding? We’re ready to help.