We are proud when our clients evolve into traditional funding relationships with banks. We have built our business on building relationships fueled by trust, understanding, and capability. Many are not transparent, having hidden triggers for higher rates, or contracts that make it hard to move away from a funding solution. Keep in mind: Not all factoring entities are the same. ![]() No long-term contracts, hidden fees or debt.Our 24-hour online reporting system gives you full access to funding status 24-7.Funding is not dependent on your balance sheet, or time-in-business.Credit coverage can be included to reduce risk, time and overhead expenses.We offer immediate financing upon approval.They’ll make sure you have a good view of available options and pick the right solution for your business. Our Liquid Capital Principals are growth strategy and funding experts.We offer a customized, flexible approach with local decision-makers ready to respond quickly with funding.In fact, we’ve deployed over $3 Billion in working capital across North America to help businesses grow. We are North America’s leading factoring specialists, with the largest network of offices across North America.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. ![]() 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. Major banks look in the rearview mirror – where you have been and what you have today. Think of your growing business like you’re driving a car. We then collect the funds from your client on your behalf and transfer the remaining balance to you, less applicable fees. Liquid Capital effectively purchases your outstanding invoices and advances you up to 85% of the value. 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.įactoring is an innovative way for your business to access the funds you have tied up in accounts receivable. Explanation: Here you have the definition of Factoring: Factoring is a financial transaction and a type of debtor finance in which a business sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount. See EXPORTING, DEBTORS, CREDIT CONTROL.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. It can be especially useful in the latter context where credit periods on exports are, on average, two to three times longer than on domestic sales and where there are additional complications arising from dealings with relatively unknown foreign customers and an unfamiliarity with local customs and laws. In addition, factors are usually prepared to undertake the administration of their clients' sales ledgers, assess credit risks and insure clients against bad debts, thus saving the client the trouble and expense of maintaining his own sales accounts and credit control departments.įactoring extends to both domestic and export sales. ![]() The remaining balance, less the fee for providing the facility, is paid over when the factor has received payment from the customer. purchasing the client's TRADE DEBTS.įactors typically provide immediate cash up to the value of 85% of the client's invoices, thus releasing ready money for the client to use for WORKING CAPITAL purposes. All Rights Reserved factoring the provision of finance (and other related services) by one firm (the factor) to another firm (the client) by discounting its unpaid INVOICES issued to customers, i.e.
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