1. LIQUID CAPITAL PRODUCT MATRIX
PM100 11/15
PRODUCT DESCRIPTION TARGET CLIENT FACILITY SIZE
Factoring
Factoring is a type of business financing
in which a factoring company purchases
accounts receivable in exchange for an
immediate payment. This payment provides
liquidity to the client.
Small to mid-size businesses that
have cash flow problems because
they cannot wait the usual 30 to
90 days for customers to pay
invoices. Annual revenues of
$500,000 to over $10 million.
Typical size of line from $20,000
to over $5 million.
Purchase
Finance
Program
(PFP)
PFP is a financing solution that helps
businesses procure goods or equipment
on more favorable terms than offered by the
client’s supplier. The PFP financing does not
interfering with the client’s existing financing.
Clients typically tap into this financial
solution when they need more
working capital to support growth,
or to take advantage of time-limited
offers such as a bulk sale through
their supplier network. Annual
revenues of $2 million to over
$25 million.
Typical purchase activity of
$5,000 to over $500,000 per
month on a revolving or a spot
basis.
Purchase
Order
Finance
(PO)
Purchase order financing is used to fund the
production of finished goods or value added
products by a third-party manufacturer.
The products must be pre-sold and the
manufacturer can be domestic or foreign.
Small to mid-size companies with
large purchase orders. Annual
revenues of $500,000 to $25 million
Typical size of line from $50,000
to over $5 million.
Asset Based
Lending
(ABL)
ABL is a form of commercial financing
where a client’s collateral such as accounts
receivable, inventory or equipment determines
the amount of the borrowing base and the
amount of financing available to the client
under the ABL line.
Small to mid-size businesses that
do not qualify for bank lines or are
growing too fast for a bank line to
be adequate to fund their growth.
Annual revenues from $2 million to
over $25 million.
Typical size of line from $1 million
to over $5 million.
Export
Financing
Export financing is the use of either Factoring
or ABL to provide working capital for a client’s
export sales to foreign customers. Many banks
and finance companies will not provide financing
for sales to foreign customers, but Liquid Capital
offers financing for export sales.
Clients that export goods/services
to foreign corporations and wish to
protect themselves against the risk
of default of their clients. Annual
revenues of $2 million to over
$25 million.
Typical size of line from $50,000
to over $5 million.
Equipment
Leasing
Equipment leasing is the process of securing the
use of computers, machinery and other types of
equipment under a lease for a specific period of
time. There is often a buy-out provision at the end
of the lease term. Equipment leasing can provide
a client with additional working capital without
impacting existing financing for the business.
Equipment-related leases are
especially helpful when the need
for a given piece of equipment is
only temporary. Annual revenues of
$500,000 to over $250 million.
Typical size of line from $25,000
to $500,000.
Cash
Advances /
Revenue-
Based
Funding
Cash advances are provided based on the
expected future revenues of a business in
light of past performance. The advance is
unsecured and is typically payable over a six
to twelve month period.
Small businesses that may lack
adequate capital during the early
stages of opening their business.
Annual revenues of $500,000 to
over $5 million.
Typical advance from $20,000 to
$500,000.
Credit
Insurance
Credit Insurance provides protection to the client
against the insolvency and protracted payment of
a customer. Under the Liquid Capital policy, the
client is offered a very competitive premium on
a pay-as-you-go basis with no minimum annual
premium.
Clients with large customer
concentrations and/or export sales.
Coverage is 90% of the
accounts receivable within the
approved coverage amount;
there is no deductible.
Why Liquid Capital
Liquid Capital is a full-service working capital and trade finance company. We have the largest geographic footprint of alternative funding professionals in North
America, offering clients a customized and flexible approach with local decision makers. We offer a complete range of solutions for all industries and provide
immediate financing upon approval with no long term contracts or hidden fees. At Liquid Capital, we help you grow your business.
To learn more about Liquid Capital,
please contact Judy Perdomo at 403-710-3985
or visit www.lcrockyview.liquidcapitalcorp.com today.