This document provides information for business owners on funding startups and growing businesses. It discusses that startups are harder, take longer, and cost more than anticipated. The best approach to funding combines several options like trade credit, private equity, loans, and lines of credit to create a financing portfolio. Private equity requires an experienced management team, valuable product, access to markets, a realistic plan, and execution experience. Alternative funding options like asset-based lending can unlock value from a company's assets like accounts receivable and inventory to provide cash flow. Factoring receivables and purchase order financing are presented as "just in time" funding options.

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2. Start up Truths
 Its Harder
 It Takes Longer
 It costs more money
 Sales are slower to come
 Most business failures are due to inadequate
funding and/or poor cash flow
Funding sources know this
You should too - Be realistic - Plan for it
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3. Financing Continuum
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4. Best in Class Approach to Funding
A Portfolio of Funding Includes 3 or More:
 Options:
 Trade Credit – Free
 Smaller amounts of private Equity
 Fixed Asset Loans
 Working Capital Line of Credit
 A/R Factoring Line
 Purchase Order Financing line
 Equipment Leasing or Sale / Leaseback
 Personal Capital
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5. Equity
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6. Requirements of Private Equity
 Executive Management
Team with “Experience”
 A Product with value
 High Value Market and a
way to reach it
 Realistic Business Plan
 Successful Execution
Experience
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7. FREE MONEY
 This is the only free money available
 Give trade credit the highest respect – do not rob Peter to
pay Paul if Peter is a supplier
 Your suppliers will likely increase free trade credit if you
pay on time or early
 Once trade credit is lost the requirements for cash can
increase exponentially
 Availability of trade credit affects your credit rating
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8. Alternative Funding
Asset Based Lending (ABL)
Unlocks value of standing assets
Purchase Order Financing
Accounts Receivable Financing
Inventory Financing
Sale / Leaseback of equipment
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9. Financing Continuum
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10. AR & PO Financing
Just in time funding…
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11. Requirements
CLIENTS NEED
 Integrity, solvency, reasonable margins
 Quality of products / services
 Quality of documentation
 Credit worthy customers
 The client may be credit impaired. The decision is based on
the credit quality of their customers.
 Able to provide security we require
Not Required
 Length of time in Business
 Perfect company credit
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12. Client Profile
 Commercial Business
 B to B
 Government Contracts
 Non-consumer
 Sales of $10,000 to $10,000,000 per month (startups OK)
 Lack availability to sufficient traditional bank financing
 Deliver quality products or services
 Quality and diversification of customers
 Growing, Transitional or Restructuring Companies
 Debtors in Possession 12

13. Client Profile
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14. Client Profile
Low credit quality customer base
Post delivery performance requirements
Erratic or unmanageable dilution in accounts
receivable
Purely business to consumer (B to C)
Poor customer documentation
(i.e. PO, Work Order, Contract, Invoicing, Proof of Delivery)
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15. Benefits
 Significantly increases cash flow
 Improves sales & production capacity
 Improves your Balance Sheet
 Improves credit rating / vendor relations
 Increases purchasing power
 Its like outsourcing your A / R & Billing Function
Management stays focused on business
development & operations rather than 15
credit & collections

16. Benefits
 Staffing / Temporary Employment Services
 Environmental & Oil Field Services
 Manufacturing & Wholesale Distribution
 Service Companies of all kinds
 Janitorial
 Guard services
 Landscape maintenance
 Government Contractors
 Transportation / Trucking
 Printing 16

17. Liquid Capital
North America Coverage Since 1999
ABL – Asset Based Lending Advantage
• A/R Financing – Factoring • Locally owned - local underwriting
• Purchase Order Financing • Fast, Flexible financial packages
• Leasing / Sale - Leaseback • Clients: from Startups to $10M / Mo.
• Import / Export Factoring •A/R & Billing services
• Inventory Financing •Over 30 credit & collections staff
Members of
Accord / Montcap / Liquid Capital
Financial Family
Collectively Financing more than 17
$1 Billion Annually

18. Thank You
Helping Businesses Succeed
Bruce Dawson, President
Patrick Dawson, VP Business Development
Liquid Capital of Colorado
Tel: 303-774-7623
Fax: 888-774-7262
Cell: 303-902-7056
Bruce@LiquidCapitalofCo.com
PDawson@LiquidCapitalofco.com
www.LiquidCapitalofCo.com
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