How Factoring Works
Let’s help you get back to a healthy balance sheet.
You want to grow your business. Your ideas and customer / supplier stakeholders are ready but your balance sheet is not. Unfortunately, there is too much money tied up in accounts receivable. There is work that you’ve completed or product you’ve already shipped, you’re just waiting to get paid. Start accessing these funds through factoring with Liquid Capital of Colorado.
What is factoring finance?
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. 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.
Think of your growing business like you’re driving a car. Major banks look in the rearview mirror – where you have been and what you have today. 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. At Liquid Capital of Colorado, we look at where your business is going and give you the liquidity you need to get there faster, easier and with greater confidence.
Here’s how it works:
- Fill out an application for factoring with Liquid Capital of Colorado, or simply call at 303-774-7623
- Liquid Capital of Colorao’s underwriters perform due diligence, such as a customer credit check and opportunity analysis
- If your business and accounts receivable clients are all in good standing, we approve you for factoring and we advance your business up to 85% of the value of your invoices
- We collect payment from your customer and pay you the remainder of the balance (less applicable fees)
With the flexibility, fair rates, and great customer service, we found Liquid Capital to be the right choice for our company. By putting monies at our disposal, we can compete with some of the larger companies.”