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April 2 2020

Liquid Capital Smart Solutions: Improving cash-flow in times of need

Often companies can use invoice factoring when bank loans or equity investments don’t pan out as planned. But savvy business pros look at this opportunity far more strategically. During periods of development and successful operations, high-growth companies need to access large amounts of capital – quickly and with assurance. For new companies starting out, cash-flow is always top of mind. Regardless of whether you are starting out with a hot product to market or have high-growth revenues, invoice factoring can help. Invoice factoring frees up huge amounts of working capital, puts cash in hand, allows you to take on new business and catapult your growth.

Liquid Capital Smart Solutions (LCSS) is a Calgary-based company that has been helping businesses across all sectors for over 15 years, by improving cash flow with invoice factoring. LCSS specializes in alternative finance solutions to businesses with monthly revenue of $20,000 to $2 million. Whether you are a fast-growing company, a start-up or a company unable to obtain conventional funding, we can likely help.

Invoice factoring, also simply referred to as factoring, is the process of selling your B2B accounts receivables (customer invoices) to a specialized company (‘factor’) who will give you the majority of that cash upfront. You’ll be able to use that capital for whatever purpose you need — instead of waiting the 30, 60 or 90 days you’d usually be stuck with. Once the factoring company collects payment for the invoice, they’ll release the additional funds to your company minus an agreed-upon reserve fee. That’s it – you can continue to factor new accounts receivables to keep your working capital topped up and your high-growth strategy on target.

For companies that have an existing bank facility, LCSS can work with them to provide additional top-up financing when needed. Many businesses will have a traditional bank loan for their base financing and then use a factoring partner as the business grows. Other companies will work with their factoring partner first to grow their business at a faster rate, and eventually, graduate on to add traditional bank financing.

For more information on invoice factoring, purchase order financing or asset-based lending finance solutions, please call Jack Smart at 403.201.0041. Helping Calgary businesses succeed together for over 15 years.