product description target client facility size · factoring factoring is a type of business...

PRODUCT MATRIX

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 $2 million.

Asset BasedLending (ABL)

ABL is a form of commercial financingwhere a client’s collateral such as accountsreceivable, 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.

ExportFinancing

ABL is a form of commercial financingwhere a client’s collateral such as accountsreceivable, 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.

EquipmentLeasing

Equipment leasing is the process of securing theuse of computers, machinery and other types ofequipment under a lease for a specific period oftime. There is often a buy-out provision at the endof the lease term. Equipment leasing can providea client with additional working capital withoutimpacting 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 lease from $25,000 to $1 million.

Working Capital Advance

Cash advances are provided based on the expected future revenues of a business in light of recent 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.

Purchase OrderFinance (PO)

Purchase order financing is used to fund the production or importation 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.

Purchase FinanceProgram (PFP)

PFP is a financing solution that helpsbusinesses procure goods or equipmenton more favourable terms than offered by the client’s supplier. The PFP financing does not interfere with the client’s existing financing.

Clients typically tap into this financialsolution 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 $500,00.00 to over $25 million.

Typical purchase activity of $5,000 to over $500,000 per month on a revolving or a spot basis.

Top Up Financing

Top Up Financing is a highly-flexible financing option that provides a lump sum advance based on the reserve amount of your A/R—a number that can amount to between 75% and 100% of one month’s revenue. This solution is only available to existing A/R factoring customers.

Small business that require capital to fund a time sensitive business opportunity but don’t have any new invoices in the pipeline to qualify for additional factoring.

Typical advances range between 75% to 100% of one month’s revenue.

Revenue Based Funding

Revenue-based financing allows the client to inject capital into their business in return for a percentage of its revenue. Payments rise and fall with the performance of the business and continue until the initial capital plus a predetermined amount is repaid. These payments are expected to last about 2 to 5 years.

Small or medium sized business that do not qualify for factoring and have been in business for at least three years. Annual revenues must be greater than $500,000.

Typical advances range from $200,000 to $2,000,000

DESIGNING AGROWTH STRATEGYA LIQUID CAPITAL SUCCESS STORY | PEHR DESIGN

With 5X sales growth and an improved balance sheet, Perren credits A/R factoring and PO financing from Liquid Capital for Pehr’s graduation to traditional bank financing. Without a doubt, Pehr Designs is a global lifestyle brand poised for a bright – and stylish – future.

Inspired by a shared love of decor and design, long-time friends Jennifer Kelly and Rebecca Perren launched Pehr Designs in 2010, a lifestyle brand offering stylish home accessories and nursery décor. Carried by well known retailers like Anthropologie and Indigo Books, the line is also popular with a growing international clientele.

With products designed in Canada and responsibly produced in India, Pehr Designs has enjoyed rapid expansion both domestically and internationally. By 2015, orders flooding in from the U.S. accounted for 80% of sales.

Opportunity was knocking, but Pehr faced a serious challenge. Although the start-up company could fund smaller accounts with personal credit built on existing business relationships, its bank line of credit was proving insufficient to carry the new business. “Business was on a roll, and we were getting larger exclusive POs from customers,” says Pehr co-founder Rebecca Perren. “We needed to take commitments to factories, and the bridging period was hard for us to manage.”

The company urgently required a viable, short-term solution to finance continued long-term business growth. After researching several financing alternatives, Pehr Designs chose Liquid Capital’s PO financing and A/R factoring solutions.

“WE CONSIDERED OTHER ALTERNATIVES, INCLUDING OTHER FACTORING COMPANIES. BUT ULTIMATELY, WE CHOSE LIQUID CAPITAL BECAUSE THEY TOOK THE TIME TO HELP US UNDERSTAND THE PHILOSOPHY BEHIND FACTORING AND REMAINED INVOLVED EVERY STEP OF THE WAY.” Rebecca Perren, Pehr co-founder

OPENING DOORS TO LARGE RETAIL CLIENTS New to factoring and skeptical at first, Perren marvels at the time and support Liquid Capital invested in allaying their concerns and explaining factoring plus PO financing, calling it pivotal in ensuring their comfort level with this new approach to financing. “Liquid Capital helped us access cash up front, made payments when needed, improved our timing to get receivables and set up payment cycles with our factories to get the business moving,” Rebecca reports.

A/R factoring also gave Pehr the financial ability needed to land and service big retail customers, an important plank of its growth strategy that accounted for about 50% of its business.

During an 18-month period from 2014 through 2016, Liquid Capital factored over $900,000 in accounts receivable to cover inventory and operating costs. PO financing provided an additional $250,000 to purchase raw materials. In total, there were over 50 fundings.

A CRUCIAL “FACTOR” IN MAINTAINING INVENTORY LEVELSCalling Liquid Capital a “real partner in helping us grow our business,” Perren praises their ability to help Pehr land new accounts, maintain sufficient levels of inventory and keep production rolling to meet future demand.

“Most of our products are sourced from India, so PO financing helped us maintain wholesale inventory levels and then factoring helped speed up payment timelines when the goods arrived,” Perren notes.

DESIGNING AGROWTH STRATEGYA LIQUID CAPITAL SUCCESS STORY | PEHR DESIGN

Perren credits factoring for Pehr’s ability to pay the factories on time. ”If the factories producing the goods are not paid on time, there is a domino effect,” Perren explains. “Deliveries come in late, causing inventory levels to drop, which translates into unrealized sales.”

The hands-on service and support didn’t stop there. When Liquid Capital took over Pehr’s collections process, they worked hard to allay the company’s concerns to ensure Pehr felt comfortable with the process and the integrity of the operation. They also helped Pehr set up the infrastructure required to track, manage and maintain the accounting paperwork.

“FACTORING IS STILL RELATIVELY UNKNOWN AND PEOPLE ARE UNCERTAIN ABOUT WHAT IS INVOLVED. FOR US, PO FINANCING AND FACTORING MADE IT POSSIBLE TO GET THROUGH A 12-18 MONTH PERIOD WHERE WE NEEDED TO KEEP DRIVING BUSINESS GROWTH THE WAY WE WANTED TO.” Rebecca Perren, Pehr co-founder

STRESS-FREE BRIDGE TO BANK FINANCINGWith financing in place, Pehr Designs continues to reach more customers with its line of sophisticated home accessories and children’s products.

According to Perren, PO financing coupled with A/R factoring is the ideal solution for maintaining inventory and production when sales are high but credit is tight. She calls it most beneficial for companies that have POs they otherwise would be unable to service. Pehr has been able to drive more business and receive larger orders – all with a “lot less stress.”

“While factoring is not the cheapest option, it provides the financing needed to accept business from larger customers without requiring advance deposits,” Perren states. Plus, “Liquid Capital has been attentive and easy to work with. And they have been great in handling our shift to bank financing.”

With 5X sales growth and an improved balance sheet, Perren credits A/R factoring and PO financing from Liquid Capital for Pehr’s graduation to traditional bank financing. Without a doubt, Pehr Designs is a global lifestyle brand poised for a bright – and stylish – future.

“HAVING SEEN HOW WELL IT WORKED FOR US, I THINK CANADIAN BUSINESSES SHOULD TAKE ADVANTAGE OF PO FINANCING AND A/R FACTORING WHEN THEY DON’T YET QUALIFY FOR BANK FINANCING. IT’S EASY, EFFICIENT, THE PROCESSES ARE VERY CLEAR—AND IT REALLY HELPED OUR BUSINESS GROW.” Rebecca Perren, Pehr co-founder

“WE DELIVER” DESCRIBES BOTH SIDES OF A GREAT PARTNERSHIPA SUCCESS STORY | OVERNIGHT EXPEDITE

Liquid Capital’s Accounts Receivable Factoring solution facilitated growth for Overnight Expedite by financing $21 million in invoices and more than 1,400 customers.

In 2007, Alberta was booming. Based in Fort McMurray, Canadian courier service Overnight Expedite was a growing company with a niche market, delivering everything from documents to fully loaded skids with goods from southern to northern Alberta and back – overnight.

With business brisk, the company needed financing to ensure payroll and other operating expenses were met while it waited for customer payments. At the same time, its small staff faced major challenges, not only in simply getting invoices out in a timely manner but in managing the entire accounts receivable (A/R) process.

Overnight Expedite knew it had to do something to address its combined need for financing and accounts receivable management. The company concluded it would have to restructure and streamline some core business functions and, during those discussions, it began looking into the option of “factoring”.

“We first met with Liquid Capital in October 2007. At the time, we had just added three new computer systems; were getting another truck and needed more; and were trying to hire people – during a serious Alberta talent crunch – to handle invoicing and collections, which had grown to 300-400 invoices per month.” Rob Kessler,Owner, President, Overnight Expedite

ACCOUNTS RECEIVABLE FACTORING ADDRESSED A RANGE OF GROWTH-RELATED FINANCIAL AND OPERATIONAL NEEDS Overnight Expedite researched its options thoroughly and concluded that Liquid Capital’s A/R factoring solution – along with their ability to provide local representation, service and support – delivered the most streamlined, realistic approach to the company’s needs.

Overnight Expedite’s A/R situation provided some factoring challenges due to the many small invoices it routinely issued, but it soon worked out an arrangement where Liquid Capital would purchase and manage 100% of its accounts receivable. The first funding deposit of $64,000 was made quickly – by November 2007 – signaling the start of what would prove a strong, productive, lengthy relationship.

Liquid Capital went on to fund Overnight Expedite’s payroll every two weeks for almost eight years, with 200-350 customers on the books at any given time. From Overnight Expedite’s perspective, having a team to handle invoicing – and particularly to make the follow up/collection calls that might otherwise have been neglected – was vital to sustaining the company’s growth and long-term vision.

Ultimately, the A/R factoring solution financed $21 million in invoices and more than 1,400 customers, including everything from family-run restaurants, to large oil and gas companies, to major construction and engineering firms.

THE BENEFITS OF PARTNERSHIP EXTEND BEYOND FINANCIAL HELPWith the time to focus on business and the capital to ensure payroll and other operating expenses were covered, Overnight Expedite was able to take on two large line-haul contracts – with FedEx and UPS – that doubled its business volume. Soon after, it was able to expand into a number of Alberta communities independently – without having to rely on line-haul business from other companies.

“WE DELIVER” DESCRIBES BOTH SIDES OF A GREAT PARTNERSHIPA SUCCESS STORY | OVERNIGHT EXPEDITE

Overnight Expedite was particularly impressed that Liquid Capital was not only willing and able to take on the large number of small invoices (some under $50), but that they continued buying and managing those low value invoices throughout the relationship. The company never had to set up or outsource an A/R department, and Liquid Capital was able to get Overnight Expedite’s customer payment cycle down to 45 – 60 days across the board.

GROWTH WAS THE BYWORD OF THE DAYDuring their eight-year partnership, the company not only grew its business at an outstanding pace, but was able to purchase other local couriers whose payrolls it also funded through Liquid Capital. And since, Overnight Expedite never carried a balance on its own vendor accounts, Overnight Expedite saved significantly on ongoing interest charges. With its success, the company has now moved to a large operating credit line at a chartered bank.

“When we started working with Liquid Capital,” says Overnight Expedite’s co-owner and growth guru Rob Kessler, “we had 12 trucks, 20 staff and serviced 20 communities in Alberta. Now we have 80 trucks, almost 120 staff and deliver to over 120 communities and 200 job sites.” Moreover, annual sales grew from $206,000 in 2007 to $8 million in 2015. Along with the business growth achieved, the Liquid Capital relationship led to some valuable vendor networking opportunities.

Leveraging its strength in Northern Alberta, Overnight Expedite recently won a 10 year contract with UPS.

“We were able to grow substantially and sustainably using Liquid Capital products. Working with Liquid Capital – whom we came to consider a true financial partner – was one of the best decisions I ever made. We couldn’t have done it without them.” Rob Kessler,Owner, President, Overnight Expedite

COMPANIES HAVETO “EAT” TOOA SUCCESS STORY | ENC

Liquid Capital came to the table with an A/R (accounts receivable) factoring solution in less than a week and delivered initial funding in less than two.

Founded in 2003, ENC (Eating New Creations) is a food services company committed to supplying hotels, airlines, cafeterias and a range of institutions with high quality, pre-made, gourmet sandwiches. And that’s exactly what it was doing – until the loss of its main source of capital threatened the company’s viability.

In its early years, ENC’s founder focused on making the best sandwiches possible while a corporate partner provided the line of credit that fed the company’s working capital needs. When the partner left – taking the line of credit with him – the company was left with $2-3M in locked-in yearly sales, but no money to manage day-to-day operating costs and no staff with the time to source appropriate financing. Client payments were on a 30 to 45 day schedule, but ENC had to purchase raw ingredients every day or two while managing a weekly salary cycle.

RECEIVABLES IN THE PIPELINE BUT AN IMMEDIATE WORKING CAPITAL SHORTAGE? The situation was ripe for a factoring solution. But how was a busy company with limited resources going to find and implement the right solution from the right company? The first step was bringing in a CFO who understood the issues – and saw the future.

“ENC had significant issues in areas such as cash flow and employee head count, but one of its key suppliers said that if these problems could be resolved, they’d buy ENC. This was a great opportunity, but as new CFO, I had to keep the company going until the appropriate changes could be made and the sale effected.” Robert S. Kheir, Principal, Interim CFO, ENC

A/R FACTORING: SHORT-TERM LIFELINE FOR LONG-TERM SUCCESS

The fact was, ENC was a few weeks away from possible creditor protection. It was having trouble meeting payroll, and the financials did not support getting a Tier 1 bank loan. A creative solution – outside the typical financing sphere – was required.

Rob Kheir, the interim CFO brought in to execute on turnaround, was familiar with Liquid Capital from his time as an investment banker and was hearing rave reviews about their capabilities. “ENC was in a difficult situation, and I needed cash real quick – I’m talking days, not weeks or months.”

Liquid Capital came to the table with an A/R (accounts receivable) factoring solution in less than a week and delivered initial funding in less than two. Under the solution, Liquid Capital would purchase and manage ENC’s accounts receivable, providing the company with critical working capital in the form of an initial $250,000 facility.

ENC was often issuing 400 to 500 invoices per week to as many as 20 different customer accounts. The sheer volume and relatively small size of these invoices presented a significant factoring challenge, but ultimately, Liquid Capital factored approximately $2.4M in invoices over 70 fundings – which worked out to funding ENC roughly twice a week.

“Liquid Capital factored ENC’s accounts receivable from April 2014 through February 2015. It’s fair to say that if this solution hadn’t been brought onboard, ENC may well have had to close its doors.” Robert S. Kheir, Principal, Interim CFO, ENC

COMPANIES HAVETO “EAT” TOOA SUCCESS STORY | ENC

THE BENEFITS OF A/R FACTORING GO BEYOND SIMPLE FINANCING

Of course, the core benefit of A/R factoring is that companies acquire working capital that they need – sometimes desperately. But factoring solutions also address a frequent business challenge: lack of follow-up on existing invoices. When businesses – especially small, under-resourced ones –don’t collect receivables on time, their ability to meet theirpayables becomes compromised.

Liquid Capital can help address these and other management issues. For instance, by reviewing receivables regularly, Liquid Capital can help companies determine which customers are truly valuable – that is, which always pay, which usually pay, and which are not paying and to whom delivery could potentially be stopped. By relieving companies of the pressure of managing their collections, A/R factoring also enables them to focus consistently on their products and services.

“Some people initially balk at Liquid Capital’s interest rates, but they are failing to take into account the cost of hiring a full-time accounts receivable clerk to stay on top of cash collection. Once you run those numbers, the value proposition makes much more sense.” Robert S. Kheir, Principal, Interim CFO, ENC

ENABLING THE NEXT PHASE

From being on the verge of padlocking the doors to being successfully purchased by a $14B multi-national conglomerate in just one year, ENC’s story is a testament to the value a factoring solution can deliver in the right circumstances. ENC had a good business and a promising growth trajectory that was aligned with its market, but management around costs, collections and efficiencies was lacking. With A/R factoring providing financial support during the restructuring process, the company was saved, jobs were preserved and a multi-win transaction was completed.

“Liquid Capital’s services provided the breathing room required to put secure foundations in place to underpin the company’s future growth. When the big banks couldn’t help—Liquid Capital was there.”Robert S. Kheir,Principal, Interim CFO, ENC

WORKING CAPITAL ADVANCESHORT-TERM FINANCING FOR ANY BUSINESS NEED

Perhaps your business is in need of short-term funding to hire a new employee, buy equipment, purchase new inventory or open a new location. Or you may require extra money to simply pay an overdue tax bill. Whatever the reason, the future success of your company depends on fast, flexible access to working capital. Yet, for many growing companies, conventional credit financing with fixed payment terms is not always an available option. So what do you do?

Consider converting your future sales into capital you can invest in your business right now.

A working capital advance may be the right solution if you need quick access to working capital, and your gross sales are predictably at least $10,000 per month.

TAP INTO THE VALUE OF YOUR FUTURE SALES A working capital advance is neither a loan nor a factoring solution based on accounts receivable. Instead, it is a highly flexible financing option that provides working capital based on expected future sales.

Companies that have been in business for at least six months, possess good business fundamentals and have not had any bankruptcy are eligible for a working capital advance. Once your gross monthly sales have been verified, we will advance up to 125% of your average monthly sales volume as a lump sum that is deposited into your bank. The advance is repaid daily or weekly as a fixed payment, usually within 12 months or less.

A working capital advance is approved much more quickly than a typical loan, giving you fast access to the capital you need, when you need it.

SIMPLIFIED APPROVAL AND REPAYMENTQualifying for working capital is relatively simple and is available to virtually every industry – including those some other companies consider difficult to finance, such as transportation, construction and insurance. Advantages include:

There is no restriction on how the money can be used by your business. You can even repay early with a discount that drops as your advance reaches maturity.

Business fundamentals matter more to us than your credit score. We offer approvals across the credit spectrum, often within hours. Applicants can qualify for 80-125% of their average historical monthly revenue (based on four months of bank statements).

NOT RESTRICTIVE

QUALIFYING IS EASY

WORKING CAPITAL ADVANCESHORT-TERM FINANCING FOR ANY BUSINESS NEED

LIQUID CAPITAL WORKING CAPITAL ADVANCES DELIVER A VARIETY OF BENEFITS• Grow your business quickly and with minimum hassle by creating access to an additional, recurring revenue stream

• Enjoy a fast and less restrictive underwriting process than that of a traditional loan

• No collateral is required, and deals do not need to be guaranteed with real estate, receivables or personal assets

• There are no long-term contracts or hidden fees and terms

• Repayment amounts can either be fixed or a percentage of sales, so payments are reduced when you are in a slow sales cycle

• Our extensive North American footprint means you always deal with a local representative who knows your business and your market

If conventional bank credit is not available to you, and you need short-term financing to pay a bill or fund a new opportunity, consider a working capital advance.

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 across 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. We will help you grow your business.

TOP-UPFINANCINGSEIZING BUSINESS OPPORTUNITIES JUST GOT EASIER

No matter what your business or industry, most growing companies like yours experience growing pains – situationswhere cash flow doesn’t quite square with expenses. Even with good sales, solid customers and a healthy ledger ofaccounts receivable, you find yourself short on the working capital needed to purchase new inventory and equipment,expand office space or take advantage of a business opportunity – all of which prevents you from unlocking the truepotential of your business.

Perhaps you have to meet payroll or seize a one-time opportunity, and you literally can’t afford to wait.So what is the solution?

MAKE THE MOST OF YOUR ACCOUNTS RECEIVABLEFast access to capital for A/R factoring clientsYour A/R factoring solution with Liquid Capital allows you to receive 80% or more of the value of your accounts receivable.However, there may be times when you need an additional lump sum to cover new business costs. While your accountsreceivable are strong, you may not qualify for additional factoring because the need for additional capital does not directlycorrelate with new invoices.

Our top-up financing solution is a highly flexible financing option that provides a lump sum advance based onthe reserve amount of your A/R. We will advance between 75% and 100% of one month’s revenue as top-upfinancing to existing A/R factoring customers – often within hours.

TOP-UP FINANCING CAN BE USED FOR ANY BUSINESS NEED OR EXPENSE:

• Buy new inventory• Purchase or repair equipment• Renew licenses• Hire staff• Pay past due taxes

GET APPROVED WITHIN HOURS Top-up financing is approved much more quickly than a typical loan, giving borrowers fast access to much-needed capital.The approval process is straightforward and simple.

We offer approvals within hours andapplicants can qualify for 75% to 100%of one month’s revenue (based on fourmonths of bank statements).

A lump sum of between $10,000 and$150,000 will be deposited into yourbank, depending on your averagemonthly revenue. There is no restrictionon how the money can be used by yourbusiness.

Top-up financing is repaid with small,regular payments that are typically paideither daily or weekly over a periodof 3 to 12 months. Early prepaymentdiscounts are available.

QUALIFYINGIS EASY

NORESTRICTIONSON USE

EASYREPAYMENT

TOP-UPFINANCINGSEIZING BUSINESS OPPORTUNITIES JUST GOT EASIER

WORKING CAPITAL ADVANCES DELIVER A VARIETY OF BENEFITS• Grow your business quickly and with minimum hassle by creating access to an additional, recurring revenue stream

• Enjoy a fast and less restrictive underwriting process than that of a traditional loan

• No collateral is required, and deals do not need to be guaranteed with real estate, receivables or personal assets

• There are no long-term contracts or hidden fees and terms

• Repayment amounts can either be fixed or a percentage of sales, so payments are reduced when you are in a slow sales cycle

• Our extensive North American footprint means you always deal with a local representative who knows your business and your market


PURCHASE FINANCING PROGRAM (PFP)A STRONG CREDIT RATING RATES A STRONG FINANCING SOLUTION

Deposits and cash on delivery (COD) payments to suppliers can put companies, especially those that are equity challenged, in a real bind. For example, you see an opportunity where acquiring inventory quickly can drive growth, or you have an opportunity to take advantage of a limited time purchasing opportunity. However, your supplier won’t ship without a guarantee of payment at the time of shipment. Financing the cost of that payment and the time the goods will spend in transit will leave you short of working capital for day-to-day operations.

Your credit is strong, but you have maxed out your bank operating facility or, you don’t want to tie up or increase your financing for a one-time transaction (not to mention that bank response may be both reluctant and slow). For companies in similar situations that may not have accounts receivable they can or want to borrow against, augmenting bank credit with our Purchase Financing Program (PFP) may be the right solution.

IF YOUR CREDIT IS GOOD, YOU’RE GOOD TO GO The majority of our short-term financing solutions allow equity- and credit-challenged companies to secure financing based on existing assets such as accounts receivables or inventory. Our PFP is our only short-term financing solution that is based on a client’s credit status.

Deposits and cash on delivery (COD) payments to suppliers can put companies, especially those that are equity challenged, in a real bind. For example, you see an opportunity where acquiring inventory quickly can drive growth, or you have an opportunity to take advantage of a limited time purchasing opportunity. However, your supplier won’t ship without a guarantee of payment at the time of shipment. Financing the cost of that payment and the time the goods will spend in transit will leave you short of working capital for day-to-day operations.

If your credit is strong, we will, upon completing due diligence, underwrite and finance your in-transit inventory – no matter where your supplier is located or whether the goods are for resale, inventory or consumption. Liquid Capital will provide a letter of credit to your supplier if required. You receive your goods and the transaction becomes final once you pay the PFP invoice as negotiated in the terms of our agreement.

By helping businesses take advantage of timely opportunities – without affecting existing covenants – the PFP has become a highly popular solution for businesses with acute needs and good credit.PFP PROGRAM - 5 STEPS

PURCHASE FINANCING PROGRAM (PFP)A STRONG CREDIT RATING RATES A STRONG FINANCING SOLUTION

OUR PURCHASE FINANCING PROGRAM DELIVERS A RANGE OF BUSINESS BENEFITS:

Our best-in-class service is delivered through a local distribution network. We have the most points of presence of any working capital provider in North America, meaning you deal with local decision makers who understand your market, your business and your needs.

Ensure financing challenges won’t limit strategy and opportunity. Get the goods you need, even if you don’t have the capital on hand to fund supplier payments or the cost of goods in transit.

Get a financing solution that is efficient, transparent and tailored to you. There are no complicated contracts, hidden costs or conditions on storage or delivery – just a simple, fast, flexible financing solution that won’t impact existing bank or other lender security.

Negotiate or participate in supplier discounts. Take advantage of procuring goods, equipment or services at more favourable payment terms without interfering with your existing working capital financing structure.

Your financing solution is based solely on your credit worthiness. You have done business the right way and developed a strong credit rating. Now you can take advantage to leverage opportunity as it arises.


PURCHASE ORDER (PO) FINANCINGAN ADVANCED SOLUTION FOR ADVANCE PAYMENT CHALLENGES

Supplier payment requirements can be a major issue for companies that have little or no equity to work with. It is not uncommon for suppliers to demand payment in full at the point of shipment. They may even demand a guarantee of that payment (i.e. letter of credit) before they will start producing your product.

You may have a substantial order book, but if you have to pay for the product in advance, you’ll be financing those sales from shipping through to storage and customer delivery.

This can create a serious working capital gap as you wait for the cash to come in – and you still have to manage the ongoing costs of running a business.

When your DSO (days sales outstanding) is 60-90 days, but your DPO (days payable outstanding) is zero, you will have little chance of realizing opportunities that depend on advance payment to suppliers – even ones that have been secured in most other respects.

PO FINANCING – YOUR POS CAN PAY OFF For companies receiving finished goods from their suppliers, Purchase Order (PO) financing solutions help you meet supplier requirements and bridge the sometimes extensive gap between when a product is ordered and when a customer receives and pays for it. And it’s all based on the quality of your POs.

If you have a PO out to a supplier, Liquid Capital can provide a letter of credit the supplier can draw on for payment – pending an inspection of the goods for quality and quantity at the point of shipping – essentially financing up to 100% of the cost of the product until it is in the customer’s hands.

Typically, PO financing works in combination with our Accounts Receivable factoring solution, which kicks in once the actual sale to the customer becomes final. Factoring provides you with working capital financing based on the value of your accounts receivable and is used to pay off your PO financing obligation.

PO financing funds supplier requirements and goods in transit; factoring then finances accounts receivable to pay out the PO financing debt.

Factoring provides clients with 80% or more of the value of credit-worthy invoices. These funds can be used to finance working capital requirements.

WE ASSUME, MANAGE AND COLLECT THE FINANCED DEBTS, AS WELL AS PROVIDE CLEAR, ACCESSIBLE REPORTING TO KEEP YOU UP TO DATE ON THE PROCESS.

PURCHASE ORDER (PO) FINANCINGAN ADVANCED SOLUTION FOR ADVANCE PAYMENT CHALLENGES

PO FINANCING - 6 STEPS

PO FINANCING DELIVERS A RANGE OF BUSINESS BENEFITS:

Our best-in-class service is delivered through a local distribution network. Liquid Capital has the most points of presence of any working capital provider in North America, meaning you deal with local decision makers who understand your market, your business and your needs.

Ensure that the inability to secure supplier credit doesn’t limit your growth strategy. Most suppliers will not ship to customers they do not know or that don’t have excellent credit. If you are buying finished goods and selling to credit-worthy customers, you can finance the purchase of goods without tying up your own money.

Fast service means opportunities and obligations don’t have to wait. Upon approval, financing is available immediately, allowing you to purchase your product quickly and get the production/shipping process underway.

Get full reporting transparency, with access to 24-7 online support. We take accountability seriously. You can see invoice images, supporting documents, collection notes and payment details, so you always know the status of your transaction.

Quality assurance is part of the bargain. At the point of shipping, your goods are inspected by an international agency to ensure quality, quantity and compliance.

Your financing solution is based on the quality of your POs. You’ve worked hard to develop a strong customer base. With PO financing, you can leverage the future value of your POs.


COMMERCIAL EQUIPMENT FINANCE AND LEASINGWHAT IF YOUR NEW EQUIPMENT PAID FOR ITSELF? IT’S NOT A MIRAGE.

For companies facing particularly challenging equipment acquisition needs, equipment finance or leasing can be a good financing alternative. If your financial situation and credit are good, and you know the equipment will help generate immediate income, equipment finance and leasing may be your solution – especially as we include the anticipated profits from your new equipment into our credit approval process.

Whether your business is recently established, fast growing or somewhere in between, new equipment is often critical to achieving your goals or maintaining your success. However, purchasing equipment outright – as you need it – is not usually a viable option, as the scope and timing of such acquisitions are dictated by your available cash.

Depending on your industry, you may require transportation, construction, manufacturing, printing or other types of equipment to help your company grow. Your business may need new computers, office furniture and equipment, phones systems or back-shop equipment to operate more effectively. And in today’s economy, companies of all kinds and sizes are looking to refurbish their lighting and water equipment to save energy, reduce overhead costs and improve their environmental footprint.

Banks, however, aren’t always amenable to financing equipment – and such acquisitions are often too small or too big for their liking. Moreover, you may want to preserve your bank loan capacity for other operational needs or growth opportunities. If that’s the case, you may need to consider an alternative financing solution. So what do you do?

FINANCING OR LEASING ALLOWS YOUR EQUIPMENT TO PAY FOR ITSELF

Equipment finance and leasing lets you use the earnings you generate from your new equipment to pay the monthly payment, cover additional overhead costs and contribute to your profits. This means you can save your cash, lines of credit or other capital-depleting resources for other profit-earning opportunities.

Essentially, once your application has cleared, Liquid Capital acts as your financing broker to find the right leasing company for you based on the equipment you are acquiring. Liquid Capital has relationships with many of the top North American equipment finance companies, many of which only deal through intermediaries like Liquid Capital. The leasing company then finances you by purchasing the equipment; you lease the equipment over a fixed, negotiated term; and you then have the option to purchase the equipment when the lease expires – price and terms depending on which leasing option you select.

LEASING OPTIONS We can help you arrange the equipment leasing option that best suits your organization’s needs.

Purchase the equipment at the end of the lease for a small, pre-negotiated price.

Purchase the equipment at the end of the lease for a larger pre-negotiated price or renew the lease and get more time to pay it out.

Your lease payments are for the use of the equipment only. You can negotiate to buy the equipment at the end of the lease, or you can return the equipment to the lessor (subject to meeting required return conditions).

You make leasing payments according to a contract, however, you are responsible for all taxes.

LEASE-TO-OWN

LEASE-TO-OWN WITH A STRETCH LEASE OPTION

FAIR MARKET VALUE LEASE

EQUIPMENT FINANCING CONTRACT (MAINLY US)

COMMERCIAL EQUIPMENT FINANCE AND LEASINGWHAT IF YOUR NEW EQUIPMENT PAID FOR ITSELF? IT’S NOT A MIRAGE.

BENEFITS OF THE EQUIPMENT FINANCE AND LEASING SOLUTION• Grow your business more effectively by getting the equipment you need when you need it.• Use your cash and lines of credit for other profit-earning opportunities.• Our lending companies include the anticipated additional profits from the new equipment when assessing your ability to pay.• Our brokerage model provides a choice of financing companies, so you get the best fit for your financial profile and the equipment needs.• Our extensive North American footprint means you always deal with a local representative who knows your business and your market.• Take advantage of potential tax benefits depending on how the lease is treated on your financial statements.

IF YOUR CURRENT FINANCING OPTIONS AREN’T ADEQUATE FOR YOUR BUSINESS AND YOU LIKE THE SOUND OF PURCHASING EQUIPMENT FOR ALMOST NO OUTLAY OF EXISTING CAPITAL, CONSIDER OUR EQUIPMENT FINANCE AND LEASING SOLUTIONS.


ASSET-BASED LENDING (ABL)KICK YOUR ASSET VALUE UP A NOTCH

Accounts Receivable Factoring – essentially selling your accounts receivable – is often a solution for companies in need of financing, but for larger companies with a stronger credit rating and more comprehensive financial reporting and internal controls (monthly financial statements, aged A/R and A/P summaries), Our Asset-Based Lending (ABL) solution provides an excellent financing option that is more cost-effective, flexible and discreet than factoring.

It is not always just small companies that find themselves long on orders but short on working capital. Many larger companies, with substantial client lists and sophisticated financial structures, still find themselves in situations where payables pre-date receivables. They simply don’t have the working capital to keep up. They may fall just shy of bank loan criteria, or if they do qualify, they have seasonal or otherwise time-sensitive capital requirements that the rigid structures of traditional bank loans can’t accommodate.

ABL IS ONE OF THE MOST FLEXIBLE, OPTION-RICH FINANCING ALTERNATIVES AVAILABLE, LETTING YOU SECURE FINANCING THAT INCLUDES – BUT GOES FAR BEYOND – THE VALUE OF YOUR ACCOUNTS RECEIVABLE.ABL: A STEP BEYOND ABL provides all the advantages of factoring when it comes to leveraging the value of your accounts receivable, as well as providing additional financing by leveraging all your assets - including inventory, equipment and real-estate.

Larger ABL clients with strong financial reporting and internal controls may qualify for non-notification financing. With non-notification, you handle invoicing and collection activities and are paid directly. Payments are then deposited into a “sweep account” (typically at your bank) from which Liquid Capital collects. Your client is not aware that Liquid Capital is handling your financial transactions.

A further advantage is that – since our risk is lower due to your good credit and strong financial reporting – your rates can be significantly lower than they would be with a pure factoring solution.

For smaller ABL clients, the advantages of factoring are combined with the ability to secure additional funding by including your inventory, equipment or real-estate. Although these deals may not qualify for non-notification financing, the client benefits by receiving a larger amount of funding than if it were solely an accounts receivable factoring solution.

HOW IT WORKS - ACCOUNTS RECEIVABLE

You sell products &services to yourcustomer.

Liquid Capital sends funds minus thereserve.

You sell your invoices toLiquid Capital.

You collect paymentfrom customerand forward toLiquid Capital.

Liquid Capital refunds reserve minus the discount fee and pays down the ABL advance.

ASSET-BASED LENDING (ABL)KICK YOUR ASSET VALUE UP A NOTCH

NOW ALL YOUR ASSETS CAN HELP GENERATE THE WORKING CAPITAL YOU NEED ABL provides all the advantages of factoring when it comes to leveraging the value of your accounts receivable, as well as providing additional financing by leveraging all your assets - including inventory, equipment and real-estate.

With ABL, you can secure loans against all of your assets – not just accounts receivable – including inventory, equipmentand real estate (both residential and commercial).

INVENTORYRaw materials, work in progress (WIP) and finished goods, can all generate much needed workingcapital. Margin rates (the percentage that Liquid Capital will advance) will vary depending on the nature of the inventory.

EQUIPMENTEquipment, generally valued by a third party appraisal will typically generate funding up to 75% of liquidation value.

REAL ESTATE Valued through third-party appraisals or letters of opinion, real estate with strong sales potential can generate up to 75% of the appraised value, less any prior encumbrances such as a mortgage.

ABL DELIVERS A VARIETY OF BENEFITS:• Improved customer optics – your ABL solution is invisible to the end customer• Leverage multiple asset categories to generate extra capital as required• Rates are lower than with a pure factoring solution• We don’t believe in long-term contracts or hidden fees• Available borrowing amounts are typically calculated weekly (not monthly as with a bank) so if you’re in a strong growth cycle, your ability to borrow increases more quickly•Our extensive North American footprint means you always deal with a local representative who knows your business and your market


HOW IT WORKS - OTHER ASSETS (IE. INVENTORY, EQUIPMENT, REAL ESTATE)

Liquid Capital sends funds to the client

Liquid Capital calculates how much the client can borrow.

Liquid Capital assigns advance rates to the various asset categories.

A value is assigned to these assets via appraisals or other means.

You may have other assets such as inventory, equipment or real estate.

ACCOUNTS RECEIVABLE FACTORINGLEVERAGE FUTURE SUCCESS – NOW

Not every company is awash in equity and working capital. In fact, at some point, most growing businesses encounter situations where cash flow does not align with expenses. You have sales on the books – to dependable customers – but employee wages, lease payments, inventory purchases and other ongoing costs won’t wait. And you have other strong sales opportunities you simply won’t be able to realize without having working capital at hand.

It doesn’t seem right that a company that’s selling successfully to great customers, with a robust ledger of accounts receivable, might find their business at risk because of a working capital crunch. But that’s business, right?

Not necessarily.

If you need quick access to financing and have a strong portfolio of credit-worthy B2B invoices, but don’t meet the full spectrum of requirements for a standard bank loan, Accounts Receivable factoring may be the financing solution for you.

Factoring puts your accounts receivable to work for you now.

Our solution isn’t contingent on how much equity you have, financial ratios or your overall financial strength. The financing is entirely based on the strength of your accounts receivable (A/R).

You will receive 75% or more of the value of your accounts receivable. You can use the funds to finance growth or meet expense obligations. Your only limit is your ability to sell to credit-worthy customers. Liquid Capital will assume, manage and collect the financed invoices, as well as provide clear, accessible reporting to keep you up to date on the process.

When the Bank says “no”, factoring could provide you the funds you need - in a very short time.

IF YOUR ACCOUNTS RECEIVABLE ARE STRONG, SO IS YOUR ABILITY TOGET THE FINANCING YOU NEED.

HOW IT WORKS

You sell products &services to yourcustomer.

Liquid Capital sends funds minus thereserve.

You sell your invoices toLiquid Capital.

Liquid Capital receives payment from yourcustomer.

Liquid Capital refunds reserves minus thediscount fees to you.

ACCOUNTS RECEIVABLE FACTORINGLEVERAGE FUTURE SUCCESS – NOW

ACCOUNTS RECEIVABLE FACTORING FROM DELIVERS A RANGE OF BUSINESS BENEFITS:

OUR BEST-IN-CLASS SERVICE IS DELIVERED THROUGH A LOCAL DISTRIBUTION NETWORK. Liquid Capital has the most points of presence of any factoring provider in North America, meaning you deal with local decision makers who understand your market, your business and your needs.

FAST SERVICE MEANS OPPORTUNITIES AND OBLIGATIONS DON’T HAVE TO WAIT. If you have to meet payroll or seize a one-time opportunity, you literally can’t afford to wait. We can often set up a factoring facility in less than a week.

GET FULL REPORTING TRANSPARENCY, WITH ACCESS TO 24-7 ONLINE SUPPORT. We take accountability seriously. You can see invoice images, supporting documents, collection notes and payment details, so you always know the status of your receivables.

WE DON’T BELIEVE IN LONG-TERM CONTRACTS OR HIDDEN FEES AND TERMS. You won’t find one- and two-year locked-in contracts or large termination or other unexpected fees with our receivables factoring solution.

AFFORDABLE CREDIT INSURANCE IS PART OF THE BARGAIN. Our ability to pass on credit insurance to our clients means they can reduce their credit risk at extremely reasonable rates. It’s a great way to limit risk related to both the business and personal guarantees.

ACHIEVE BETTER MANAGEMENT OF A KEY ASSET CLASS. Dealing with accounts receivable and collections issues isn’t the best way for a growing company to allocate time. We manage, collect and report on your A/R so you can focus on business.

YOUR LOAN IS BASED SOLELY ON THE CREDIT QUALITY OF YOUR CUSTOMERS. Banks look at financial ratios, equity and other factors to determine financing eligibility. With receivables factoring, if you have good customers, you have good credit.


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