Liquid Capital
of Northeast Ohio

Efficient Business Cash Flow
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    ACCOUNTS RECEIVABLE
                      FINANCING FACILITY
Fast and flexible
funding when your business
needs it
Copyright  © 2006-2007  Liquid Capital of Northeast Ohio. All rights reserved.
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ABOUT THE FACTORING PROCESS

The factoring process is simple. Factoring is the
purchase of accounts receivable at a discount. It is not a
loan and does not appear on the balance sheet as debt.
.As a business owner, you sell your receivables to Liquid
Capital and receive an immediate infusion of cash based
on those invoices. You can receive up to 85% of the
invoice value immediately! With a pre-arranged fee
structure in place, you know the cost and can decide
how many invoices to sell and to what extent funding is
required.

HERE’s HOW THE PROCESS WORKS:

  • Customer orders a product or service from the
    Client company.
  • Client ships the product or performs the service
    for the Customer.
  • Client prepares an invoice to bill their customer.
  • Client sends invoices to the Factor to receive
    immediate funding. For example, Client factors
    $100,000 at an 80% advance rate and a 4% fee.
  • Factor verifies the validity of invoices and
    performs credit checks on new customers before
    purchasing the invoices.
  • Client receives monies from their funding request,
    typically the next business day.  From the example
    above, Client receives $76,000.
  • Factor will perform collection calls to ensure
    Customers pay their invoices.
  • Customer pays invoice to Factor. The Factor pays
    off the advance on that invoice and deducts any
    additional fee that is due and any adjustments
    made by the Customer.
  • The remaining funds from the Customer’s
    payment are returned to the Client.
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