Frequently Asked Questions

WHAT IS FACTORING?

Factoring is a specialized funding instrument that falls somewhere between Equity Capital and Bank Financing. The primary benefit of Factoring is that you neither increase debt on the balance sheet nor sell off equity. In fact Factoring tends to improve your balance sheet and cash position.
Global Factoring Volume exceeds $1.3 Trillion and has doubled in the last 4 years. Factoring is used by businesses of all sizes to provide added working capital on a just-in-time basis.
Factoring is a simple process. Factoring is the purchase of accounts receivable (invoices). Once you are set up with Liquid Capital of Colorado, you will submit invoices for funding. Liquid Capital of Colorado will advance you a high percentage (usually 75% to 85%) of the face amount of your invoices. As we receive the payments for your invoices (for the Account of Your Business), you will receive the remaining percentage of such invoices (known as the reserve) less our fee.
Factoring gives you immediate access to money tied up in accounts receivables to further develop your business and pay for operating costs.

WHY CHOOSE FACTORING?

Subject to credit approvals, FACTORING allows for immediate Funding to meet cash flow needs.
By purchasing receivables, we provide a cash injection of up to 85% of those receivables [less our fee].
There is no equity loss or debt to pay off.

HOW LONG DOES THE APPROVAL PROCESS TAKE?

Often, a term sheet can be issued within 24 hours of receiving a request, with the initial funding usually available in 2 to 3 days.
Factoring is NOT a loan - no debt to repay - balance sheets become more attractive - financial positions are solidified.

AFTER BEING SET UP, HOW LONG DOES EACH FUNDING TAKE?

Subsequent funding generally occurs within 24 hours of the receipt of your request and invoices, and in many cased the same day.

HOW ARE FEES DETERMINED?

Our fees are based primarily on your volume and average invoice size. Other factors that influence our fees include are the credit worthiness of your customers and the number of invoices.
For a free and confidential analysis of your business needs and fees please call us today at 303-774-7623.

DOES A CLIENT NEED TO SELL ALL INVOICES?

HOW OFTEN CAN I PROCESS MY RECEIVABLES THROUGH LIQUID CAPITAL OF COLORADO?

Our offices process invoices daily. Many clients will process a batch of invoices daily, weekly or every 2 weeks. It is entirely up to you to decide what works best for your business.
Our funding professionals can help you make a decision that works best for your company.

WHAT TYPE OF BUSINESSES DOES LIQUID CAPITAL WORK WITH?

Liquid Capital works with almost any business that sells products and services to other businesses or Governmental agencies.
We provide working capital to manufacturers, distributors, importers, exporters, construction trades and service providers in almost every industry.
This includes service companies, software companies, consultants, printing companies, trucking & transportation, oil & gas field operations and services, advertising, importers, exporters, cleaning & janitorial, distribution & supply, food & beverage, security, staffing and temporary labor, sign shops and many, many more. Please click here for a broader list of companies that factor.

WHY CHOOSE LIQUID CAPITAL OF COLORADO?

We provide Spot Factoring (purchase of single invoices) from as low as $10,000 per invoice.
We provide Full Factoring (purchase of multiple invoices) on monthly sales of $10,000 - $10,000,000.
We do not have long term contracts with minimums that can result in many hidden fees. You determine how much you would like to factor and when.
We also offer Asset Based Lending, Purchase Order Financing, Import financing, Inventory Financing and more.
Our State-of-the-Art on line systems allows you 24 hour Ð 7 day access to all management reports, copies of invoices, copies of customer payments, copies of checks and payment details. These reports are tied to a database that is updated instantly giving you up to the minute information. This system and our posting processes are likely superior to the information you currently have available.
You receive State-of-the-Art credit & collections processes and accounts receivables management which allows you to concentrate on growing your business.
We offer clients a completely personalized approach, one that is professional, hands-on and confidential.

HOW DO I GET STARTED WITH LIQUID CAPITAL OF COLORADO?