Buying a Franchise

Just One Franchise: Liquid Capital Financing

Banking as an industry is going through some changes. More people are “unbanked”
or prefer alternatives to traditional banks, and alternative financial services are flourishing. Organizations from Walmart to the Post Office are stepping in to provide financial services, and Liquid Capital offers franchisees an opportunity to get in on this lucrative trend.

Liquid Capital offers small businesses a chance to trade uncollected invoices for cash, providing assistance through the ups and downs of business. Small businesses may find it hard to borrow working capital from a bank, even if only a relatively small amount is needed to keep the company afloat during a tough spell or to take advantage of an opportunity. This can be particularly challenging for companies whose customers pay in 30 days or 60 days, while the company has to make an investment to produce their goods before they receive those funds.

Many small businesses face the frustration of having plenty of money “out there” but not enough to meet payroll at the end of the week. Others may have a large order in the wings but need funds to ramp up production or to add staff before they can take on the order. They know that they might lose the order by delaying until they receive payments to provide enough capital to fill that order. Walking that kind of financial tightrope can be part of growth for healthy small companies.

Liquid Capital serves this kind of company, and many Liquid Capital Franchisees talk about the satisfaction of being able to help fellow business owners thrive… or sleep well at night.

Liquid Capital franchisees don’t lend money; instead they purchase credit-worthy receivables. Within days, a client can have 75-80% of the value of the receivables in hand. Once the funds are collected, the franchisee pays the client the remainder of the funds, less the fees Liquid Capital charges. This type of financing, known as “factoring,” provides a simple, low risk alternative to bank loans.

Factoring is an ancient concept and a proven business method, but it’s not well known. Liquid Capital franchisees have the opportunity to introduce the idea in their communities.

Liquid Capital is a multinational company, and the franchisor supports the franchisee with administrative help including underwriting and other paperwork, collections and credit checks, and loans. The franchisee sells the services, completes paperwork with the client, and verifies the invoices.

Liquid Capital also offers supporting financial services such as facilitating international orders and helping with financial goal setting, giving franchisees opportunities to keep in touch with clients and provide additional services in the future. Since each Liquid Capital franchisee has a territory of about 17,000 businesses, there is likely to be limited competition.

Minimum cash required is $100,000 and the total investment is $150,000 – $250,000. $250,000 is also the net worth requirement. The franchise doesn’t require lots of upfront investment in the premises, employees, or inventory, and the business can be run from home. Liquid Capital provides training and franchisees do not have to have prior financial industry experience.

Pending Request