Terminology - LC Alternative Funding
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Terminology

Liquid Capital is a leading authority on business financing.

We understand that the language used to explain factoring and other alternative financing arrangements can sometimes seem a little perplexing. It’s a specialized discipline, and one that many North American businesses are only just beginning to learn about.

Here are some other terms you may come across as you research the tools and products best suited to your business needs.

Cash Flow from Financing

Do you need to increase cash flow and move money in or out of your business? Liquid Capital can provide cash flow from financing options.

Cash flow from financing is different from cash flow from operations. Cash flow from operations is how a business typically turns over cash through paying salaries and suppliers, adding value and selling their wares to customers. By contrast, cash flow from financing is non-revenue funding and is typically sourced from an outside party– such as Liquid Capital.

Sometimes you need cash flow from financing to put your business in position to increase cash flow from operations. When you do, call Liquid Capital. We understand what it takes for small and medium-sized businesses like you to succeed – because we’re small business people ourselves. Our company is built on a network of locally owned and operated Principal Offices, so whenever you’re talking to Liquid Capital, you’re talking directly to your cash flow from financing source. This flexibility allows us to provide unmatched client service that is uniquely local and reliable.

Frequently Asked Questions

What is cash flow from financing?
Cash flow from financing is a financial solution that allows you to increase your cash flow through financing obtained via an outside source such as Liquid Capital.

What is cash flow from operations?

Unlike cash flow from financing, cash flow from operations is how a business typically turns over their cash through sales and collections.

Freight Bill Financing

In the transportation industry, invoices typically aren’t paid until the shipment is received. If your business is fortunate, you may receive a partial payment in advance. But the waiting period between the times when product is shipped, received, and collected through invoicing can be a drag on available cash flow. Liquid Capital is here to help with effective freight bill financing.

Freight bill factoring, or freight bill financing, lets you receive a portion of your freight bill when we purchase your A/R (accounts receivable). You will receive the funds you need quickly, allowing you to invest in simply growing your business.

Frequently Asked Questions:

What is freight bill financing?
Freight bill financing is a financial solution offered by Liquid Capital that allows you to receive partial payment (up to 85%) for your shipped goods at time of shipment. This service provides you with more working capital up front that you can then allocate to other areas of your business.

Bridging Finance/Bridge Financing

Bridging finance, also known as bridge financing is an interim financing solution that provides you with the short-term financial resources needed until funds from a more permanent long term solution are available.

Due to the lack of collateral for some of these transactions, bridge financing can be more expensive than conventional financing arrangements. You will often see bridging finance loans at a higher interest rates than other loans, and are amortized over a shorter period. A variety of fees and additional expenses such as equity participation can also come into play. Financial institutions may also request cross-collateralization and other financial assurances because of the greater perceived risk involved in bridge financing.

The good news is that if your business needs an infusion of cash to maintain liquidity while waiting for longer term financing to become available, Liquid Capital offers several attractive alternatives to consider.

To find out if we have a cash flow from financing option suited to your business needs, call Liquid Capital Alternative Funding at and speak with a Financial Solutions Specialist. You can also contact us online or apply now.