Liquid capital bruce dawson

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Start up Truths

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Its Harder It Takes Longer It costs more money Sales are slower to come Most business failures are due to inadequate

funding and/or poor cash flow

Funding sources know thisYou should too - Be realistic - Plan for it

Financing Continuum

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Best in Class Approach to Funding

A Portfolio of Funding Includes 3 or More:

Options: Trade Credit – Free Smaller amounts of private Equity Fixed Asset Loans Working Capital Line of Credit A/R Factoring Line Purchase Order Financing line Equipment Leasing or Sale / Leaseback Personal Capital

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Equity

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Requirements of Private Equity

Executive Management Team with “Experience”

A Product with value

High Value Market and a way to reach it

Realistic Business Plan

Successful Execution Experience

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This is the only free money available

Give trade credit the highest respect – do not rob Peter to pay Paul if Peter is a supplier

Your suppliers will likely increase free trade credit if you pay on time or early

Once trade credit is lost the requirements for cash can increase exponentially

Availability of trade credit affects your credit rating

FREE MONEY

Alternative Funding

Asset Based Lending (ABL)Unlocks value of standing assetsPurchase Order FinancingAccounts Receivable FinancingInventory Financing Sale / Leaseback of equipment

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Financing Continuum

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10Just in time funding…

AR & PO Financing

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CLIENTS NEED Integrity, solvency, reasonable margins Quality of products / services Quality of documentation Credit worthy customers

The client may be credit impaired. The decision is based on the credit quality of their customers.

Able to provide security we require

Requirements

Not Required

Length of time in Business

Perfect company credit

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Commercial Business B to B

Government Contracts

Non-consumer

Sales of $10,000 to $10,000,000 per month (startups OK)Lack availability to sufficient traditional bank financing Deliver quality products or servicesQuality and diversification of customersGrowing, Transitional or Restructuring CompaniesDebtors in Possession

Client Profile

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Client Profile

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Low credit quality customer base

Post delivery performance requirements

Erratic or unmanageable dilution in accounts receivable

Purely business to consumer (B to C)

Poor customer documentation (i.e. PO, Work Order, Contract, Invoicing, Proof of Delivery)

Client Profile

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Significantly increases cash flow

Improves sales & production capacity

Improves your Balance Sheet

Improves credit rating / vendor relations

Increases purchasing power

Its like outsourcing your A / R & Billing Function

Management stays focused on business development & operations rather than

credit & collections

Benefits

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Staffing / Temporary Employment Services

Environmental & Oil Field Services

Manufacturing & Wholesale Distribution

Service Companies of all kinds

Janitorial

Guard services

Landscape maintenance

Government Contractors

Transportation / Trucking

Printing

Benefits

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ABL – Asset Based Lending• A/R Financing – Factoring• Purchase Order Financing• Leasing / Sale - Leaseback• Import / Export Factoring• Inventory Financing

North America Coverage Since 1999

Advantage• Locally owned - local underwriting• Fast, Flexible financial packages• Clients: from Startups to $10M / Mo.•A/R & Billing services•Over 30 credit & collections staff

Liquid Capital

Members of Accord / Montcap / Liquid Capital

Financial FamilyCollectively Financing more than

$1 Billion Annually

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Bruce Dawson, President Patrick Dawson, VP Business Development

Liquid Capital of Colorado

Tel: 303-774-7623Fax: 888-774-7262Cell: 303-902-7056

Bruce@LiquidCapitalofCo.comPDawson@LiquidCapitalofco.com

www.LiquidCapitalofCo.com

Thank You

Helping Businesses Succeed