Frequently asked questions
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Will Liquidity Capital work with any company?
Liquidity Capital is primarily invested in SaaS companies with over $3M ARR and at least 12 months of sales. If your company is not around these numbers yet, or doesn’t meet the ARR on a non SaaS model, you may still feel free to drop us a line.
Does Liquidity Capital take equity against the investment?
No. Liquidity Capital invests solely in your company’s MRR, by buying potential future revenues.
Is Liquidity Capital’s investment considered to be a loan?
No. Liquidity Capital buys a service from you. We buy your commitment to operate your service at high SLA standards to your monthly subscribers, and your commitment to collect your clients' payments and forward us our share. Our investment is being written in your books as deferred payments and you can recognize our purchases as an actual collection.
Do I need to pay Liquidity Capital if a monthly subscriber cancels his subscription?
No. Liquidity Capital shares the risk of churn. You are only committed to stand behind the service SLA, designed to achieve a high customer retention rate.
What does a monthly return look like?
Based on your churn rate, retention rate over time, and other parameters, Liquidity Capital will estimate the annual value of your MRR and pay it in advance. We collect our share from you against the advance on a MoM basis, according to the actual collection.
Does Liquidity Capital collect payments from my customers?
Liquidity Capital doesn’t contact your clients. We don't want to interfere with your customer relationships, so we cut out the middleman and collect directly from you.
How secure is Liquidity Capital?
Security is our top priority. Liquidity practices the industry’s highest security protocols.
How do I apply for funding?
You can to sign up through our online application form. You can also send us an email. When applying for funding make sure to have the following data: - Annual revenues - Monthly revenues and monthly recurring revenues (MRR) - Monthly growth and monthly churn rate - Last 12 months' invoices (required for final underwriting)
Is accounting software integration required?
It’s preferred but not required. We can assess the health of your business based on your accounting data in various formats. Accounting integration helps speed up the underwriting and credit evaluation process.
Do I qualify for Liquidity Capital funding?
Qualification for Liquidity Capital is determined based on a number of factors. These factors include, but are not limited to, your business cash flow, the strength of your customers, and to a lesser extent, your past sales data.
How quickly does Liquidity Capital make a funding decision?
We'll respond to your application within a few business days. Time to underwriting is a collaborative process that relies on access to your accounting data.
How much funding will I have access to?
Typically we provide cash flow funding ranging between $500,000 - $6,000,000.
How long does it take for funds to arrive in my bank account?
Once you’ve signed the agreement and finalized the due diligence, we can deliver funds to your bank within 48 hours.
Does Liquidity Capital provide unsecured financing?
Yes. Liquidity Capital funding doesn't carry any type of Securities or Liens. However, we do put a few covenants in place, to ensure that you stand behind your projections.
Are there termination fees if I want to leave?
No. As long as you have cleared your balance, you can stop using Liquidity Capital services at any time with no penalties or fees.