“Does Factoring Make Cents In Today’s Economy?”

A Presentation to:

the Professional Credit and Financial Association of Calgary

Quality Hotel Airport and Conference Centre

May 19th, 2009

Judy PerdomoSolutions ProviderLiquid Capital Rockyview Inc(403) 503-1233Toll Free: 1-877-313-1233jperdomo@liquidcapitalcorp.comwww.lcrockyview.liquidcapitalcorp.com

Cash is King?

• “Money isn’t the most important thing in life, but it’s reasonably close to oxygen on the ‘gotta have it’ scale” …. Zig Ziglar

Does factoring make ‘cents’ in today’s economy?

• Advances up to $5MM range

• Solvent company with strong margins

• Principals of integrity

• Credit worthy commercial customers

• Current financing arrangements

• Confirm delivery and acceptance of goods and services

A brief history

• 5,000 years ago in Babylon?

• The Roman experience

• Hudson’s Bay 1670?

• USA 1808

• Canada 1925

• A/R financing is used more than all types of business financing combined

Some statistics

• Total world factoring volume is over $1 Trillion per year

• Volume almost evenly split between recourse and non-recourse

• 4 leading markets in the world are: UK (100 cos) – US $280B, Italy (40 cos) - $131B, USA (200+ cos) - $106B, France (25 cos) - $105B

What is factoring anyhow?

• “A financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital” (www.entrepreneur.com)

• Can be recourse: company producing invoice is liable for payment if not collected

• Or non-recourse: factor bears the risk

Factoring Process FlowchartYou

deliver Goods or Services and create an invoice

YouSell the invoice to

Liquid Capital

Liquid Capitalverifies invoice with

your customer

Liquid CapitalAdvances you up to 80%

Of the invoice immediately

Liquid CapitalCollects payment from

Your customer

Liquid CapitalHolds the 20% balance

in reserve

Liquid CapitalPays you the 20% reserve minus fee

You elect to continue the cycle

Apples & Oranges? How factoring compares to a bank loan

• Continuous supply of funds, no ceiling

• Turnaround time of application

• Creditworthiness of customers

• Repayment considerations

• Not debt financing

• Additional service offerings

• Funding linked to sales

Dispelling the myths

• Loan shark/Lender of last resort

• Collection Agency

• Alienation of customers

• Losing control over receivables

• Prohibitively expensive

Real company success stories

• Overnight Courier

• Oilfield Construction

• Pallet Company

• Trucking

• Temporary Staffing

Overnight Courier

• Started the search for financing in August 2007 with one year in business

• Payroll twice a month• Invoice size $25 - $5,000• Customer base grown from 500 – 1,000• We assisted them in taking on two large

contracts which doubled their sales overnight

Oilfield Construction

• Found me in late October 2006

• Main customer went from paying at 60 days,,, to 90

• 30 days more to wait for cash

• Quadrupled sales Jan 2007 – Jan 2008 ($65K - $280K)

• Can plan based on weekly cash flow

Pallet Company

• Liquid Capital has factored for past 3 years

• Company grew sales from $0 to $3million

• Company recently acquired operating line from their bank

• By funding sales we enabled the company to exceed their growth targets

Trucking

• Started with 1 truck - monthly rev of $12k

• Expenses $9k per month

• Factoring provided working capital for expenses

• Today Company has 11 trucks – monthly rev $140k

Temporary Staffing

• Company provides temp accounting/admin staff

• Cash flow demand for payroll

• Factoring provides 85% advances on invoices

• Company started a year ago with 4 staff and today they have 16 staff – annual rev $675k

What to look for in a factoring company…

• Quality credit department

• Professional collection staff

• Customer service and support: local?

• Contract details

• Industry specialization

• Track record, code of conduct

• Going the extra mile…

Liquid Capital – a solid choice

• Liquid Capital Rockyview Inc is supported by Liquid Capital Corp

• $100MM + yearly volume

• Credit, collections and back office operations provided by Montcap Financial

• Montcap wholly owned subsidiary of Accord Financial

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Our affiliations

• Affiliated organizations:

– International Franchise Association

– International Factoring Association

– Commercial Finance Association

Why Liquid Capital Rockyview?

• I am local!

• Strong client relationships

• Fast and flexible

• Professional background

• Proven track record

• Clients come for the cash and stay for the service

Questions? Thank you!

Judy Perdomo

Solutions Provider

Liquid Capital Rockyview Inc

(403) 503-1233

Toll Free: 1-877-313-1233

jperdomo@liquidcapitalcorp.com

www.lcrockyview.liquidcapitalcorp.com