With a business degree in hand, and a new career path in view, Judy Perdomo found herself in the world of auditing and accounting. A fledgling professional accountant, she worked for the large firms, where her focus was in personal tax accounting and compliance. It was a high pressure corporate environment, and for a variety of reasons she went in pursuit of a career change. She was offered outplacement counselling, where she was introduced to a franchise consultant who presented the Liquid Capital opportunity. After investigating further with head office, Judy decided that she could do it - and all of her requisites were satisfied - she wanted the flexibility to balance work and family; she wanted a home based business without the hassles of rush hour; she didn't want employees or inventory; and she wanted the kind of earnings to match her lifestyle.

For Liquid Capital franchise owners, the marketing tools for building their businesses are many and varied. For Judy, networking is the one with the big payoff, and a process which has generated the business she enjoys today. She joined a number of business groups, most notably the local Chamber of Commerce, and continues to partake in networking opportunities to expand her contact base.

In some cases, Judy is also invited to speak about Liquid Capital and the kinds of services she provides. Not only has she secured clients through these connections, but she also learns about products and services that are available to her. These are excellent environments to get support from business owners with common goals, common interests and common problems. The whole idea is to cultivate new business - either by securing new clients directly, or by connecting with others who might be referral sources.

Interestingly, Judy can trace each one of her Liquid Capital clients to one or more of her networking chains. By being out in the marketplace, and constantly planting the seeds, she is building a strong business foundation - it may not materialize immediately but at least the groundwork has been established. Recently, a government banking agency has become a solid contact, which in turn has created leads and produced referrals to bankers. Judy also makes presentations to various groups about financing in general, and the factoring process in particular. It generates specific interest in her services and often generates business leads. Networking enhances a business owner's profile amongst other business owners - in fact, most of Judy's current clients have come from networking. And even if new business is not immediate, it's clear that maintaining the already established relationships is critical for success.

Josh Rabjohns comes from Wall Street - publicly traded companies - market research - money managers - mergers and acquisitions - investment banking - the whole nine yards. He has the skills and strengths for that business and understands the big picture. Always interested in generating a high rate of return for his money, the Liquid Capital franchise looked good - the business model was attractive and he liked the idea that the harder you work, the more you earn.

In terms of running the franchise, Josh delights in being the decision maker - not only in running the business day-to-day, but also in creating his client base and in providing the financing. In his view, Liquid Capital offers good guidance and mentorship, but they also allow for individual freedoms, which is unlike other franchised businesses. It's an opportunity to create your own growth pattern and your own personal style of operation.

Josh realized early on that it takes time to build the clientele. Today, most of his clients come as referrals from his banking contacts - commercial bankers who now understand the Liquid Capital concept and how it works. The banker may come across a client whose request he cannot accommodate - the deal might be too risky - or the credit history might be weak - or additional credit just cannot be extended - whatever the reason, financing is unavailable. But it doesn't have to be the end of the road - it's possible that Liquid Capital can do the financing.

In one particular case, a manufacturer of display equipment for marketing companies was seeking financing - they wanted to grow their business, but also wanted to reduce the costs within their existing factoring facility. The company was approaching a point in the contract where they had to either renew or terminate their factoring relationship, so they were in a good position to seek a lower cost provider. One option was for the owners to approach their banker for a more traditional line of credit, however, the company's financial picture did not support the line of credit guidelines. But there was another option - through an established relationship with Josh, the banker was able to refer Liquid Capital as an option for their financing. They were offered a funding package that was more flexible and more cost effective than they currently had, and one that would meet their working capital requirements. But there was more - because Liquid Capital has no long-term contracts, the company was able to transition easily to the bank without the burden of additional fees and penalties. Liquid Capital became a win-win situation for everyone involved - the banker was able to offer options, the client acquired the financing that solved their cash flow needs, and a strategy was developed to help the business succeed.

Lee Doernberg worked in Corporate America for over 25 years. Always involved in financial areas, he became a specialist in accounts receivable and eventually worked almost exclusively in accounts receivable accounting. With an MBA in finance, it was Lee's superior management skills that were the highlight of his performance. But there was life after Corporate America. Lee was looking for a business opportunity and went to a franchise broker, where he discovered a business that would suit him perfectly. It was Liquid Capital, and he was in his element - he liked the business model, he understood the inner workings, and he liked the potential for high returns.

In the beginning, telemarketing for new prospects seemed like the right course of action. It was one of the marketing components offered by Liquid Capital, and was targeted at bankers with the objective of building a solid foundation. Indeed, three clients from the telemarketing blitz are still doing business with Liquid Capital. Lee continues to market to bankers, creating continuity for his message and reminding them about his service package. He concedes that the initial launch of the business was the most difficult part - definitely a slow build, but necessary for the subsequent steps of growth. Lee also works with various business groups, associations and networking groups [something that was recommended by head office] and can see that this process of relationship building has paid off.

A great example of client development is illustrated with one of Lee's smaller clients who was able to experience growth and become a more substantial client. This was an interior design firm that serviced large companies, and was factoring $800 invoices - yes, definitely small potatoes! But Lee serviced the account, and as the company developed, the invoices started to approach the $100,000 level. This client needed cash for labor and production, for artwork and framing, and for the associated costs of delivering a finished product to their customer - and all this before getting one penny on an invoice.

Being a relatively new business, without suitable collateral, and no credit history, the bank said NO - it was too risky. And with very large invoices being paid in 60 days or more, there was no way to handle the cash flow demands. This client could not have done the deal without the up-front operating cash from Liquid Capital. For Lee, the most important aspect of the deal was the invoice - he determined that it was credit-worthy, and that the customer was credible. The design firm now had cash in hand to fully complete production, and the $100,000 invoice was satisfied within a suitable time frame. This client continues to factor invoices with Liquid Capital because it works - and the cost of financing is supported by the success of the transaction.

Ron Metro has been involved in the banking industry for more than 30 years. Starting his career with one of the largest banks in the country, he progressed into management, and then moved to another bank that specialized in funding local businesses. Ultimately, Ron managed over 100 locations - he knows the banking business and is well connected in the financial services industry.

When the bank was reorganized and Ron was considering his options, he attended a career seminar featuring a presentation about Liquid Capital. He followed up with more research, investigated other industries, took a closer look at factoring, and talked to existing franchise owners. He decided that Liquid Capital was a good fit, and concluded that the business model worked well.

Ron's biggest advantage as a new franchise owner was his network of established contacts - an existing base of managers and customers that he was able to approach. But it still took more work and more time to get things going than he anticipated. At the end of the day, Ron Metro acquired the most clients in the shortest period of time than any other franchise owner.

One of Ron's original clients has already graduated to a traditional lender and is no longer factoring. At the time, Ron was prospecting a number of previous bank customers and one phoned the office for an explanation of factoring - it turned into a deal that involved $3 million of invoices over 6 months. The process began with an in- depth explanation of how factoring worked, based on guidelines from the Liquid Capital business model, and some personal fine-tuning on the selling process. This was an oil field construction company that built roads and locations for drilling rigs - an established business, with some previous bad credit history, and with no way of acquiring credit from the bank.

Indeed, in his previous life as a banker, Ron would not have bank- rolled this customer. But as a factoring professional, things were different - the customer base was solid and was comprised of big oil companies - in other words, there was no problem collecting the receivables.

The client was initially generating $150,000 in sales per month, but with additional operating cash, this could easily increase to $600,000. With the oil companies paying invoices in 90 days, there was no way to pay for labor, fuel and equipment leases - those expenses all had to be paid monthly. So factoring was the viable solution. Not only did the client manage to maintain existing business, but with the additional working capital from Ron, he was able to grow the business substantially.

After a lengthy career with one of the nation's largest telecommunications giants, Dan Effa was ready for a change. A professional accountant, his career focus was primarily in finance, where he occupied senior level management positions in the corporation. But with increasing corporate demands and limited potential for earnings, it was time to look at new opportunities. Dan wanted more control over his future, and while he considered several franchised businesses, the idea of going into financial services was an obvious choice.

After meeting with a franchise consultant who had actually purchased a Liquid Capital territory himself, Dan was sold on the business plan. He spoke to other franchise owners and thoroughly checked out the corporate infrastructure to make certain he made the right choice. He also wanted to satisfy his wish list - he wanted to work from home; he wanted to set his own pace; he wanted the potential for high earnings; and above all, he wanted a good trade-off between effort and reward.

Dan's professional background has certainly enhanced his capacity to build his business. He has connected with a government agency that specializes in assisting start-up companies and has established a working relationship with them. He provided the decision makers with an understanding of factoring, and they now appreciate that Liquid Capital is not in competition - they are therefore prepared to refer clients who don't qualify for their funding.

A good example is one of Dan's clients - an international importer in the hospital industry - the company could not get funding from the government agency - they were too new and had little to show in terms of business performance or credit history. So the client was referred to Liquid Capital for alternative financing.

This importer was hand-cuffed by a container strike - his stock was locked down at the port, he could not pay his supplier for the goods, and he could not collect on his receivables because the goods were not delivered. It was a recipe for bankruptcy. But Liquid Capital had the remedy - Dan provided cash for the receivables, as well as additional financing for the client's purchase orders. The company now had cash flow to keep the business going. When the strike was over, the goods were delivered and the invoices paid. For Dan, this company was a good risk - they had good margins, the customer base was credit-worthy, and the goods were secure. For the client, the cost of financing was justified because it was - without funding they were finished. In fact, with the funding provided from Liquid Capital, this client was also able to pay outstanding government taxes, and re-establish with a much stronger foundation.

With a career focus in the oil industry, Travis Gangl knows the oil patch from top to bottom. As an employee, he succeeded at senior level management, and was instrumental in taking the company public. He eventually took an equity position and built up the business from 15 employees to 150. But Travis was looking for something different - a home based business, without employees, and with potential for high returns. The Liquid Capital franchise seemed like a good fit, and although he knew little about financing, he had a basic understanding of factoring from previous business relationships.

As a Liquid Capital franchise owner, things started off slowly. Not knowing how to sell the services, Travis connected with his existing network of business contacts, and recreated himself as a financing specialist. As he was prospecting, he was learning - and as he was selling, he was getting familiar with the nuances of factoring. It took three months to sign that first deal and he is still funding the very same client.

New clients were concerned about the efficacy of factoring, and there were always misconceptions about the business. But Travis learned quickly that Liquid Capital's service package was viable, and with hard work he managed to double business year after year. Today, he handles some $30 million in receivables annually, primarily from business generated through referrals.

One of his clients, a pipeline company, started out as a small factoring client had experienced sudden growth, then became bankable, and decided to undertake a lending package from their bank. After 6 months of additional growth, one partner wanted to buy out the other partner, making an offer of $2.2 million, which the bank declined to support. The partners decided to return to Travis for the funding they required, but it meant that the financing would have to be generated through an asset based loan [on equipment] along with accounts receivable factoring. The combined total would satisfy the funding needs of the buyout, so Travis bought out the bank, financed the receivables [as well as the equipment loan] and the deal was complete.

This transaction was quite simple since all of the paperwork was in place from the original client relationship. Today, the company is still factoring at level highs of about $25 million annually. Why? Because even in a heated economy this business is too risky for the bank. The company builds pipelines, which is labor intensive, and most of their operating cash is required for weekly payroll - but with most customers paying in 60 days, they need to bridge that cash flow gap. The answer? Factoring suits their needs, and with high margins, they can afford the extra cost of the financing.

With a business degree in finance, Nick Haley honed his selling skills at XEROX, one of the most traditional of corporate environments. After progressive positions in sales and marketing, the company was restructured and Nick was in pursuit of a career change. The Liquid Capital franchise opportunity came at the right time - he understood finance, he was ready for some career independence, and the business model was sound.

After the initial training program, Liquid Capital provided Nick with his first business lead - a small trucking company that eventually became his first client. With guidance from the corporate head office, Nick learned about setting up the new account and managing the financing process. As new clients emerged, it was clear that building business relationships was a taxing process - but with head office support and a personal Factoring Advisor, it was easy to get questions answered and problems resolved. In fact, for a new franchise owner, the supportive environment was integral, especially in the early days of setting up the business.

As business developed, Nick chose to generate his own leads with a focus in the trucking industry. He ran small space ads, established his service package and created an image for himself, so that today he specializes in financing truckers. It's an ideal market for factoring - companies are undercapitalized; banks are hesitant to lend; daily operating cash is required for gas, insurance and leasing; and receivables are strong - just the right combination for Liquid Capital.

For Nick Haley, clients have become almost like business partners, especially in the trucking business. Financing is only part of the equation - business risk must be managed - short term and long term decisions must be made - and the fact is, without the cash flow, these companies might not be in business. Nick has companies with a small number of trucks and some with 30 trucks, some want to grow, some are content maintaining existing levels. In one instance, a regional trucking client was doing about $50,000 a week in business. Customers were paying their invoices after 60 days, but they were reliable, credible accounts.

Too risky for the bank, this trucker counted on the operating capital from Liquid Capital, and was prepared to pay the fees for that immediate cash - a win-win situation for everyone. Nick established his client base by building relationships with the client - advising and coaching is a bi-product of the relationship - he really becomes their business consultant, not only providing the necessary cash, but also consulting. It's an approach that lends itself to the industry, keeping existing clients happy, and creating a solid referral network for future clients.