This service is about buying a client’s liabilities. A client specifies for what, how much and when CASH FLOW should pay on behalf of him. The value of bought liabilities is limited by a tranche. How big a tranche is depends on client’s revenue forecast.
Our client’s liabilities are paid, so he can still develop (e.g. by buying raw materials, goods or services). Of course after some time (specified in an agreement) a client has to pay interest and pay for setting up a tranche.

Financing liabilities scheme:

Benefits from financing liabilities:

• quick access to funds,
• ability to react to market’s needs by financing increased production or sales,
• adjusting the scale and the costs of financing to current client’s needs,
• improving relations with business partners,
• signing an agreement doesn’t mean that a client can’t negotiate with his business partners,
• possibility to accept longer payment terms.

Financing liabilities vs. other financial instruments
If we compare financing liabilities to other financial instruments, it turns out that it has a lot in common with factoring and credit. The only difference is that the service doesn’t concern invoices but client’s liabilities. At this moment, this kind of service is unique.

Feature	Credit	Factoring	Financing liabilities
An object of financing	Current business	Invoices	Liabilities pointed by a client
Security	Different forms of security, e.g. insurance policies, blank promissory notes.	Blank promissory notes, recourse factoring.	Different forms of security, e.g. mortgage, blank promissory notes
Credit history	Important, can be a reason to turn down an application	None	None
The rules of granting	Specified by bank procedures (includes different forms of security)	Few formalities	Few formalities
Percenage of financed deals	100	80-90	100
Time necessary to finally sign an agreement	Long lasting check of a credit application	Very short – money can be granted in 3 days	Short but depended on negotiated terms of an agreement and forms of security