Docuformas is a Mexico-based leasing company that specializes in printing and office technology for businesses and institutions. The company, led by President Adam Wiaktor, has committed to selling a minimum of 80 units during the first 10 years of the agreement, with the option to renew at the end of that period. Wiaktor plans to begin signing principals within the next few months.
"Our business partnership with Liquid Capital Corp will provide an excellent platform for growth by offering factoring franchises in the Mexican market, a notoriously underserviced market for financial services,” said Adam Wiaktor. “Our franchisees will now be able to leverage our successful business model and offer financing to successful businesses in their locality. Docuformas, always leading through innovation, is the first company to offer franchised financial services in Mexico.”
Liquid Capital is a network of franchise owners or “principals”
“We are excited for this factoring agreement and what it means for the future of Liquid Capital’s expansion plans,” said Liquid Capital’s founder and director Brian Birnbaum. “We look forward to helping more businesses find the financial resources they need to succeed.”
Here’s how factoring works: Liquid Capital purchases invoices from clients and once goods and services are delivered, it gives businesses an immediate cash advance, typically 80 percent of the invoice. Upon collection, Liquid Capital pays clients the remainder of the invoice amount, minus its fee.
Clients include both small, growth-oriented businesses and established mid-sized companies who oftentimes require additional working capital when money is tied up in accounts receivable and obtaining funding from banks and other traditional resources means a long and arduous process. Factoring allows businesses to launch new product lines, support market expansion or simply weather seasonal ups and downs.
Currently, Liquid Capital has a network of 27 principals in 16 U.S. states and 28 franchise owners in Canada. The master agreement with Docuformas is the company’s first step toward further international expansion.