Flexiti Financial (formerly Wellspring Financial) entered into an agreement with Liquid Capital, a company specializing in providing working capital, asset-based lending and trade finance solutions. Under the agreement, Liquid Capital will provide the senior debt for a new credit facility, initially up to $25 million, for consumer receivables generated by Flexiti Financial.
The facility will be used to finance the warehousing of receivables originated by Canadian-based Flexiti, pending its securitization.
Flexiti Financial is a fintech company that provides retailers, home improvement contractors and healthcare practitioners the ability to offer their customers the option to pay for big-ticket purchases of goods or services either in equal payments or at a later date.
“We are pleased to have formed a funding partnership with Flexiti Financial,” said Sol Roter, president and co-founder of Liquid Capital. “Flexiti’s award-winning technology platform and merchant partnerships have tremendous potential for the origination of quality financial assets. This transaction represents an important addition to the Liquid Capital portfolio and provides an outstanding opportunity to showcase Liquid Capital’s increasing commitment to the asset-based lending space.”
Since 1999, Liquid Capital has been operating in the factoring and trade finance business. Over that period of time, the company has processed well over $2 billion in accounts receivables and trade finance transactions through both its Canadian headquarters in Toronto and U.S. headquarters in Dallas.
In 2015, Liquid Capital entered into a joint venture with NextEdge Capital to co-fund investments in account receivable, trade finance and asset-based lending transactions.