Businesses of all sizes, from start-ups to established companies and franchises, are increasingly seeking nontraditional financial support as a means to launch and scale. This financial support not only helps businesses to secure a stable financial foundation and future, but also strengthens the economy as a whole.

Andre Dowdell Jr., CEO and founder of Liquida Capital, explains that the company has been established to walk alongside business managers and entrepreneurs to help them secure sufficient capital for critical company functions.

One of the ways it has been able to facilitate financial acquisition for its clients is through strategic partnerships, for example, with major U.S. banks.

Nontraditional methods of financial support such as the kind provided by Liquida Capital are playing an increasingly important role in helping the U.S. economy, especially during these times of economic transition. 

Strengthening the economy, one business at a time

Andre explains how access to nontraditional funding helps to support the economy.

“Alternative financial support injects liquidity into the economy,” he says. “This boosts consumer spending, encourages business investment, and helps prevent recessions from deepening.”

Through supporting credit flow, small and medium-sized businesses can still access credit. “This helps keep businesses afloat and protects jobs during downturns,” he continues.

“Furthermore, through assisting companies which might be turned down by major institutions when applying for financial loans, nontraditional methods of financial support help close gaps in access to capital. This supports more inclusive economic development.”

A trend towards nontraditional methods of financial support

Businesses turn to nontraditional financial support when traditional sources, such as bank loans, lines of credit, or public markets, aren’t available, sufficient, or suitable for their needs. 

One of the primary reasons for this growing trend towards seeking alternative financing methods is the limited access many companies have to traditional credit. “Small businesses, start-ups, or companies with weaker credit histories may struggle to qualify for bank loans,” says Andre.

He explains that in his experience, many start-ups and struggling businesses aren’t reaching for help because they believe they won’t qualify and that their applications will be turned down.

At the same time, alternative sources of funding can offer more flexibility. “Traditional loans can involve a long application and approval process,” explains Andre. “Nontraditional financing can be much quicker and more flexible, which is helpful in urgent situations.”

During economic downturns, such as the recent Covid-19 pandemic, banks may tighten lending standards. Nontraditional sources step in to fill that gap.

“We also offer financial support which is tailored to specific business needs,” explains Andre. “Our financial support can be tailored to specific business needs. For example, equipment financing for machinery, invoice factoring for cash flow gaps, and grants or subsidies for targeted projects. This level of customization isn’t always available from traditional lenders.

‘Economy-changing work’

Andre is committed to helping corporations to reach their potential through Liquida Capital. This work, he believes, is economy-changing.

 

Andre started his own business and elevated it to phenomenal status by his early 20s, understands how difficult it can be to launch a start-up and scale an established business, while weathering economic storms.
He started out as a professional football player, but soon became an entrepreneur, launching a car business from scratch and growing it to a 7-figure enterprise. Because of personal experience, he is familiar with the many challenges which business owners face.

 

“It’s about reaching out for support and understanding that support is available,” he says. “Many start-ups fail within the first year of their launch, and one of the main reasons given for this is lack of capital. We hope to help businesses to overcome these hurdles.”