Cash Flow Financing

RCR Finance are specialist Business Finance Brokers that can provide your business with innovative funding solutions for your business.

Cash Flow Funding helps with the lifeblood of any business - "Cash Flow". This is where a financier lends money against balance sheet assets such as stock, debtors, plant & equipment, and in more specialised industries the goodwill of the business.

Cash Flow Funding allows for funds tied up in various assets to be ‘unlocked' to provide essential working capital.

Debtor Financing (Factoring)

Debtor Funding (also known as "Factoring") is where a financier lends against unpaid invoices hence reducing the 'cash cycle' of your business and providing more funds to produce more goods/services.

Unlike conventional overdraft facilities which are based upon the value of real estate security offered, Debtor Funding facilities grow with your turnover providing more flexible funding solutions.

If your business is often streched to wait say 90 days from invoice date to receive payment from your customers, then Debtor Finance may be a solution to improve your business cashflow.

Lets say you invoice your customers on the 1st day of the month. You provide the lender with copies of the invoices you have issued to your customers - The lender then undertakes certain internal probity checks and then advances your business say 80% of the invoice value by crediting your business cheque account, often within several days. The lender then seeks payment directly from your customer for the full invoiced amount (i.e. your business receives 80% of the invoice value immediately, the lender receives 20% of the invoice value).

Advantages of Debtor Financing

• Finances business growth
• Enables you business to take advantage of supplier discounts
• Frees up your real estate security for other purposes
• Enables your business to receive cash income sooner

Business Overdraft / Line of Credit

A Business Overdraft or Line of Credit facility is basically a cheque account with an approved limit designed to help your business with its daily cash flow requirements. Flexibility of this type of product gives you maximum control over your credit exposure.

Acceptable Security

• Residential Property
• Commercial/Retail/Industrial Property
• Stock
• Publicly Listed Shares
• Goodwill (Specialised Industries Only)
  

To contact one of our team members to discuss Cash Flow Finance options CLICK HERE