A PART­NER TO PLUG THE FUND­ING GAP

Re­ich­man­sCap­i­tal HAVE YOU EX­PLORED THE OP­TIONS ON OF­FER WHEN IT COMES TO SUP­PORT­ING YOUR BUSI­NESS’S GROWTH?

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Busi­ness own­ers need work­ing cap­i­tal fi­nance, as well as medium-term fi­nance in or­der to keep their op­er­a­tions run­ning and grow­ing. Arthur Ans­ley, Head of Re­ich­man­sCap­i­tal – which pro­vides vi­able and re­al­is­tic fi­nance so­lu­tions to pri­vately owned com­pa­nies who are es­tab­lished busi­nesses that seek growth op­por­tu­ni­ties – ex­plains the es­sen­tial dif­fer­ence between the two types of fund­ing.

“Work­ing cap­i­tal is the fi­nance you need to carry on with the day-to-day run­ning of your busi­ness, and is an ab­so­lute im­per­a­tive. With­out be­ing able to pur­chase stock, for ex­am­ple, you wouldn’t have prod­ucts to sell to cus­tomers, and with­out cash re­serves for salaries you wouldn’t be able to pay your staff on a monthly or weekly ba­sis as re­quired.” In this cat­e­gory, Re­ich­man­sCap­i­tal pro­vides a num­ber of prod­ucts, in­clud­ing debtor and in­ven­tory fi­nance, as well as al­ter­na­tive as­set-based lend­ing op­tions.

“Busi­nesses have trade cy­cles and it all comes down to cash flow. In a man­u­fac­tur­ing busi­ness, for ex­am­ple, if you are or­der­ing prod­ucts from a Chi­nese com­pany, you may well be look­ing at a 120-day trade cy­cle from end-to-end, from plac­ing the ini­tial or­der through to re­coup­ing cash from the even­tual prod­uct sale. Re­ich­man­sCap­i­tal un­der­stands that not hav­ing cash re­serves puts own­ers on the back foot, and they pro­vide a sta­ble fi­nanc­ing ser­vice to plug the gap,” Ans­ley ex­plains.

Medium-term fi­nance refers to longer-term fi­nan­cial so­lu­tions, for ex­am­ple when a busi­ness needs to in­vest in fixed as­sets such as build­ings, ve­hi­cles, plant and ma­chin­ery. Re­ich­man­sCap­i­tal pro­vides fi­nance for the ac­qui­si­tion of pro­duc­tive as­sets, ei­ther via fi­nan­cial lease or sale and lease­back. They have flex­i­bil­ity in re­spect of re­pay­ment terms, given the sea­son­al­ity of many busi­nesses, and are also able to as­sist with the im­por­ta­tion of goods where ap­pro­pri­ate.

QUES­TIONS TO ASK

If you are in the sit­u­a­tion where you need ad­di­tional fi­nance to grow your op­er­a­tions, Ans­ley rec­om­mends start­ing off by ask­ing your­self ex­actly what your busi­ness re­quire­ments are. “From there, ask what an ideal fi­nancier should look like,” he says.“Ul­ti­mately, you want re­la­tion­ship-based sup­port, with a fi­nancier who is pre­pared to walk the road with you through good times and bad.”

He says that Re­ich­man­sCap­i­tal un­der­stands that busi­nesses run into dif­fi­cul­ties and will pro­vide guid­ance to point their tar­get­mar­ket clients in the right di­rec­tion in these cases.

Re­ich­man­sCap­i­tal tar­get the pri­vately owned busi­ness mar­ket and un­der­stand that when it comes to get­ting fund­ing, lengthy turnaround times and bu­reau­cracy are not con­ducive to ef­fi­cient op­er­a­tions – they are able to make de­ci­sions quickly and are in­no­va­tive in pro­vid­ing the ideal prod­uct of­fer­ing, cou­pled with ease of trans­ac­tion.This ap­proach has un­der­pinned their strong brand and rep­u­ta­tion in the mar­ket.

For more in­for­ma­tion, visit www.re­ich­man­scap­i­tal.com.

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