Have you explored the options on offer when it comes to supporting your business’s growth?
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 and seek growth, 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 the monthly or weekly basis as required.” In this category, ReichmansCapital provides a number 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.”
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 also have flexibility in respect of repayment terms given the seasonality of many businesses – they are also able to assist with the importation of the goods where appropriate.
“Ultimately, you want relationship-based support, with a financier who is prepared to walk the road with you through good times and bad.”
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 target market 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.
To find out more, call +27 11 286 8275 or visit: www.reichmanscapital.com