UNDERSTANDING THE TRADE CYCLE & TIME LINE FUNDING
Understanding the trade cycle and time line and seasonal factors
We will help you plot the time line which then help you calculate the funding required.
How much funding do I need to bridge the working capital deficit
Based on the trade cycle and time line we will help you understand what amounts you need to bridge the funding gap between paying all the creditors along the trade cycle and eventually receiving the proceeds of sale either directly from the buyer or via debtor finance
Building a business case to support the approach a financier
Having drawn you time lines, calculated the funding and understood the risks and how to mitigate them, you can now prepare the business case that you will need to present to the financiers. We will show you how.
What security does the finance house need versus what they request
The security requested by an financier and what you as a business have to offer can often be at opposite ends of the spectrum. We help you present a balanced approach taken into account numerous risk factors
What are the costs
These will vary but it is essential that you understand what they are and preferably as a percentage of each transaction which will help in planning the pricing of you products. The initial outlay of an up front facility fee may seem high but spread over the number of times you can 'turn' the facility on offer. proportionately this reduces the impact on the bottom line the more you use the facility. The fee will normally be charged on the facility amount and not the turnover.
FAQ - Borrower & Lender
We can help you with the important questions you need answers to and offer some ideas as to what the financier will want from you in return. Call us to today if you think we can help.