Wednesday, February 22, 2012
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How to improve cash flow

The business cash flow cycle may be expressed as the number of days that it takes R1.00 of cash in the business to convert back to cash after having been invested in stock, work in progress and receivables.

Creditor finance on the face of it is the cheapest form of funding but the foregoing of settlement discounts can be significant.

Without receivables finance, your growth can be restricted with too much money tied up in working capital. The use of receivables financing effectively speeds up the business cash flow cycle and therefore significantly improves cash flow.

Rand Trust pays you up to 70% of your invoice value immediately. The balance, less the discount, is paid to you when we collect the full amount from the debtor. By giving you cash upfront,

Rand Trust enables you to avoid high risk outside funding. You retain your clients' goodwill, by being able to offer extended payment terms – without risk to your own cash flow. You can negotiate discounts from suppliers or place bulk orders and grow with confidence.

Over 50 Years Service

Rand Trust was established in 1958, and is a member of the Transaction Capital Group of companies.

Rand Trust has the solution

Rand Trust’s experienced management team can offer you the opportunity, insight and expert advice to unlock the full potential of your business by improving access to working capital and assist with cash flow challenges. No hidden costs or administration fees.

Solutions

Cash Flow

  • Accelerate funding by converting your term invoices to immediate cash
  • Rand Trust prepays a minimum of 70% of the invoice value
  • Upon receipt of customer payments, we credit your account with the balance due
  • Uncapped / Unlimited cash flow facilities
  • No individual debtor limits

Debtor Administration

  • A dedicated Credit Controller develops a pro-active relationship with your customers
  • Rand Trust becomes an extension of your office
  • A professional team ensures efficient collection of monies owed
  • Full, outsourced receivables administration service
  • Receivables controlled by analysing your risk, collecting outstanding monies and identifying problem debtors
  • Provide an efficient sales invoice accounting service, including processing of statements to debtors, reconciling accounts and providing clients with a full monthly report on their debtor’s book; payments received; ageing and outstanding invoices printout.
  • Online access to our systems is also available
  • All information is available electronically

Value Added Services

  • Credit vetting and provision of credit ratings on debtors
  • Early warnings to facilitate caution
  • Legal service in-house
  • If you are experiencing significant demand for your products or services and require funding to step up to the next level Rand Trust can structure a solution to facilitate this, and shorten your invoice cycle.

Benefits

  • Efficient outsourced debtor collection
  • Copy invoices and proof of delivery submitted to Rand Trust online for your convenience
  • Rand Trust maintains a full record of invoices on our open item debtor system
  • Financial and administration controls are fully computerised, with access to your information from our secure website at any time
  • No charge for collection of invoices you don’t need to fund against
  • Free from sales ledger administration constraints so you can concentrate on your core activities providing opportunities for growth
  • Streamlined decision making process
  • Uncapped consistent cash flow
  • Cost effective flexible financial solutions - only pay for what you use
  • Rand Trust enables you to secure early settlement discounts from suppliers to offset costs
  • Improved cash flow enables you to provide greater credit terms to your clients
  • A business-minded approach to decision making
  • A team as excited about doing business as you are
  • Higher profits and peace of mind
  • More time to focus on growing your business

What we do

The Business Problem


Are you experiencing a common business problem?
  • Your success in growing sales is causing cash flow problems?
  • Access to conventional funding is not a solution, due to unnecessary red tape and time delays in obtaining a response and the inherent restrictions?
  • Instead of being free to devote time to running the business, Management's time is taken up by having to become more and more involved in administering and collecting the receivables?

We have the solution!

Rand Trust solves the business problem by providing:

  • Cash on Tap when you need it
  • An outsourced receivables administration function
  • Immediate decisions – you talk to the decision makers, thereby removing the threat of unnecessary red tape and time delay

And in so doing, ensures that your business enjoys the benefits of success factors such as:

  • Accelerated cash flow to fund growth.
  • Increased Gross Profit through early settlement discount.
  • Cost saving - reduced overheads, for example: postage, telephone and salaries.
  • Increased turnover - by offering longer terms selectively.
  • Off balance sheet financing - no red tape - discounting does not adversely affect gearing ratios.
  • Management focus - attention paid to the core activities.

You can devote your time and energy to building the business while rand trust concentrates on collecting and financing your outstanding invoices.

Copyright 2012 Rand Trust (Pty) Ltd