Why factoring is useful for new businesses

riverrock — Wed, 15 Feb 2012 19:54:41 +0000

Factoring is a cash flow tool that is used by many businesses, not just those that are small or struggling. Many companies use factoring to reduce the over head of their in house accounting department. Other use it to generate cash, which can be used to expand marketing efforts and increase production. Factoring is especially appealing to young and rapidly growing businesses. Since the process shortens their business cash cycle these companies can get themselves up and running much faster. Eliminating the wait for invoices to be paid, factoring provides immediate working capital to allow the new business to expand it’s services or manufacture more products to sell. Even when you consider the factoring company’s discount, these businesses usually net much more profit with factoring than without. The faster you can get your business operating, the faster you will be able to make money and expand.

Factoring Quick Fact

riverrock — Thu, 02 Feb 2012 17:25:56 +0000

Factoring is NOT a loan! It is the purchase of receivables at a discounted rate. You will not incur any additional debt. It differs from traditional bank loans in that bank loans involve two parties, while factoring involves 3 parties. Banks base their decision on a company’s credit worthiness, whereas factoring is based on the value of the company’s receivables. Factoring can work as a cash management tool for almost any type of commercial business. Call River Rock Financial today to see how we can help your business grow and flourish today!

Get business cash without borrowing

riverrock — Thu, 19 Jan 2012 18:12:36 +0000

Working capital problems are one of the main reasons businesses fail. Even successful businesses experience cash flow problems at one time or another. Typically when a business owner needs money their first thought is to go to the bank and apply for a loan. But banks are not the only places you can get financing. Invoice factoring is an available solution in which your business would not have to incur any additional debt.

What is factoring? Simply put, spot factoring is the process of selling one, or more of your receivable invoices to a spot factoring company rather than waiting to collect the money at the end of your customer’s payment terms. An unpaid invoice has a value. It is a debt that your customer has agreed to pay you in a specified amount of time. By selling that invoice to a spot factoring company, such as River Rock Financial you are able to access that cash quickly, enabling your company to grow and prosper.

Although our spot factoring agreement deals exclusively with business to business transactions, there are examples of factoring in our every day lives. Credit cards can be considered a form of factoring that most people use. For example, you make a purchase at a retail store and charge it to your credit card. The store gets paid almost instantly by the credit card company, even though you do not make payment on it until 30+ days later. That is how factoring works! You sell your invoice to River Rock Financial and we will advance the funds due to you by your customer. You will provide your customer with a document to advise them to redirect the payment for that specific invoice to River Rock Financial. At the end of your customer’s term of credit, they will send payment to us. The best part is, if your customer makes their payment early you will receive a rebate cheque!

Unlock the strength of your receivables and call River Rock Financial today!

The challenge for small businesses

riverrock — Wed, 11 Jan 2012 17:50:50 +0000

The challenge for many small businesses is not that they don’t have enough sales, it’s that they don’t have enough cash. Growth, customer & supplier terms, unexpected expenses and taxes. These are just a few of the reasons why companies lack working capital. At River Rock Financial we understand these frustrations and are here to help. Our spot factoring system comes with zero obligations so business owners stay in complete control. You can’t pay your bills with your receivables but River Rock Financial can!

How?

You sell goods/services to other businesses and issue an invoice with payment terms. Normally you would have to wait 30 or more days, but you need that money sooner! When you call River Rock Financial we’ll discuss your invoice(s) and have you send over a few documents. We will then do our due diligence to ensure that spot factoring is the right choice for your company. If it is, we will purchase the invoice(s) and provide you with a document so you can advise your customers to redirect the funds for that specific invoice(s). You will then receive funds from River Rock Financial. At the end of your customer’s term of credit, River Rock Financial will receive full payment from your customer. The best part is, if the payment is made early you will receive a rebate cheque!

It’s easy! Call us today to see how we can help your business thrive!

And the winner is…

riverrock — Fri, 16 Dec 2011 17:13:12 +0000

Congratulations to George Fasken! His name was drawn this morning live on Kool 107.5 as the winner of a one week stay in Mont Tremblant! Thank you to every one who brought in toys for teens and helped to give many deserving children a merry Christmas.

Enjoy your trip George!

Rock 95/Kool FM Christmas toy drive

riverrock — Tue, 06 Dec 2011 20:16:16 +0000

Do you want to win a one week stay in a luxury chalet in Mont Tremblant, Quebec? In an effort to drum up donations for the Rock 95 & Kool FM Christmas toy drive River Rock Financial is giving away a stay at a chalet in Tremblant for one week of your choice from April-November 2012. Every person who drops off a toy geared towards TEENAGERS (must be for teenagers to qualify, as that is what the toy drive struggles with) worth $20 or more from now until December 15 will get an entry into the draw! Drop off a toy at our office for a good cause and get the chance to win a week in Tremblant! For more details on the draw and it’s rules & regulations please visit our Facebook page (Click here) and “like” us! Full rules and regulations are available at the River Rock Financial office.

Great Gifts for teens:
CD’s
DVD’s
Video Games
Makeup
Alarm Clocks
Ipod or cell phone accessories
Headphones
Backpacks
sunglasses
ski googles
ski mitts and hats

Teen toys are usually the first that run out at Christmas as it seems to be a little harder to find what they may like. Please help us give ALL KIDS the Christmas they deserve!!

Using spot factoring to turn receivables into cash without having to wait

riverrock — Thu, 20 Oct 2011 15:07:00 +0000

Your business is growing and you’ve just delivered a major order to a customer. Trouble is, until that customer pays you, you’re broke. Your banker won’t lend you any more money and your suppliers have cut you off until you pay them, which you won’t be able to do until your customer pays you. So what do you do now? You could just wait until the money comes in and turn away business until then. Or… you could use spot factoring.

Spot factoring is a surefire way to turn your receivables into cash. Normally, you might have to wait 30-90 days or more for invoices to be paid. A factor, such as River Rock Financial, looks at your customers’s credit (as opposed to yours) and can pay you the bulk of what’s owed within a couple of days. You will receive the balance, less fees, after the customer pays us. Many factors want companies to sign contracts promising them a certain amount of business over time, but spot factoring operates differently. After due diligence to check credit of your customer we’ll buy a receivable whenever a business needs to sell one.

It is your choice if, and when to sell an invoice. Our services are no obligation. Once approved you don’t ever have to use us. We’re like another tool in your toolbox. We’re there when you need us.

www.riverrockfinancial.ca

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When should businesses factor?

riverrock — Tue, 11 Oct 2011 15:29:00 +0000

There are six reasons why companies factor their receivables:

1. They need money immediately to improve cash flow

2. The cost of capital is more than that of factoring

3. They do not want to create more debt by getting a loan or loans

4. They are not eligible for bank financing

5. They cannot wait for bank financing

6. They want to build their cash reserves

You do NOT have to sell all of your invoices when you factor with River Rock Financial. You decide which invoices, and how many, you need to sell in order to manage your cash flow needs.

www.riverrockfinancial.ca

How can Factoring assist Construction Companies or Subcontractors?

riverrock — Fri, 23 Sep 2011 15:07:00 +0000

Finding business financing for any small or medium sized company in the construction industry can be a challenge. As an industry, construction has always been difficult to finance. This is partly because each contract is a risk since many things can go wrong. Also, each contract can have many players: the project owner, the general contractor, the subcontractors and the financing institutions which increases the financial complexity.

Most construction companies tend to get paid 30 to 60 days after invoicing. This is a common business practice but it can create serious cash flow problems. Few companies can wait that long to get paid and still cover their own payroll, rent and business expenses. Unless the company has substantial cash reserves, it will run into problems. Company managers will often try to cover the cash flow gap with a business loan. However, few companies can qualify for business loans in this financial environment. Institutions will only provide business loans to companies that have well established collateral, have strong management and impeccable financial statements. Few small or medium construction companies meet this criteria.

There is an alternative that is available to most construction general contractors or subcontractors. It’s called construction factoring. Factoring solves the cash flow problem by advancing funds against your invoices. Instead of waiting 30 to 60 days to get paid, you get an advance from a factoring company, like River Rock Financial. The transaction is settled once your client pays the balance of the invoice to us.

One major difference between factoring and a business loan is that factoring considers your invoice to be strong collateral. It is tied to your sale, and grows as the company does. Factoring can provide cash flow to companies who cannot afford to wait up to 60 days to get paid by clients. Remember, factoring is NOT a loan and you will not incur any debt or affect your hard earned equity.

Giving Your Business The Strength Of Cash Flow To Succeed!

www.riverrockfinancial.ca

Factoring FAQ’s

riverrock — Mon, 12 Sep 2011 15:33:00 +0000

Why Factor?

Factoring can accomplish a number of desirable results. The most basic is having an improved cash flow. Strong cash flow can enhance the growth of your business, making it possible to expand without having to take on debt.

What does a stronger cash flow do for me?

Stronger cash flow enables businesses to meet payroll obligations, satisfy operating overhead, take advantage of supplier discounts and establish good credit for future business plans. These advantages explain why factoring has become a valuable tool for small to medium sized businesses in many industries.

Will my customers believe that I am experiencing financial difficulty if they find out that I’m using a factor?

No. River Rock Financial handles your invoices in a discreet and professional manner, thus making it appear as if we are an extension of your organization. Most informed business professionals today are aware that factoring is a common financial tool used successfully by companies of all sizes.

If my customers know that their invoices are factored, won’t they take longer to pay?

No, often it’s just the opposite. If your customer already has their own policy specifying when to pay invoices, it makes no difference who the creditor is. They will adhere to what their usual policy is.

River Rock Financial. Giving your business the strength of Cash Flow to succeed.