As a matter of Factoring… Banks

riverrock — Thu, 26 Apr 2012 16:45:31 +0000

Banks often have restrictive lending requirements related to personal security, cash flow, profitability etc. It prohibits them from making loans to many companies, including those who have experienced previous financial setbacks. When lending money, banks look closely at the borrower’s financial soundness. However, a factoring company like River Rock Financial is more interested in the soundness of the business’ customers and not the client’s business itself. This is a plus for new businesses who have yet to establish a track record, or for a well established businesses that are growing and need to strengthen their cash flow.

Can factoring help your business?

riverrock — Thu, 12 Apr 2012 18:48:34 +0000

Factoring is especially appealing to young & rapidly growing businesses. Since the process shortens their cash cycle, these companies can get up and running much faster. However, factoring is a cash flow tool used by a variety of businesses. Just because a business is factoring their invoices it does not mean they are struggling. Usually it is quite the opposite. Many businesses are growing so fast that they are not able to keep up with the demands on their business to fill more orders or take on more jobs. They are not able to get money from the bank so factoring is a great option to keep their cash flowing. Look at it this way – you can’t pay your utility bills or this week’s payroll with a customer’s invoice. But you can sell that invoice for the cash to meet those obligations. Virtually eliminating the wait for invoices to be paid, factoring provides immediate working capital to allow a start-up to rapidly expand services, or meet financial obligations. It also allows established small and medium sized businesses to continue to grow without having to sit around and wait to get paid for previous jobs. We can help provide a continuous source of operating capital without incurring debt, which can result in growth opportunities that can dramatically increase your bottom line.

What exactly IS Spot Factoring?

riverrock — Thu, 01 Mar 2012 19:47:00 +0000

If your business needs a one time, or occasional cash infusion then spot factoring might be just what you’re looking for. This business financing solution enables a company to receive an advance on a single outstanding invoice.

While full factoring arrangements are typically based on the expectation of monthly reoccurring business, spot factoring can be a one-time transaction. You can also return at any time when your business needs an injection of cash. There are no obligations to return a minimum number of times. Your business can obtain the working capital you need without lengthy contracts or ongoing commitments.

The Factor will first complete their due-dilligence. That involves reviewing the invoice, confirming the goods or services have been delivered, and looking into the credit worthiness of the debtor. Once the factor is satisfied they will advance a percentage of the invoice to the business. The balance is kept as a reserve to be released upon payment of the invoice less the factoring fee.

Spot factoring really can be very valuable for small to medium businesses when they are in need of cash flow but do not want to incur any debt in the process.

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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