RMP Capital - Newsletter - October 2010

Nov. 4, 2010 - PRLog -- Why Would a Business Ever Finance Accounts Receivables?

The truth is, a lot of businesses are doing accounts receivable financing, factoring and many types of alternative financing — and banks know it! Why, because of the recent banking industry problems and the current economic environment. Many large regional banks do asset-based lending and even factoring. But, it’s labor intensive and requires careful expertise.

Small community banks outsourced pseudo-factoring programs years ago through a handful of software providers who have since been bought and discontinued. The revenue rewards were high, but so was the risk!

RMP Capital Corp, headquartered on Long Island, NY, provides a hybrid turn-key Accounts Receivable Funding Program for banks to offer their customers and prospects at no risk or cost!

Accounts Receivable Funding Through a Community Bank Program Versus a Typical Factor:

Cash flow is always the life blood of a company. Without adequate cash flow, strong companies can stagnate and eventually fail. Cash flow must be available to fund the cost of payroll, materials, payables, future growth and the ability to grant terms to new customers. All of these responsibilities are important, but cumulatively the list presents an obvious cash flow drain. All companies must have the ability to offer terms to their customers, but to growing companies, carrying large receivables and acting like a bank can be a huge burden. Typically, businesses offer 30-day terms, but payment is often not received for 50–60 days. If a company in this situation is not well capitalized, they can have problems getting traditional bank financing and be forced to scramble for credit from unknown sources.

RMP Capital partners with community banks to allow them to offer an Accounts Receivable Funding Program to their customers and prospects. It lets a business convert their receivables into cash on an ongoing basis, similar to a merchant services program. In doing so, accounts receivables, usually a dead asset, are now available to meet the cash flow needs of a growing business. Best of all, it allows a business to maintain a bank relationship and deal with the people they know and trust.

Accounts Receivable Funding is an alternative to traditional bank financing, specifically to solve cash flow problems. There are a lot of misconceptions about RMP’s program that go along with traditional factors. Accounts Receivable Funding is a hybrid bank program providing business owners real solutions.

Comparison of RMP’s Community Bank Accounts Receivable Funding Program Versus a Typical Factor: http://www.rmpcapital.com/RMP%20Newsletter%2010-2010.pdf

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RMP CAPITAL CORP - WE MAKE FUNDING YOUR BUSINESS EASIER!

We are a national provider of factoring solutions for small to medium sized businesses, portfolio management services, and rediscounting lines of credit to independent factoring companies.

http://www.rmpcapital.com/