Cash Flow Finance

If you have outstanding invoices that you can't seem to wait 30, 60, or even 90 days to get paid, then we have a solution for you. Here's how it works:

Step One: Prepare and mail your invoice to your customer as usual. Forward a copy to RBP, Inc. for processing

Step Two: RBP, Inc. verifies the invoice will be paid, then immediately pays you 80% of the invoice amount - right to your bank account

Step Three: Your customer pays RBP, Inc. - when that happens, we return the remaining 20% of the invoice money right to your bank, minus our fee.

Cash Flow Finance

There are many types of business financing available; one such type is cash flow finance.

In financial accounting, the cash flow finance section is located in the statement of cash flows, and accounts for outside activities like distributing cash dividends, adding or modifying loans, or issuing or selling supplementary stocks. The cash flow finance category of the cash flow statement assesses the flow of cash between a company, its owners, and its creditors. Numbers in the red, or negative numbers, mean the company is correcting its debt, but may also mean that the business is paying out dividends and repurchasing stocks. This assessment reflects a firm's liquidity, or relative ease in obtaining cash.

Business owners often fund their company's needs through cash flow finance. This is a form of financing where the collateral, or backing, for the loan is the company's future expected cash flows. This is in direct contrast to loans collateralized from assets-using a piece of real estate to secure a loan, for example. Ample EBITDA growth and margins along with tightly controllable levels of interest expenses are focal points of debt covenants involving cash flow finance loans.

Many companies use the cash flow finance option to fund their operational requirements, such as payroll needs, to purchase another entity, such as a merger or other acquisition, or to fund a large purchase, like an expensive piece of machinery necessary to improve operational efficiency. A cash flow finance agreement involves borrowing cash on the guarantee that the debtor's cash flow in the future will be substantial enough to handle the expense, and as such paying off the loan and its interest will not be a problem. This promise comes in the form of giving the creditor the rights to a percentage of the debtor's receivables. Should the debtor default on the cash flow finance loan, the creditor is able to take legal action against the organization to recoup their losses. One advantage of using cash flow finance is the company can acquire immediate financing instead of having to wait for another point in the future.

Cash flow finance is one of the many options companies can utilize to meet their immediate financial needs.