02 Mar Case Study February 2022 – Financial flexibility

Client Position

Our client came to us as they felt as though they were forever needing to contact their bank manager for more money.  Their overdraft was expensive and a recent change in their business meant that the limit was not high enough to manage the adjustment in cash flow requirement for their business.  Their existing bank was resistant to increasing their debt to assist with expanding the change in business.

Client Solution

A more flexible finance solution was required.  Their change in business was creating a higher revenue stream even though their cash flow needs had increased.

RSP presented a cash flow budget and business plan to another lender who worked with us and the client, to come up with a funding solution that enabled them to move their business forward.   A smaller overdraft, one term loan with a redraw facility and a second that the client would begin to pay principal on when the business was established.   Even with an increase in lending to accommodate their cash flow changes, our clients saved $34,000 per year in interest.