RMP’s Community Bank Program is sweeping across the country with Bank Consultants now in Massachusetts, Pennsylvania, Illinois, Georgia, California, Washington, Florida, Texas, Maryland and DC. Community banks are seeing the value of RMP Capital’s partnership that reduces risk and exposure, grows deposits, increases fee income and adds a competitive advantage, all at no cost! Most importantly, small to mid-sized businesses are able to have access to the capital they need to reach their full growth potential.
What I find interesting in these challenging economic times is the number of small banks that are lending on receivables. The businesses all have very good credit and the bank usually will only lend on 50 to 75% of the receivables value. But, even good companies can get into trouble with this type of lending. And most small banks don’t have the back-room to monitor the credit as closely as they should. Because these are typically growing businesses, they usually get to a point where the bank is no longer comfortable with the loan to value ratios.
RMP’s Accounts Receivable Funding Program is a natural fit for these types of situations. Cash flow is increased by having invoices funded within 24 – 48 hours, allowing the business to self-fund their growth. The bank can reduce or eliminate its risk and exposure, and now has the proper oversight mechanisms in place to monitor the business 24/7. The deposit relationship continues to grow and the bank receives fee income for the life of the relationship. Best of all, when growth levels off, the bank has maintained its trusted relationship for future traditional credit needs.
Chuck Stover, Manager of Bank Relations