Customized Funding Routines

Not all businesses have the same funding needs. CFR encourages the use of operating budgets to more accurately anticipate needs. Unlike accounting reports, these cash budgets reflect real time cash inflows and outflows. The net result is a more accurate estimate of funding requirements based on current operations.

Other tools are available to estimate funding needs, like our working capital estimator, but without question the use of a cash budget is the best discipline to use in managing a business that is short on operating capital. It is particularly useful when estimating and planning for a new business opportunity.

Once funding needs are established, requests for funding will follow those parameters. Depending on client needs in later circumstances, CFR will adjust the advance rate and its associated fee schedule accordingly. This enables clients with lower funding needs to reduce their financing request and concurrently obtain a lower fee on that advance. This can make a big difference in preserving operating margins since every dollar adds up to success or failure.

The bottom line is that having access to operating capital is a very good thing. CFR works with clients to ensure that funding is adequate but not excessive, and lower advance rates with lower fees are but one way to make that happen.