Offering a full suite of transaction financing WHOLLY OWNED Investec subsidiary ReichmansCapital is increasingly teaming up with other divisions in the bank to offer a more complete service to their clients at a competitive rate, says ReichmansCapital’s Howard Tradonsky. Raw materials A recent example involves a client who manufactures large pipes for the mining and construction industry. To adequately serve a mine in Mauritania, the client opted to build a plant on site rather than shipping the pipes. ReichmansCapital teamed up with other expertise at Investec to assess and absorb the risk for the client, paying for the raw materials so the suppliers could ship directly to the plant in Mauritania. “Another example of our particular offering,” says Tradonsky, “has benefited our clients active in the construction industry. Many who import cranes and other expensive items come to us to finance the importation of the equipment to lease, in turn, to their clients.” Pre-shipment finance Tradonsky says businesses in the wine export industry as well as footwear importers and those in the textile industry selling products to local retailers are constantly looking for facilities to help service the buoyant local market. “We are assisting with pre-shipment finance as well as funding invoices to customers. “Reichmans offers clients with little funding who have good customers and a good offering a full suite of transaction financing from trade finance through to factoring and discounting. “We have been able to help more and more businesses avoid having to sell an equity stake to raise money,” he said. And part of the recipe is fast reaction. “We’re a small, nimble organisation and a lot of our transactions turn on long-term relationships. We’re able to help our clients keep more of their businesses with our arms-length partnering until they are able to grow and require more of Investec’s products and services.”
