Flexible finance options accommodate clients’ individual needs

‘We see opportunities where banks see barriers’ Howard Tradonsky . . . Reichmans lends to clients whose business have been running for at least three years. THE OBSTACLES facing small and medium enterprises seeking to take their businesses to the next level are numerous, according to Howard Tradonsky of ReichmansCapital. “Gaining market share, finding and retaining the right employees and producing a good product or service are time consuming. “But the added challenge of managing working capital doesn’t have to be a headache.” ReichmansCapital - a wholly-owned subsidiary of Investec Bank - is an international trade finance business. And its motto, said Tradonsky, is: “Where banks see barriers, we see opportunities”. Acquired in SA in 1990, the division’s clients are small to medium sized owner-managed businesses seeking trade, asset and debtor finance for working capital, funding for the acquisition of assets and to facilitate growth. Reichmans lends to clients whose businesses have been running for at least three years, according to Tradonsky, or where the owner-manager has considerable industry experience. “That we remain flexible in an ever-changing economic environment is one requirement all of our clients have,” he added. “Whether the rand is weakening or strengthening and interest rates are rising or falling, we believe we can accommodate both the economic conditions and those of our clients’ businesses.” The Reichmans team has senior-level banking and credit experience and can be innovative and nimble when structuring the debt and the repayment, according to Tradonsky. “We also manage exchange rates and can facilitate foreign exchange requirements,” he added. For instance, Tradonsky told FTW, when the rand strengthens, exports may level off but the cost of imported machinery, raw materials, stock, or finished goods can come down. “Reichmans will assess, secure and manage the risks attached to the business itself,” he said, “and will use those assets to generate additional working capital required for expansion in a particular macroeconomic environment. “In this way, we assume the role of financial partner.” ReichmansCapital differs from a private equity partner, Tradonsky said, or the more traditional banking partner. “A private equity partner will be looking for returns and will look to come in at a discount,” he added. “Further, there are the hidden costs of loss of control and independence.” A bank may offer facilities or a line of credit - but limits can be reached quickly and are only reviewed on an annual basis. Similarly, the client may not be able to use an available line of credit as he sees fit. “Reichmans essentially offers methods of finance that will accommodate new demand and allow companies to expand at a rate to suit the business.”