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Waiting for customers to pay their invoices can be a significant challenge for any business, whether large or small. This cash delay can slow down growth, make it hard to pay bills, or prevent a company from pursuing new opportunities.

Today, for Yeshiva World News, Author TBD sits down with Tarek Omar, CEO of Royce Stone Capital. Founded in 2017 and based in Melbourne, Australia, Royce Stone Capital is making waves by offering a fresh approach to invoice financing, helping businesses get the cash they’ve already earned faster. We’ll discuss how their unique methods provide quick, flexible financial solutions without the usual hurdles.

An Interview with Tarek Omar, CEO of Royce Stone Capital

Welcome, Tarek. For our readers at Yeshiva World News who might be new to this, could you explain invoice financing and why a business might need it?

Thank you for having me. Simply put, invoice financing is a way for a business to get an advance on the money it’s owed from its customers. Many businesses issue invoices with payment terms like 30, 60, or even 90 days. While they wait for that payment, they still have their own expenses – wages, suppliers, rent. Invoice financing provides a quick injection of cash based on those outstanding invoices. This helps businesses manage their day-to-day cash needs and keep operations going smoothly without waiting for customers to pay.

Royce Stone Capital offers invoice financing. How is your company’s way of doing this different from what a traditional bank might offer?

That’s a great question. Our approach at Royce Stone Capital is quite distinct from traditional lenders in several key ways. Firstly, a bank or a dedicated second mortgage lender will almost always require property as security for a loan. We don’t require real estate collateral for our invoice financing. Banks also often advance a lower percentage of the invoice, say 60-80%. We can advance 75-90% of the invoice value. We also connect businesses directly with our network of family offices and private funds. This means decisions can be made much faster, often within 24 hours, because we don’t have the large, slow-moving committees you find in big banks. Our focus is on flexibility and building direct relationships.

You mention providing up to 90% of an invoice’s value, often very quickly. How do you make this possible for businesses?

Our ability to do this comes down to our funding structure and our assessment process. As I mentioned, we work with private capital sources that are more adaptable than traditional banks. When a business comes to us, we look closely at the quality of their invoices – for example, an invoice to a government body is different from one to a small business. We assess the likelihood of the invoice being paid rather than just the borrowing company’s assets. This focused approach, combined with our direct access to funders, allows us to make quick decisions and release funds rapidly, ensuring businesses get the working capital they need without long delays.

One of Royce Stone Capital’s standout features is offering invoice financing without requiring property as security. Why is this an important benefit for businesses?

For many businesses, especially newer or rapidly growing ones, their main assets aren’t tied up in property. They might be service-based, or their capital might be invested in stock or equipment. Requiring property as security can be a major barrier, preventing perfectly good businesses from accessing finance. By not demanding property security, we open up funding opportunities to a wider range of companies. It allows them to use the strength of their sales ledger – the money owed to them – to unlock cash rather than being held back by a lack of real estate assets.

We understand your service is also discreet. Can you explain what that means for a business owner and why it matters?

Discretion is very important to many of our clients. What this means is that their customers – the ones who owe the invoice payments – are not typically informed that a financing arrangement is in place. All communications regarding the invoice payments can continue under our client’s branding. This is significant because some business owners worry that if their customers know they are using invoice financing, it might be wrongly seen as a sign of financial trouble. Our confidential service helps maintain the client’s existing commercial relationships without any disruption or unnecessary concern.

A recent article on Inside FMCG highlighted that many Australian businesses could use invoice financing, but aren’t. Why do you think some companies might overlook this option, and what would you say to them?

That’s an interesting point. I think there are a few reasons. Sometimes, there’s a lack of awareness about how modern invoice financing works – they might associate it with older, more rigid forms of factoring. Others might think it’s too complicated or only for businesses in trouble, which isn’t the case at all. To those businesses, I’d say that today’s invoice financing, especially the way we approach it at Royce Stone Capital, is a very smart and flexible tool for managing cash flow and supporting growth. It’s about getting access to money you’ve already earned on your terms to keep your business moving forward, whether during peak seasons or periods of expansion.

Could you give us an example of a type of business that has really benefited from your invoice financing service? Perhaps walk us through a scenario?

Certainly. We worked with an electrical contractor who had completed a large job worth $500,000. Their client had 90-day payment terms. While waiting for that half-million dollars, the contractor still had fortnightly wages and monthly supplier bills to pay. This created a serious cash-flow squeeze. They came to Royce Stone Capital, and we were able to advance them $400,000 against that invoice very quickly. This allowed them to meet all their payment obligations and continue operating without stress. When their client paid the $500,000, we deducted our fee, and the remainder went to the contractor. It’s a clear example of how our service can prevent operational paralysis and support ongoing business health.

The business world is always changing. How does Royce Stone Capital’s approach to invoice financing help businesses stay flexible, especially during uncertain economic times?

Flexibility is central to what we offer. Unlike a fixed loan, our invoice financing can scale up or down with a business’s sales. If they have a busy month with lots of invoices, they can access more funding. If it’s a quieter period, they use less and, therefore, pay less in charges because our fees are typically based on the funds drawn. This adaptability is crucial in uncertain times. Businesses can respond to opportunities or manage downturns more effectively because their funding isn’t rigid. We also allow businesses to choose which invoices they want to finance, giving them more control over their financial management.

Finance leaders are increasingly focused on efficiency, as noted in a Financial IT article about invoice automation. How does Royce Stone Capital ensure a smooth and efficient process for its clients?

Efficiency is key for us and our clients. We’ve designed our processes to be as straightforward and quick as possible. From the initial application to funding, we aim for speed. Our direct access to funders cuts out layers of bureaucracy. We also use technology to streamline assessments and manage accounts. While we are not an automation platform ourselves, we understand the need for quick turnarounds and clear communication, ensuring businesses spend less time on paperwork and more time running their operations.

What are some common worries or questions business owners have when they first consider invoice financing, and how do you address them at Royce Stone Capital?

Common worries often revolve around cost, complexity, and the impact on customer relationships. Business owners want to know exactly what it will cost and if there are hidden fees. We are very transparent about our pricing, which is risk-adjusted – meaning the cost relates to the strength of the invoiced debtor. As mentioned, our service is confidential, which addresses concerns about customer relationships. We also explain that our interest is charged on the amount drawn, not the total invoice value, which can make it more cost-effective than some alternatives. We take the time to answer all questions clearly so business owners feel comfortable and informed.

You connect businesses directly with family offices and private funds. How does this direct connection benefit the companies you work with compared to going through intermediaries?

The direct connection is a significant advantage. Fewer middlemen mean a more streamlined process, which translates to faster decisions and funding. It can also lead to more flexible and tailored terms because we’re not bound by the rigid policies of large institutions. Our funders often take a longer-term view and are interested in building relationships with the businesses they support. This direct line helps create a partnership approach, where the funding solution is genuinely aligned with the business’s goals rather than just being a transaction.

What kind of businesses, big or small, new or established, can typically use invoice finance for business solutions you provide?

A wide range of businesses can benefit. This includes startups that don’t have a long trading history or property for security, rapidly growing companies that need working capital to fund expansion, and established businesses looking for a more flexible alternative to traditional overdrafts or loans. We work with businesses across various sectors, from manufacturing and wholesale to transport and business services. The common factor is that they issue invoices to other businesses for goods or services provided and experience a delay between invoicing and getting paid. If a business has good quality debtors, our solutions can likely help them improve their cash flow.

Looking ahead, what do you see as the future for invoice financing, and what role does Royce Stone Capital aim to play?

I believe invoice financing will become an even more accepted and widespread tool for business finance. There’s a growing recognition of its flexibility and effectiveness. We’ll likely see more integration of technology to make processes even smoother and faster. At Royce Stone Capital, we aim to continue leading with our client-focused, discreet, and flexible model. We want to be known as a trusted partner that truly understands business needs and provides practical, effective funding solutions that help companies thrive and grow, regardless of economic conditions.

This has been very insightful, Tarek. For business owners reading this who are interested in improving their cash flow, what’s the best way to learn more about how Royce Stone Capital’s invoice finance for business could help them?

The best way to learn more is to visit our website. We have detailed information about our invoice finance for business solutions. Businesses can find out how it works, the benefits, and how to get in touch with us for a confidential discussion about their specific needs. We’re always happy to explain how we can assist.

Tarek Omar’s insights reveal how Royce Stone Capital is providing a vital service for modern businesses. By offering fast, flexible, and discreet invoice financing without the need for property security, they are helping companies unlock essential working capital. This allows companies to manage their finances more effectively, seize growth opportunities, and navigate the challenges of payment delays.

For many businesses in Australia, solutions like those offered by Royce Stone Capital are not just helpful; they are key to sustained success and stability in today’s dynamic economy. Thank you to Tarek Omar for sharing his time with Yeshiva World News.