Accounts Receivable Financing
Each senior partner of Red Raven has a broad experience in direct oversight of large accounts receivable instruments as well as having consulted for numerous clients in telecom, technology, and oil & gas service sectors. Both Mr. Egger and Mr. Hughes through their procurement and management of a $300 million instrument for VarTec Telecom have witnessed, firsthand, what an accounts receivable ("AR") line can do to fuel hockey-stick growth. They are acutely aware that high revenue growth, even at strong EBITDA margin can literally bury a company without proper financial planning. This represents the classic, counter intuitive axiom of the “The better it goes, the worse it gets.” This is especially true for O&G service companies with extended payment cycles for their AR.
Fee Structure: No fee is assessed unless an acceptable AR line is negotiated. Assuming an acceptance is achieved, we assess a 1.0% origination fee and 0.1% of the average monthly balance.
Red Raven Group, LLC • PO Box 1385, Aledo, TX 76008-1385 • 817.400.0256 •