How is RCA different from factoring?
RCA’s program is non-recourse and therefore is less expensive than traditional factoring options. RCA does NOT file a lien on your company’s assets nor do we have covenant requirements. There are no term limits nor termination fees.
Are personal guarantees or collateral required?
No personal guarantees or collateral are required.
How long does it typically take to put a facility in place?
We commit to provide you with an initial indication of our terms and conditions within 48 hours of receiving some basic information about your company. Once we agree on terms, the underwriting process usually takes 5-7 business days.
What if my company is not yet profitable?
RCA does not require that your company be profitable. RCA is not a lender and primarily looks to the credit worthiness of your customers.
Must the principals of the company have good credit?
The credit standing of the company’s principals is reviewed for outstanding tax liens, but is otherwise not a determining factor.
What is the advance rate for my receivables?
RCA will make an initial payment equal to 90% of the invoice amount for prime federal contracts and 85% for sub contracts. When RCA receives payment from the customer, the remaining balance is paid to you minus the RCA fees.
When will I receive the remaining balance?
RCA pays the remaining balance to you within one day of receiving payment from your customer.
How small, or large, can a facility be?
A facility with RCA can be as small as $100,000. There is no upper limit to the size of a facility as long as it is supported by eligible receivables.
Is there a termination fee?
No. You may cancel the facility at any time without a termination fee or any other penalty.
What should I tell my customers about RCA’s program?
Working with RCA will help support my company’s growth.
Payment terms will not change.
Your contacts at my company will not change.
What if I have a bank line but need additional credit?
The RCA program is very well received by banks because it is structured to work well with commercial credit lines. Your bank must release its lien on the receivables to be purchased by RCA, but RCA does not require a lien on your company’s assets; thus, banks are very receptive to the RCA program which provides cash to your company but does not interfere with any additional collateral the bank may have. Also, RCA is not a bank so is not in competition for your company’s deposit business.
What is the Financial Capability Certification Program?
This program provides customers with contingent financing commitments so that they can demonstrate to U.S. Government contracting officers that they possess the financial wherewithal to execute on contract awards. This results in our customers winning more, and larger, contract awards. There is no fee for this program.