RC&C FINANCEWho is RC&C Finance?Business ModelRisk ManagementFundingBase AnalysisRelevant StatisticsThe Future
RC&C FINANCEThe in-house asset finance company for the
Reunert groupSpecialise in office equipment for corporate
customersNashuaPanasonicVarious others suppliers
Only Rental agreements are financedWe advance funds against a future income
stream
MISSION STATEMENT “Creating wealth for all through
innovative finance and service excellence.”
VALUESRespectIntegrityPersonal DevelopmentOwnershipPassionCommunication
KEY SUCCESS FACTORSCompetitive ratesBest turnaround timesService Excellence
One on one relationships
BBBEE CERTIFICATION• Rating: “Non BEE-Limited Contribution”• Re-Rating in November 2008
• Investment in Staff Development• Development of “Black Management”• Investment in Corporate Social Investment
via Nashua Franchises
NASHUA FINANCEExisting ModelBill to franchiseFranchise collects rentals as an agentRecourse risk taken by the franchiseBest rates availablePerform regular franchise reviewsFor Nashua and some Panasonic
QUINCE ASSET RENTALSBill Direct to end userWe collect directlyFinance company takes the credit riskRates competitive with opposition productNo franchise review procedure necessaryPanasonic, Siemens, Brokers and other OA
Dealers
QUINCE ASSET RENTALSStarted October 2006 AS Direct Billing
DivisionRebranded Quince in 2007 under JVAggressive growth in 2007Bad debts high in current year – Over 3% of
bookBreakeven division currently
RISK MANAGEMENTNew computerised vetting systemSystem scores dealsExecutive review of overridesPricing verificationsVoice recording confirmationsQuality control prior to payoutEFT debit orders on each dealOngoing analysis of bad debts against baseMonthly credit committee reviews
RISK MANAGEMENTNew computerised vetting systemWeb based, real time front endBalanced ScorecardManagement/Exception reports dailyCustomer facility limitsDeal status tracking
STATISTICS - CREDITCredit Vet average 3,165 applications pmApproval ratio
Nashua Finance 67%Quince 27%
Discount average 2,038 contracts.Turnaround times
Average 8h30 Existing users 3h36 New users 11h03
FUNDINGConduit SecuritisationBank overnight facilitiesShareholder overnight facilities
Fixed rate deals backed by SwapsSwaps matched to the expected life of the deal
INTEREST RATESMargins are managed
General Cut backs expected in volumesRand Devaluation – Increased values per deal
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BASE ANALYSIS - CUSTOMERSApprox’ 13,000 end usersLargest end user
1.4% of total baseTop 50 end users
19% of total baseTop 50
Geographically spread throughout SA ( mainly Gauteng and Western Cape)
BASE ANALYSISNashua Quince Total
Value (R’000s) 1,416,561 428,175 1,844,735
Average Deal Age
34 months 28 months 32 months
STATISTICS - RATIOS2003 2004 2005 2006 2007
Return on Equity 5% 52% 49% 57% 49%
Cost to Revenue 18% 9% 11% 11% 11%
Return on Assets 0% 10% 3% 3% 7%
Bad Debts
-QAR
0.9% 0% 0% 0% 0%
(1%)
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