Products and Services
Tower Investments will constantly strive to develop innovative and customised solutions to satisfy our customer’s unique business requirements. Tower Investments can provide both short term and specialised insurance for comprehensive equipment and commodity cover throughout the supply chain.
Tower Investments has established numerous lines for funding with South African and International Banks and alternative funding partners to satisfy our clients Asset Based Finance, Bridging Finance and Supply Chain Finance requirements. Tower Investments will also in special circumstances use our own in-house facilities to fund the needs of our clients.
This in essence means that we are not a Bank but an intermediary, in a position to leverage the relationships that we have to source the best funds available for our client’s funding needs.
What is important to understand is that Tower Investments has an excellent reputation amongst all our fund providers, it has an outstanding internal administration systems and is providing a contact service between banks, asset suppliers and end users.
We will always push the boundaries to meet the needs of our customers while continuing to support the values of our partners in business.
Supply chain finance allows a supplier to sell its invoices to a bank at a discount as soon as they are approved by the buyer. That allows the buyer to pay later and the supplier to secure its money earlier. Instead of relying on the creditworthiness of the supplier, the bank deals with the buyer – usually a less risky prospect.
Supply chain finance is seen by many supply chain experts and managers as the great hope for easing problems with suppliers. Although it actually refers to several different solutions, at its most basic it allows both the buying company and the supplier to improve their working capital – a crucial attribute given the recent financial crisis.
Supply chain finance can also be arranged for the debtor transactions in the supply chain.
Opportunities exist for Tower Investments to establish facilities both locally and off-shore to finance your supply chain through leading international banks.
Bridging Finance is an alternative method of financing, used to provide liquidity while waiting for an anticipated and reasonably expected cash inflow.
Typically, Bridging Finance is provided for short periods of time – 3 to 12 months.
Anticipated Transactions
Essentially Bridging Finance solutions assist a client in accessing funds that may only be due to them in the near future.
The most common financeable opportunities arise from the following situations:
- Advance on estate agents commission;
- Advance of “Trapped Equity” arising from sale of an existing property;
- Advance on a bond increase or bond switching;
- Advance on secured liquidation claims;
- Advance to corporates awaiting drawdown of bank facilities;
- Advance of Mezzanine Debt structures.
Each of the above funding scenarios provides a secure low risk lending opportunity, provided that they are structured correctly.
Insurance of assets is an integral part of operational rental business as all funders require proof of insurance for the full term of the agreement. Tower Investments can provide insurance for these rental transactions as well as independent insurance quotations over the compete complement of asset classes. Not only do we at Tower Investments provide competitive pricing but generally the terms and conditions of our agreements are less onerous than other leading insurance brokers.
Contact us to evaluate and compare our offering.
Why Asset Based Rentals?
TAX DEDUCTIBLE
Treated as an operating expense; in other words it is off balance sheet. Cash purchases of assets must be capitalized and depreciated over prescribed periods. Operating Leases are not restricted by CAPEX or Budget approvals;
Rentals don’t directly contribute to generating or influencing a company’s profit margin. If capitalised, a company’s profit margin and various other financial ratios are however directly and negatively affected of which the most sensitive one surely is dividends to the shareholder.
Allows customers to redirect their cash to income – generating assets, projects, property, etc. rather than assets that depreciate in value, whilst at the same time spreading the cost of the rented equipment over it’s useful life. Rentals provide Cash Flow Certainty – Monthly payments are fixed throughout the term of the agreement enabling you to effectively understanding your exact costs associated to your company’s infrastructure.
Our rental options allow for a myriad of different structures and end-of-term options. Rentals also provide for the added flexibility of component upgrades or changing only selected items during the term of a rental agreement without penalty.
Because we provide extended payment terms and an online asset monitoring and tracking web-site CREST Management Systems, it makes administration that much easier.
