Ahoy, Accounting Adventurers! 🌊
Picture this: You’re sailing the high seas of finance, and you need a trusty vessel to help you navigate through the rough waves of funding needs. Enter the Revolving Acceptance Facility by Tender (RAFT), your sturdy ship that’s ready to keep your business buoyant. So, what exactly is RAFT, and how does it work? Let’s dive in! 🏊♂️
Setting Sail with RAFT
A Revolving Acceptance Facility by Tender (RAFT) is an underwritten facility from a bank designed to place sterling acceptance credits through a tender panel of eligible banks. Just like having a favorite team of seasoned sailors, the tender panel ensures that your financing adventures go smoothly.
Key Components
- Revolving Facility: Think of it as a magic money pot that’s always ready to refill itself. You draw funds, repay, and then draw again, just like refilling your cup with your favorite beverage. 🍹
- Acceptance Credits: Issued by banks, these credits act as your trusty life vests, ensuring you float financially until that wave of cash flows in.
- Tender Panel of Eligible Banks: These are your seasoned sailors, the banks that bid to provide the funds at competitive rates, ensuring you get a great deal every time!
The RAFT in Action 🚣♂️
Imagine your business is a ship named
