Does your Bank understand you? Is your Bank responsive to your requirements? Are your facilities correctly structured to meet your business needs? Our Approach to Finance delivers results! Contact us to discuss how you can get outcomes like these. | "I wanted to let you know what happened with our application which you most professionally prepared. Ultimately the 3 banks we applied to approved the project on the most competitive terms, which made it a bit embarrassing. Ultimately the (existing bank's) head office climbed over the top of (the branch office) when the Managing Director's number 2 indicated he wanted it (to keep the company's business. The Due Diligence accountants and banks were impressed with the application; the accountants not by word but the fact that they lifted much from it(!) and the Banks, by word....
| Click here to find out more | | | "Siu Ling, make sure you charge us "fully" for your efforts. Why? Because your input triggered a thought process in my mind that allowed me to go back with surety and confidence to [the Bank] and get what we wanted. I really appreciate it."
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Case Study A - Restructure of facilities can assist in improving cash flow and growth financing
- A well-constructed Finance Proposal can deliver a positive change with an existing financier
The situation Company P, a manufacturer/wholesaler of fast moving consumer goods, had been growing rapidly over the years organically and through small acquisitions. It had been experiencing difficulties with its existing banker (Bank A). Bank A had been reluctant in the past to meet Company P’s growth financing requirements. Company P wanted to make a major acquisition. Purchase price included a significant goodwill component. The funding required would result in Company P almost doubling the total amount of its existing facilities. In view of the difficult relationship with Bank A, Company P decided that it needed to change banks to obtain financing to meet its growth plans. Task We were asked to assist in preparing a finance package for presentation to Bank A and potential new financiers. What we did: Quickly established a good understanding of the business, its growth strategy and financials (using the Information Request List). Reviewed existing facilities. These were found to be inefficiently structured and hampered Company P’s ability to fund its growth. Structured a mix of finance facilities to meet Company P’s growth financing requirements. This included full restructure of existing facilities. Prepared a written finance proposal that clearly articulated Company P's business case. Result The financing package was presented to 3 banks by Company P’s directors. One of the directors advised as follows: [Quote] “I wanted to let you know what happened with our application which you very professionally prepared. Ultimately the 3 banks we applied to approved the project on the most competitive terms which has made it a bit embarrassing. Ultimately the existing bank's head office climbed over the top of them (ie Bank A’s branch office) when the Managing Director’s number 2 indicated he wanted it (ie to keep Company P's business). The Due Diligence accountants and banks were impressed with the application (the accountants not by word but by the fact they lifted much from it for their own report) and the Banks, by word. I wanted to thank you for your focused professionalism and attention with the job…” [end of quote]
Back to Top Case Study B - Our input can assist in achieving the results you want from your bank.
The Situation The L Group of companies is a diversified group of companies with activities ranging from professional services, property development and investment, as well as interests in operating businesses across a variety of sectors ranging from manufacturing to hospitality. L Group has long standing significant relationships with two major financial institutions, Bank A and Bank B. The Group’s key requirements of its major banking relationships are that its bankers fully understand its businesses; the Group’s modus operandi, and are commercial and responsive in its dealings with the Group. Bank B, the Group’s second bank providing over $40 million in facilities, had become slow and unresponsive to the Group’s requirements. As the L Group was planning on significant growth and expected to increase its facilities to $80 million, it decided that it was essential to replace the Bank B relationship with another major financier. Task We were asked to identify appropriate financial insitutions who could provide satisfactory relationship as one of two major bankers to the Group and prepare Financing Proposal for refinancing of facilities of around $16 million; with the balance of facilities to be refinanced subject to satisfactory conduct of the initial relationship. What we did: Agreed on a short list of financiers which would have the balance sheet capability to accomodate facilities of up to $80 million and which were regarded as reponsive and commercial in their dealings with businesses. Prepared a Financing Proposal which clearly articulated the rationale for credit approval of the Group’s financing requirements. The process is iterative, involving exchanges of a number of versions of the Proposal. The Owner/Director of the L Group continued to negotiate with Bank B as the Proposal was being developed. Result Bank B agreed to meet all of the L Group’s requirements, thereby eliminating the need to undertake a major refinancing process. The Owner/Director of L Group advised as follows: [Quote] “Siu Ling, make sure you charge us "fully" for your efforts. Why? Because your input triggered a thought process in my mind that allowed me to go back with surety and confidence to [Bank B] and get what we wanted. I really appreciate it.” [End of Quote]
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