DEBT FINANCING
It’s by no means an easy job to determine and arrange a proper debt instrument. Quite time consuming, always back and forth among the participants, handling disagreement, and ultimately achieving the meeting of minds.
A company has various financing needs in its development. We provide consultancy work by analyzing its business needs and strengths and provide solutions that will best suit their requirements. We will assist our client to prepare information material and presentation and work with them to negotiate with financiers for various debt instruments.
Debt instruments include bi-lateral loans, syndicated loans, project finance, structured loans, bonds, equipment leasing, trade finance & factoring, etc.
FINANCING BUNDLING
An optimal mix of financing means leads to maximizing financial flexibility, generating sufficient operation funds and bringing down overall interest expense. A typical case of the opposite is financing mismatch of using short-term loans to service a long-term cause. Needless to say, it will bring about tremendous pressure to the company. Financing bundling also means the right instruments from the appropriate financiers that are capable to deliver.
There are in the market useful & flexible financing instruments that some corporations may not be aware of and conducting an audit check will serve the purpose of alignment with their business.
We advise our clients on the types of financing suitable to their operations, how to compare and choose between them, introducing financiers and handling matters related to their applications and future utilization.
FINANCIAL STRUCTURING
Financial engineering comes into place when normal financing arrangement fails to achieve the purpose in complicated situations, especially when multi-party interests are at stake. For example, in cross-border financing, we need to structure and work out the payment mechanism. In more complex cases, such as when the borrowing parties are from different countries, there may be bewildering issues like taxation.
LOWERING FINANCING COSTS AND IMPROVING COVENANTS
All along the process of working out financing bundling, which banks are to be approached and how to prepare facility applications, we keep track on the financing costs and facility covenants.
Not just the interests and the ways of their calculation, we will work to lower finance expenses including bank charges and annual review fees.
There are some covenants that are too restrictive, for example, the restriction that additional banking facility is subject to a financier’s consent, personal guarantee and some demanding negative pledges. We will strike for the optimal balance that we will raise what are the undue or unnecessary covenants and negotiate with financiers that they will not be part of the terms and conditions of a facility.