Cash flow dynamics can be very different from company to company.
It’s our job to understand the intricacies of your business, its cash flow dynamics and the industry it operates in, in order to properly identify your working capital requirements before connecting you with the right lenders with the right solutions.
Here are some examples of the things we might want to ask:
• An understanding of your customer and supplier relationships, payment term
• What do you view as the greatest cash flow challenges that you are facing as a business and why?
• Are you able to obtain credit from your suppliers?
• Do you sell goods and services overseas?
• Do you purchase goods from overseas?
• Are you forecasting growth, and how will this impact cash flow?
• Do you need to hold stock as a business and is this forecast to increase in the future?
The starting point is to help understand your existing working capital arrangements, cash flow requirements and your future needs.
It is of course vitally important that we understand your existing working capital arrangements alongside your current and longer-term cash flow requirements..
We will ask you to share information with us, including:
• Copies of current facility letters/agreements and related paperwork,
• Aged debtors & creditors,
• Confirmation of any outstanding HMRC Liabilities, and
• Management Accounts and Forecasts (if available)
All information will be treated confidentially and under a ‘Non-Disclosure Agreement,’ if requested. Once we have evaluated the information, we will identify the best finance solutions and the most appropriate lenders to engage.
One of the key advantages of working with us, is you won’t need to hold numerous meetings with an array of lenders, because that is where we come in. Let our experts take the strain!
Having completed a very diligent process of understanding your business and your specific funding requirements, we are then able to source a number of potential lenders that can provide the right finance solutions that meet your needs.
We will provide a comprehensive pack of information to send to a short-list of lenders, who will issue an initial indication of terms within 48-72hours. So you can sit back, get on with running your business, and we will present you with a number of options for you to consider.
The information pack we will have sent the lender at the outset is so detailed and comprehensive, you can expect the due diligence process to be fast and run smoothly.
It is usual practice to invite 2 lenders to complete due diligence that will in turn then drive the
Lender(s) internal credit process and approval of formal terms.
We are ‘attention-to-detail people’, and its vital directors understand the nature of the agreements they are entering in to before putting pen to paper.
In an industry known for its jargon, we are able to answer any questions and simplify the meanings of the terms that have been proposed that will often incorporate an array of; facility particulars, operational conditions, financial covenants and security arrangements.
Our vast experience ensures that no stone is left unturned, helping you to identify the key points of negotiation across all aspects of the facility.
This is the last step in the process, and for the first time we take a back seat confident you have the best package available to support your business needs and understand your obligations completely.
Whilst this is the final stage before completion, it is in fact often the first point to consider when understanding the future funding requirements of the business. The pre-existing security arrangements can range from the simple to the not so simple and in some cases can have a material bearing on what is/isn’t possible. Our expertise in deal structuring and bank negotiation is a key part in delivering a well-architected funding solution for all of our clients.
Understanding timescales and security processes are absolutely fundamental in delivering the fundraising brief we receive from clients.