Corporate Finance
Debt Advisory
Debt advisory is a service used by companies to support them in the internal decision process relating to all aspects of debt including assessing the impact of paying down or restructuring existing debt or considering the impact of onboarding new debt. Ensuring that a company has sufficient cash flow to cover its debt obligations is critical and our debt advisory service helps to support our clients to understand the headroom they have and identify any bumps in the road before they happen. Given the current economic climate, debt advisory has become an increasingly important service being considered by businesses as a way of ensuring financial stability, improving financial performance and protecting the positions of the various stakeholders involved including shareholders, employees and lenders.
Benefits to various stakeholders
Business
- Net margin improvement
- Cash flow improvement
- Potential expansion opportunities and business growth
- Significant improvement to days payables outstanding
- Improving relationships with vendors for better credit facilities/terms
- Operation continuity
- Securing jobs
- Potential economic growth
Owners
- Better relationships with banks
- Uplifting the finance function
- Cash flow relief
- Social standing support
- Exiting of troublesome investors/partners
- Clarity on financial position
- Separating personal from business financing
- Releasing/replacing some of the securities pledged to the banks
- Preparation and position for strategic exit
Banks
- Fix problems before they occur
- Better relationship with the borrower
- Cleaner files for regulators
- Reduce possibility of provision and losses
- Clearer picture and insights into the borrower’s financial position and capabilities
- Potential new business through takeover, etc.
- Less account management burden
Management
- Board support for their function and responsibilities
- Help bring the owners on board and get their support
- Better relationship with banks
- Less hassle from debtors
- Cash flow relief
- Less pressure from suppliers
- Better relationships with employees
- Future positioning
- Clearer reporting
- Exposure and professional growth
