Grant Thornton

Debt and Banking Advisory

Why Debt & Banking Advisory?

As a business owner you want to focus on what you do best, running your businesses, which includes servicing your clients, managing your people and planning for the future.  This doesn’t leave much time to ‘properly’ manage the businesses finance needs, which is equally important.

When talking with our clients about their businesses finance & banking needs, we often find they are not really across all the terms of their current banking deal, knowing this is crucial and the start to getting a better deal! 

Good advice is priceless!

A business that structures its banking & finance foundations correctly can sustain changing times and doesn’t need to manage its finances every day, the business will reap the benefits over time because of this.

What is Debt & Banking Advisory?

Debt & Banking Advisory covers two key areas:

1.    Finance & banking reviews

  • an independent expert review of existing or proposed debt and banking facilities
  • highlights positives and negatives for the facilities
  • areas in which the deal can be improved.

2.    Debt advisory

  • capital management review; having the right level of gearing for a business is a key capital management decision
  • advice on the level and structure of debt that a business can expect to sustain
  • identify the best financiers for industry and businesses
  • prepare and manage competitive tender processes with appropriate financiers and banks, that results in  the best offer in the market
  • negotiate with financiers / banks to achieve key client goals – better pricing, less security, less debt repayment.

How do I know if I’m getting a good deal? 

Existing banking arrangements usually reflect past financing and banking needs and not necessarily current or even future needs.  Banks look backwards, unless you drag them into the future!

 

How does this help me?

We provide advice and advocacy / negotiation skills to ensure you get the best possible deal from your financiers and bankers for all your financing and banking needs. We seek to facilitate meaningful dialogue with clients to ensure that the approach to their transaction is bespoke and best able to meet their unique needs and strategy.

How you benefit—by a better deal:

  • Price
  • Security
  • Covenants
  • Compliance
  • Market benchmarking
  • Detailed commercial analysis and review of all finance products and banking documentation, reported in a way you can understand
  • Deep understanding of commercial realities
  • Corporate governance

Bad times are good for banks!

One of the prevailing themes of the last five years has been the large reductions in bank margins due to huge competition for banking products, from mortgages to corporate acquisition debt facilities.

With the Sub Prime contagion much of this price competition has disappeared. All financiers in the market are increasing their pricing & passing on their own higher borrowing costs.

In the current economic climate business owners can be pressured into signing up for a deal that may not be in their best interest.  The reality is that there is still plenty of money available for lending.

Competition for your business is hot and this is where the debt & banking advisory team can really add value to your business.

More than just financial advice

The debt & banking advisory team specialise in structuring commercial solutions to suit the individual needs of each client and understand the complex matrix of issues that can help or hinder the delivery of an optimal financing solution

We adopt a practical, hands-on approach gained from working with a range of financiers, public and private organisations in the development of debt financed solutions from initiation to completion.

 

Next, learn about protecting value.

 
 

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