Print Friendly, PDF & Email

Finance Facility Review: How does your finance facility stack up?

How confident are you that your current business funding is on competitive terms with a bank that remains committed to your industry and supportive of future expansionary plans?  Opportunity costs and unexpected surprises may result and invariably, these occur at the most inconvenient of times.    For that reason, we recommend a business finance facility review to ensure long term business success.

A general finance facility check-up is worthwhile for any business relying on consistent bank funding, however it’s particularly important if your business is experiencing any of the following:

  • Additional expansionary funding requirements
  • Poor relationship with your current banker
  • Increased requirements for the business to hold inventory
  • Recent strong business performance with no corresponding change in banking terms

During a finance facility review our specialists will gain an understanding of your business funding requirements, the general suitability of facilities being used, the market competitiveness of your arrangements, any pain points you are feeling in your banking relationship and either identify opportunities to enhance your finance facility arrangements or affirm you are well structured.

WHY PERFORM A FINANCE FACILITY REVIEW?

A finance facility review may result in:

  • determining the suitability of facility structures for current and future needs
  • identifying areas to restructure facilities to save interest
  • Providing independent assessment of rate and fee competitiveness
  • Identifying areas of opportunity for private equity and investment
  • Identifying business improvements that can generate new markets and efficiencies in the business cashflow
  • Identifying opportunities for re-valuation to improve terms
  • Facilitating discussions with your bank manager to provide owners with transparency and translation of the Banks position on credit and security risks of the client
  • Obtaining clear feedback from the Bank on ‘what they’re really thinking’ and mediate an outcome to reduce current friction
  • Providing timely covenant reporting
  • Formulate strategies to reduce your ‘risk rating’ with the aim of reducing interest margin loading.

Finance Facility Reviews may provide meaningful benefits and real savings for your business.   Speak with our Finance Specialists, Owen Dingle or Angela Winton on 07 3218 3900 for a no-obligation discussion on how we can assist.

 

Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.

Our Expert