Corporate Bank Loans
Benefin provides comprehensive service of the process of planning, application, structuring and contracting of corporate bank loans. Our approach is thorough and detailed.
There are several critical issues when it comes to bank loans and their handling determines the feasibility of using bank loan funding and ultimately the lending decision of the banking institution.
We focus on the following key elements:
- Modelling of the main source of repayment – the available free cash flow based on a detailed financial model of the income statement, the balance sheet and the cash flow statement.
- Appraisal of credit risk, including stochastic modelling of risk, which is makes a material difference in pricing
- Appraisal of the debt capacity of the business entity and the optimal debt to equity ratio.
- Development of a loan repayment plan and the pricing of debt (likely interest rate determination).
- Appraisal of the value, liquidity and sufficiency of secondary sourves of repayment such as assets and collateral.
- Financial and legal structuring of the transaction
Debt restructurings including consolidations, early repayments, swaps, prolongations and MBO/LBO debt funding represent special situations and often involve several additional procedures and preliminary operations.
Bank and non-bank lending and leasing institutions
Benefin maintains close contact with all well-reputed bank and non-bank lending institutions in Bulgaria and quite a few leading names in the main global financial centers including but not limited to London, Frankfurt, Vienna, Zurich and Tokyo. We avoid working with Hong Kong and Singapore as we do not have the resources to properly conduct KYC and counterparty DD procedures. It is our policy to protect you from entering into transactions with aggressive and overly expensive debt finance providers which destroy value and unnecessarily limit the flexibility of management with unreasonable covenants.
How do we add value?
- Proper financial model, value and risk appraisal.
- Proper credit and other risk assessment which puts us and you in strong negotiating position.
- Realism regarding collateral assets, their value, liquidity.
- Optimal capital structure that not only safeguards you from undue risks but also provides for tax savings.
- Reasonable covenants negotiation, and proper definition of covenants so that the achieve their goals but do not strangle the business.
- Reasonable pricing of loan given, time to maturity, currency denomination, risks, collateral and any other relevant parameters.
- Knowledge of the risk appetite and limits of the various participants in the lending market which saves you time effort and costs.
- Contacts and networking.
- We leave you focus on your main business and just get the funding job done.
- Спестяване на време и усиия
Get in touch with us and you will be best able to assess our strengths and ways we can add value in your debt raising plans.