Post credit crunch banks are still restoring their own balance sheets and tightening the risk criteria. Maximum debt ratios have come down and money gets scarce. Syndicates (several banks jointly grant a loan) and clubdeals (two or three banks form an informal syndicate) are getting more common. Increasingly, non-bank lenders such as funds step into the remain gap. As a concesequence the rules have changed. Due diligence, legal matters & securities are tightening. And the company’s presentation has to be even more “perfect” than in former years.
Beacon helps you to present your business case and financial projections in a manner which is suitable for banks. We establish contact with various banks, coordinate the due diligence if necessary and negotiate the deal for you. Often, a proposal is not merely rejected, but requires amendments. Requests for more focus on core business, phased capital spending, risk reduction, temporization of new product launches, development of a worst case scenario and reinforcement of management are frequently resulting in a slow down of the credit application process if not properly addressed in advance. We take care of professional documentation, a smooth process and short decision cycles.
Would more equity be required nevertheless, we will also take care of that issue.