Our Services

Capital structure

Understand cost of capital that will enable better pricing of products and services. Capital structure refers to the specific mix of debt and equity employed to fund assets, investments and operations. From a financial perspective, equity represents an expensive but sticky source of funding, providing greater financial flexibility. To the contrary, Debt is largely less costly, finite-to-maturity source that commits a borrower to agreed and promised cash outflows at specified future dates. We help our partners achieve the optimal tradeoffs and balance their capital structure, which will have major positive impact on their cash flow, profitability, risk profile and business continuity.

Credit facilities

Credit facilities vary in type and context. There are many options out there, but there will always be one that fits you, standing out tall amongst the others. This depends largely on capacity, capital structure, collateral, industry, purpose, tenor etc. The situation gets a little more complicated when we dig deeper in credit facilities labels; including uncommitted facilities, committed facilities, bilateral, syndication, club, term loan, revolver, mezzanine and few others. We work with our clients to help them decide on the best option that suits their requirement.

Working capital requirements

Assessment of the working capital needs in terms of amount, type and tenure for proper functioning, including payroll, overhead and other expenses. There are many types of working capital financing. Fitness will depend on its industry, business model, stage of development, and the current assets on the balance sheet. Working capital is the amount of fund needed to bridge the gaps between inflows and outflows in the normal course of doing business. It can be, but not limited to, an Overdraft, Invoice Discounting, Factoring, Trade Finance, Letter of Credit.

Cash flow projections

Cash flow forecasting is the process of estimating the flow of cash in and out of a business over a specific period of time. A fairly accurate cash flow projection helps predict future cash positions, avoid crippling cash shortages, and earn and manage returns on surpluses efficiently. It is a crucial process for assessment of short term and long term liquidity for internal considerations and for banking requirements. We help our clients de-risk the possibility of owing more than they can level with at a future point of time. We will identify and sanitize the key assumptions and push through all limits to create a healthy cash flow that can help lead the business on a path to success.

Zero based budgeting

Zero-based budgeting is a business concept that requires planning the next fiscal year’s budget by starting at “zero.” The process explains and justifies any spending based on needs, rather than history and carry forward. It is particularly effective in dwindling industries and during recessions. Losing the fat and becoming leaner will help refocus all resources towards driving growth. Through this process we help our clients to rigorously review annual budget, financial performance, and instill a culture of cost management amongst all employees. Through the process we shall develop deep visibility into cost drivers and set aggressive, nonetheless, credible budget targets. The annual budgeting process starts from zero and is very detailed, structured, and interactive in order to facilitate meaningful financial debate among all stakeholders. Through new system and process controls, and aligned incentive programs, all employees become first line of defense against unnecessary cost.

Zero based redesign

Simplify the business model to eliminate unnecessary costs. We help our clients rethink what they do, and how they do it, with zero-based redesign. We take a white paper approach to evaluation to simplify the organizational structure, streamline work processes, and possibly uncover digital opportunities. The process delivers speed to value and creates long-term structural change. All activities that are unnecessary for optimum utilization are eliminated and everything, right from organizational structure to the systems, management and accountabilities are fine-tuned to accomplish a customer centric culture at the most adequate cost profile.

Working capital cycle

Assessment of receivables, inventory and payables and ways to reduce the overall cash operating cycle. The cash operating cycle (working capital cycle or the cash conversion cycle) is the number of days between paying others such as the suppliers and receiving cash from sales. This can be a tricky business, for working capital management requires professional independent view, due to potential interactions between its components which can move in opposing directions at any single point of time. Many businesses that appear profitable struggle and eventually close doors due to inability to meet short term obligations at maturity. We help our clients successfully manage their cash operating cycle and essentially remain in business and improve returns on their cash position.

Debt assessment

We assess the debt profile and accordingly we map and recommend the best course of action moving forward. A debt profile refers to the quantum of debt on the balance sheet vis-a-vis other factors including equity, market, industry, age, debt duration etc. Debt capacity can be described as the total amount of debt a company can incur and repay in compliance with the terms of a facility agreement. Being highly leveraged in relation to the quantitative and qualitative attributes of the business means incurring too much debt or taking on the wrong type that can result in damaging consequences. Against this background, we work with our clients to strengthen their debt management capacity to assure that funds are raised in consistence with the budget and debt management objectives.

Facility agreement

Review and sanitize covenants to ease cost of security and minimize opportunity cost. In this day and age, assets support borrowing, which allows for further investment in pledgable assets. We work with our clients to identify the impact of financing frictions on future strategic expansions. The more balanced and reasonable the frictions are, that along with cash flow sensitivities should be increasing assets' availability which is a proxy for pleageability. Beside covenants and tangible assets, personal, joint, and several guarantees certainly represent attractive funding support, albeit at additional cost in the present and future, which dictates broadening contractual clarity on all eventualities. We work with our clients to understand the cost and magnitude of these eventualities and develop an objective framework about the financial prospects of the business and its commercial value, for that a guarantee is not a hypothetical assurance.

Credit policy

A credit policy is a critical document for all kind of businesses. It lays out the business threshold on extending terms to customers and collection on overdue accounts. In the professional world of Credit, a credit policy is a set of guidelines that addresses how a company deal with its customers' credit asks, and establishes a clear course of action for late payments. We help our clients evaluating, writing, or amending their credit policies, as developing and enforcing a business credit policy for all stakeholders is an essential risk management practice to protect companies from doing business with customers that cannot meet their trading obligations.

We help our clients devise an effective credit policy that aligns their corporate goals with business procedures and help the company reduce bad debt and write-offs. We achieve that through assessing the current state, identifying gaps versus best practice, and their adaptation, inclusion, and implementation of a module. We supplement that with training sessions and workshops designed in a manner that minimize exceptions and facilitate business across multiple fronts. This should result in operational efficiencies, strengthening the payment cycles, and enhancing profitability. We view credit policy as a fluid document that needs to be updated periodically to reflect new processes for credit and collections as market conditions changes and tolerance for risk shifts across the business.