Battling the financial impact of the coronavirus: proactive approach towards financing banks necessary
The COVID-19 pandemic has hit us all very hard, and the Danish business community has already been severely impacted. Many companies will experience that activities come to a standstill and that sales drop, and for some companies, it may come to a complete stop. This can quickly lead to a deterioration in your liquidity and possibly to a 'breach' of the financial covenants, governing the credit documentation with your financing banks. Much is expected of you at this hectic time.
Examples of a proactive approach
- Don't wait too long to talk to your financing banks. Be proactive and initiate discussions yourself
- Make sure you have access and insight into current (and possibly also future) financial figures, including working capital and cash flow developments
- Prepare various (stress) scenarios and ensure solid assumptions
- Be clear in what you expect from your financing banks. On which points should the current credit documentation be amended for example
Oaklins offers dedicated restructuring advisory
We can help you with performing a quick scan of your actual financial performance versus your credit documentation in place. This is in order to prepare and make revised arrangements with your current financing banks, request (temporary) extension of credit facilities, sell non-core assets, find alternative sources for capital including financial investors (new equity) and/or restructure your balance sheet. We are seasoned and committed professionals and have extensive experience with such processes.
What we do
- Business reviewing and forecasting to ascertain debt capacity and fundraising options
- Raising different forms of external financing
- Negotiating and proactive approach with current lenders on a reset of covenants
- Maintaining extensive relationships with banks, debt funds, other alternative lenders and equity providers
Oaklins' trusted senior advisors are entrepreneurs and have the skills and experience to deliver excellence for every client, from large nationally and internationally listed companies to midsize private businesses. Our clients find that the faith they put in us is well placed, and that our results keep them on top.