Refinance your business loan with independent debt advisory
Refinancing a business loan is one of the most financially significant decisions a corporate finance team will make. Done well, it reduces funding costs, improves covenant flexibility, and positions the business to grow. Done at the wrong time or with the wrong lender, it can lock you into restrictive terms for years.
Aberdeen Capital Debt Advisory (AbCap) provides independent refinancing advisory to Australian corporates, ASX-listed businesses, private companies, and not-for-profits with $10 million to $500 million in debt. We manage the full refinancing process on your behalf, from strategy and lender engagement through to execution and settlement.
What does refinancing a business loan actually involve?
Refinancing replaces your existing debt facilities with new ones, typically to achieve one or more of the following:
- Lower funding costs through a reduced margin, lower fees, or improved benchmark structure
- Extended tenor to reduce refinancing risk and align debt maturity with your business plan
- Improved covenant flexibility to support dividends, acquisitions, or capital expenditure
- Access to additional capital alongside the refinance to fund growth
- A simpler, cleaner facility structure that is easier to manage
The right outcome depends on your circumstances. The starting point is always an honest assessment of what you currently have and what the market can realistically deliver.
Your Capital Debt Advisory
AbCap manages the end-to-end debt raising and refinancing process on your behalf. Our process is built around four pillars.
Planning & Strategy
- Develop a customised funding strategy aligned with your company’s objectives.
- Analyse your financials and forecast capital needs.
- Explore diverse funding options tailored to meet your requirements.
Market Sounding
- Conduct an independent market sounding process to validate the strategy.
- Prepare key materials for lenders (e.g.: Summary Information Memorandum, Financial Model, and Term Sheet.)
- Execute NDAs with selected lenders.
Competitive Debt Offers
- Run a formal Request for Proposals process.
- Guide lenders through their credit process and manage financier Q&A.
- Evaluate and recommend financier responses for your review and consideration.
Documentation & Closing
- Selection of preferred Financier(s) and negotiate final terms.
- Review and progress financial documentation
- Achieve a successful and timely financial close.
Our Typical Capital Management Process
As an independent debt advisory firm, we bring structure and rigour to every capital management engagement.
Identification of Strategy
- Understand your company’s capital strategy and key objectives
- Review and analyse relevant company information
- Discuss various capital levers and company policies (eg: dividend policy, target leverage, cost of capital etc.)
Analysis
- Review your company’s internal financial planning tools, including any financial forecasts and assumptions
- Consider your company’s internal policies and framework such as financial leverage, return metrics, target ratings and risk management policies
- Perform benchmarking of your company’s key metrics against industry peers to compare capital structures
- We can also apply a relevant credit rating methodology for benchmarking purposes where appropriate (eg: Moody’s or S&P)
Summary
- Identify relevant strategic considerations under the various analysis and benchmarks (risk versus reward)
- Provide detailed commentary on considerations for alternative capital management options
- Identify any related and recent examples of capital management initiatives by industry peers
Decision & Implementation
- Provide advice and rationale to assist management to develop and monitor the most appropriate capital structure
- Assist management in reviewing internal documents for board approvals
- Attend board meetings where required
It is our mission to empower you, and your business with tailored debt solutions. Together, we can build your financial success story. Get in touch today to discuss how a review of your debt structure can help you achieve your business growth objectives.