Working Capital Funding
Aberdeen Capital Debt Advisory is dedicated to providing bespoke working capital financing solutions for your business. With a focus on empowering your business and providing you access to liquidity, AbCap leverages years of experience and industry relationships to match you with the right financial products to meet your working capital needs.
Is Working Capital Funding the right solution for your business?
When Do You Need Working Capital Funding?
Consider working capital funding when your company faces a need to improve operational cash flow or liquidity to support organic business growth. With an increasing range of working capital products, driven by technology and ease of delivery, a working capital funding solution ensures improvement in liquidity while delivering pricing and diversity benefits.
List of Signs:
- Rapid Growth: Access to liquidity to support the execution of a large order or contract.
- Desire for Improved Cash Flow & Liquidity: A need to improve cash flow and access to liquidity
- Seasonal or Cyclical Sales: Managing fluctuations in cash flow due to high seasonality or cyclical sales
- Cash Flow Gap: Access to working capital to bridge cash flow gaps during slow periods or prepare for peak seasons
- Waiting on Payments from Vendors or Customers: Working capital funding can provide access to the cash earlier, improving cash flow
- Inadequate Cash Reserves: Insufficient cash on hand to cover day-to-day business activities.
Our Typical Debt Funding Process
At AbCap we provide a bespoke debt restructuring service based on your individual needs. Our process typically includes the four pillars below.
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 Financiers (e.g.: Summary Information Memorandum, Financial Model, and Term Sheet.
- Execute Non-Disclosure Agreements (NDAs) with selected Financiers.
Competitive Debt Offers
- Facilitate a formal Request for Proposals process to secure timely and competitive funding.
- Guide financiers 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 capital debt advisory firm we’re committed to empowering you to achieve your financial goals.
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
