Effective process management and strategic debt advisory are essential for the successful execution of raising debt capital for any business. Debt advisors help businesses navigate the complexities of borrowing, managing debt, and optimising capital structures.
At AbCap, we specialise in debt advisory services, offering tailored solutions to help businesses manage their debt and enhance their financial strategies. Here, we discuss the crucial role of debt advisors in today’s business landscape and showcase how we add significant value to our clients.
The Importance of a Debt Advisor
Navigating the ever-evolving financial landscape can be complex and challenging, especially when it comes to procuring debt. The proliferation of non-bank financiers and credit funds has dramatically increased the range of funding options available to businesses, however, navigating these options can be daunting.
A debt advisor plays a pivotal role in helping businesses make well-informed financial decisions. At AbCap, we provide strategic guidance, handle negotiations, and secure optimal pricing and structure to ensure you make the best financial decisions. We use our decades of funding experience and up to the minute knowledge of funding markets for the benefit of our clients.
In order to assist you in making the right decision, let’s delve into the specific ways a debt advisor can benefit you or your business.
Competitive Pricing
One of the primary benefits of working with us as your debt advisor is our ability to secure competitive pricing for loans. By running a debt process that invites multiple lenders to compete, we create competitive tension, which can lead to improved margins and fees. This process can save borrowers significantly, often more than offsetting the advisory fee itself.
Our continuous monitoring of the debt market keeps us updated on current market-acceptable pricing, allowing us to negotiate the best rates for our clients.
Improved Terms
Working with AbCap, you will not just secure your debt at the most competitive pricing, we will also negotiate and improve the terms and conditions of the debt package provided to you by your financier. Leveraging our expertise, we can review terms and conditions of the debt package such as amortisation schedules, definition of covenants, information undertakings requirements, commercial terms and conditions that can lead to Event of Default, to name a few.
Our in-depth market knowledge enables us to identify the best financing options, further reducing not just the monetary cost but also future obligations of the corporate debt.
Optimal Structure
Aside from assisting your debt with competitive pricing and improved terms, AbCap’s experience and knowledge can also assist with future proofing and optimising your debt structure.
An optimal debt structure means having a debt strategy where a company maximises the benefit of using the debt instrument whilst minimising risks. The strategy involves determining the right mix of debt instruments, such as short-term and long-term debt and the appropriate level of security (if any) commensurate with the level of risk.
AbCap can assist with determining the right strategy and aligning it to your company’s financial goals.
Process Management & Information Preparation
Providing relevant information at the commencement of a debt process will allow for a more efficient debt procurement process. At AbCap, our debt advisors streamline this process by working with our clients to gather all necessary documentation and ensure that all information is accurately prepared and presented in a format that typically aligns with financiers’ internal credit assessment requirements.
Our intricate knowledge of the various debt procurement processes (i.e., refinancing, acquisition funding, asset backed lending, securitisation), ability to design bespoke funding plans, foresee and mitigate against potential roadblocks and experience in executing transactions can be invaluable for businesses in securing funding.
While we advocate transparency between borrowers and lenders, we also understand the core information requirements of financiers and can confidently push back against unreasonable information requests.
Lender Relationships
Collaborating with debt advisors can significantly aid in locating a funding partner who comprehends your business and is committed to its growth. Our team of debt advisors possess extensive knowledge of the market and the individuals operating within it, allowing us to identify potential funding partners who align with your businesses’ goals and values. By leveraging our expertise, you can increase the likelihood of securing a funding partner who not only provides financial support but also contributes to the long-term development of your business.
Being The ‘Interpreter’ With Lenders
Financiers often ask a plethora of questions during a process as they learn and understand the business they are potentially lending to. The questions and information requests they make may sometimes feel intrusive or unnecessary. Having an advisor who understands the rationale behind the requests can minimise miscommunication and save time.
Longer-Term Strategy
Perhaps the most significant advantage of working with a debt advisor is our focus on your future. Rather than just securing immediate funding, we help you plan for long-term financial health, ensuring that future lending needs are considered and met without starting from scratch.
Conclusion
There are a myriad of ways a debt advisor can be pivotal in fortifying one’s financial position, from securing competitive pricing and improved loan terms to managing intricate processes and preparing pertinent information.
At Aberdeen Capital Debt Advisory, we understand the value of a strong partnership with debt advisors. Our team of experienced professionals is dedicated to helping you find the right funding partners who align with your business goals and values. By leveraging our expertise, you can increase the likelihood of securing a funding partner who not only provides financial support but also contributes to the long-term development of your business. With our guidance, you can navigate the complexities associated with debt funding and make informed decisions about your business’ financial future.
