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There are models and models

Have you observed that banks have taken a stricter attitude to the financing of your business or projects? What is your reaction? There are two basic pieces of advice for increasing trust that you might find useful.

In recent years, we have noticed an increased demand for assistance in securing approvals for projects for which external funding is sought by our clients. Banks consider projects presented for financing more stringently. Careful preparation can increase your chances of obtaining financing.

A smoothly running calculation model

Demand in recent months is primarily for model technical assessment, i.e. whether a model works as it should in terms of calculations. In such a case, the client is to provide arguments concerning inputs to the model. The functionality of the model is then confirmed by an independent entity, which gives the model a guarantee of reliability and risk minimisation. And this is probably what the bank primarily looks for.

Database as a basis

Besides the functionality, also the assumptions (i.e. inputs to the model) can be reviewed. There also is a practical side with an additional added value. As a standard, external consultants use subscription databases such as Reuters Thomson One, Amadeus and RoyaltyStat. This allows obtaining market comparables that would otherwise be relatively expensive to get. Then the opinions of financial analysts, brokers and investors are within reach. You can use such information to specify the plans for your own activities, make a qualified decision regarding future investments, and work better with the expected cash flow.

Contact us to find out how we can help you prepare for negotiations with a bank.

 

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