When a deal fits its policy, the bank is still the cheapest source of finance. The problem is that many good deals are poorly presented and get a no, or a yes with a smaller amount and more collateral than is reasonable.
After 27 years in banking, we know how a credit committee reads a deal. We prepare yours for that reader and take it to the banks that fit.
If any term is unfamiliar, it is explained in our financing glossary.
PRODUCTS
What we finance through banks
Each need has its product. Funding a long-term investment with a working capital line is one of the most common and most expensive mistakes.
Working capital
Credit lines, trade bill discounting, confirming, factoring and trade finance lines. To fund day-to-day operations: stock, customer receivables, supplier payments and seasonality.
Long-term capex
Loans for machinery, industrial buildings, facilities, acquisitions or growth, with personal, mortgage or pledge security, plus leasing and renting. Includes state-guaranteed lines (ICO or others) when available.
WHEN
When it makes sense
- You need to renew or increase credit lines and the bank is asking for more collateral or cutting limits.
- You are about to invest and want to fund it with the right product and tenor.
- You work with several banks and the terms differ at each one. If the debt is already too heavy, see debt refinancing.
- You have assets (property, an investment portfolio) that could support the deal and are not being used.
- You have been turned down and want to know whether the problem is the deal, the bank or how it was presented.
APPROACH
How we approach it
The factors behind the bank’s answer:
Organising the bank pool
What the company has with each bank, at what cost and with what collateral, and where there is room to improve.
Choosing the product and tenor
Working capital funded with working capital and capex with long-term debt, with repayments the cash flow can carry.
Structuring the collateral
Combining security where needed, for example a mortgage over a property and a pledge over a portfolio, to secure the amount without giving more than necessary.
Taking it to the banks that fit
Not every bank has the same appetite for each sector and each deal. Presenting it to those who are active saves time and improves the terms.
CRITERIA
What the bank looks at
- Debt service capacity: whether the cash the company generates covers the repayments with a margin.
- The accounts and their trend: annual accounts, corporate income tax return and interim accounts for the current year.
- Current borrowing: the CIRBE (the Bank of Spain register of the company’s debts with all banks) and other loans.
- Collateral: personal guarantees, mortgages or pledges, and their quality.
- Use of proceeds: what the money is for and whether the product fits that need.
- History with the bank: how the relationship has gone and whether there have been incidents.
METHOD
How we work
- First conversation, free of charge. We look at what you need and what financing you have today.
- Diagnosis. Accounts, CIRBE and bank pool, analysed through a credit committee’s eyes.
- Proposal. Product, tenor, collateral and the banks it should go to.
- Information pack and presentation. We prepare the documentation the way the bank asks for it and anticipate its objections.
- Negotiation and signing. We compare offers and support you through to signing.
Fees: we work mainly on a success basis. Terms are agreed in writing before we start.
QUESTIONS
Frequently asked questions
Why hire someone if I already have a bank?
Because your bank offers what it has, not necessarily what fits best. Comparing banks and presenting the deal properly usually changes the amount, the collateral or the price.
Do you work with all banks?
We work with the main banks and with smaller or specialist ones. On each deal we choose those with appetite for that sector and that type of financing.
What documents do I need?
To start: the latest annual accounts, the corporate income tax return, interim accounts for the current year, the CIRBE report and details of current loans and credit lines.
What if the bank says no?
First we find out why. If the problem is the deal, we restructure it. If it is the bank’s policy, we take it to another bank or look for alternative finance.
Do you work with individuals or sole traders?
No. We work with companies. We do not arrange mortgages for individuals or financing for sole traders.
Renewing credit lines or funding an investment?
Tell us what you need and which banks you work with today. We will tell you how we would approach it. You can also call us on +34 678 131 989.
The information on this page is general and does not constitute an offer of finance. Each deal is analysed individually and approval always depends on the lender. Manifest Investments does not grant loans or arrange mortgage credit for individuals.