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QIBD are positioned to facilitate the best and most suited programme or facility that best meets your needs. Offering specific solutions and providing all-in collateral lending packages designed to fit your business requirements.
For young companies and companies experiencing tough financial times, it is not always easy to convince your company bankers to grant finance and loans when they are needed the most. It is common to find highly geared companies in times of recession and often companies have borrowed to the hilt of their assets. Some young companies may not have any borrowings at all; not because they are financially independent, but because banks and lenders will not grant any credit to them.
Bankers and Lenders alike will demand security for any loans or investment. If the company has already used available equity or does not have access to strong security, the options of borrowing are dramatically decreased.
Shareholders can of course be approached to raise further capital and the options of Bond Offerings and Private Placements may also be made. However, these avenues are not always the best course of action, or the most economical. They can be long, drawn-out processes and the company may not have the time or the money to launch such complex financial actions.
In these circumstances, it may simply be preferable to import or lease collateral assets to offer as security for conventional borrowings.
Through Collateral Management and Security Leasing programmes, QIBD have experience in introductions and facilitation of collateral and security to potential borrowers on short to medium term leases that the borrowers can use to secure further bank borrowings with their conventional bankers or from lending facilities arranged through our partnerships.
By providing Financial Guarantees or Third Party Corporate Guarantees from multi-national conglomerates working closely with QIBD, potential borrowers will find it easier to obtain bank borrowings and attract further investments.
Financial Guarantees, Third Party Guarantees (‘White Knight’ Guarantees) and Collateral Leasing can prove an effective solution to increase borrowings or for financing temporary, short-term gaps and can be efficiently used as bridging finance.
To understand these procedures and to receive more information, we would be very pleased to hear from you.
Raise capital and utilise Stagnant assets to create cash generation.
Many businesses and corporations regardless of size or stature will acquire and hold assets of some nature. As the business grows, so does its assets. Often through the growth process, the older assets or under-used assets may begin to take a lower priority over newer and larger assets used by the business. It may also be the case that assets may be acquired and used to secure loans, debts and other repayment obligations. Some assets are more liquid and used to create investment returns. Cash may be invested into bonds and other bankable securities and the business may utilise the returns and retain the capital on its accounts.
There are many types of assets, those that are liquid (Cash/Bonds), those leaning toward liquid (Short Term/Property), those that are less liquid (Long Term/Static) and those that are very illiquid that we would term ‘Exotic’ (Rights, Sub-terrain assets, etc). These assets can be depicted in an ‘Asset Spectrum’.
When it comes to raising capital against assets, conventional banking facilities offered from high street and mainstream banks can often utilise the more liquid assets and a greater Loan to Value ratio can be achieved.
However, when it comes to the longer-term, less liquid assets and of course the exotic assets, many businesses would struggle convincing a conventional bank to grant credit facilities over these.
That does not mean that they cannot be utilised. Assets falling into these categories can be used through the creation of bespoke financial structures to create cash flow, raise capital and enhance balance sheets.
More liquid assets such as bonds and property can also be used to maximise returns where they are not already encumbered. Whilst these assets may already produce monthly or annual returns, the capital held within these assets may still be regarded as ‘stagnant’ as the capital is simply sitting there. It is possible to tap this equity (without risk) to produce enhanced returns up to 12% gross per annum* in addition to (and unaffecting) existing returns.
By using these stagnant assets (often difficult to identify from the company accounts), our Clients can;
To find out how your business can use its stagnant assets more efficiently or to make an application for raise capital, please contact our expert team who will be able to offer you guidance and advice and establish the necessary no-obligation consultations.
* Subject to 12 month commitment. Returns may vary. This does not constitute an offer of investment.
Raising funds against varied portfolios can be a laborious process. When portfolios of assets are not conventional (i.e. real estate, instantly liquidable stocks, tangible assets), most conventional bankers will hesitate at offering leverage or loans.
Through extensive partnerships and associations with private and institutional investors, QIBD are able to link you to facilities against unconventional portfolios that may include junk bonds, foreign bank notes, contested LC’s, debt obligations and low-rated bonds. In addition, supply contracts, rights and licenses may also be used to raise funds.
Physical portfolios such as artworks, antiques and collections (stamps, motor vehicles, exotics) may also be included.
Tapping equity of encumbered exotic assets and tapping the unused capital element of investments can equally be accommodated for short to mid term borrowings at very competitive rates.
As well as direct loans and Lombard loans, such portfolio assets can be used in various collateral management programmes to create annuities and fixed incomes with little or no risk, maximising the earning potential of almost any portfolio or asset base.
To see how your portfolio can be optimized for maximum gain, please contact us where our expert partners will be able to advise how you can raise money or an annual income against your portfolio or assets base.
Every once in a while it is important to review the debt platform of the business and its group structure. To analyse the group structure in relation to debt security and cross-company guarantees to economise and minimise waste. It may be the case that assets are still bound by the bank or other lenders for unused overdrafts or assets have risen in value since the last valuation and high value assets may be securing small debts at high rates. Alternatively, assets may have been devalued by your Lenders and interest rate increases may have been applied.
There are many objectives for a company to restructure its debt;
Debt restructure can take many forms. It may involve the creation of special purpose vehicles and securitisation techniques, converting current debt into non-recourse loans, off-balance sheet. It may mean the renegotiation with existing lenders and the partitioning of encumbered assets.
With the objectives of the restructure firmly in mind, QIBD can create complex financial structures that minimise the impact of debt repayments, isolate potential bad debt and protect the company’s main assets from any form of claim or repossession. This type of debt restructure may be crucial for companies facing hard financial crisis.
Debt Restructure is not only for troubled or stressed companies – it promotes financial health and assures financial efficiency.
When selling companies or parts of a company group, debt restructure may be crucial to aid the sale. To remove liens and charges over assets being used for cross-company guarantees and to isolate debt in a given subsidiary or separate corporate vehicle.
It is also important to track the best rates for borrowings and to ensure that corporate loans are properly match-funded; short-term assets are matched with short-term borrowings and long-term assets are matched with long-term borrowings. To be ‘rate efficient’ can assist in the company’s cash-flow.
Whatever the objective, QIBD can offer concrete advice and create the necessary structures needed for efficient and sustainable debt restructure.
To speak with one our partners about how we can help you restructure your debt, lower debt commitments or isolate troubled subsidiaries, please contact us in the strictest confidence.
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