Basel critera regulates bank lending to companies
Entrepreneurs who avail themselves of bank loan services should know the effects of the Basel II guidelines (capital requirements) on funding opportunities which became more stringent in the wake of the financial crisis.
We offer you credit consulting designed to improve your current situation in bank negotiations and thus increase funding opportunities in the banking sector at better interest rates. Request our sample rating and find out about our consultancy services.
Professional Rating: Your opportunity for company development
The rating of your company’s creditworthiness of companies according to Basel criteria splits SMEs. A lot of entrepreneurs, especially in SMEs, rely on their gut feeling when taking decisions, but ratings require factual analysis, as they were previously used almost exclusively by large enterprises. Thus, many medium-sized companies are getting into trouble when their instinctive view of their company becomes impossible as the company grows. Their gut feeling is lost, usually by the time the company has 100 to 500 employees or more than three branches. Those who are aware of this danger, recognise the potential of the company’s own rating.
We not only assist you in implementing rating and e-business tools that provide you with an efficient overview of profitability and liquidity, but also in optimizing your balance sheet structure for a cost-cutting rating classification at your bank.
Essentially, liquidity refers to the timely exchange of two or more assets where one of these assets is cash or a monetary equivalent. In practice, this is often a complex and sometimes difficult process. This is especially the case when a company gets into economically unfavourable situations, customers pay late or not at all, investments are needed or banks want to recover their invested capital.
Liquidity management helps meet these challenges:
- Quick overview of the ability to pay in different periods.
- Response to creditors.
- Support in the operational management of liquidity flows.
A diagram showing liquidity development is one of the most important management tools for entrepreneurs and insolvency administrators especially in reorganisations and insolvency cases. If necessary, we will also train your staff in how to prepare more effective cash management statements.
Together we can turn the corner to better results – contact us!