Battling the coronavirus: proactive approach to financiers necessary
The impact of the COVID-19 pandemic is hitting us all very hard, including the Dutch business community. Many activities are coming to a standstill, sales are dropping sharply or may come to a complete stop. This can quickly lead to a deterioration in your liquidity and possibly to a 'breach' of financial covenants, agreed on in the credit documentation with your financier(s). Much is expected of you in this hectic time.
Examples of a proactive approach
- Don't wait too long to talk to your financier(s). Be proactive and initiate discussions yourself
- Make sure you have access and insight into current (and possibly also future) financial figures, including working capital and cash flow developments
- Prepare various (stress) scenarios and ensure solid assumptions
- Be clear on what you expect from your financier(s), i.e., which points of the current credit documentation should be amended, etc.
Oaklins offers dedicated restructuring advisory
We can help you by performing a quick scan of your current financial performance versus the credit documentation in place. This is in order to prepare and make revised arrangements with your current financier(s), request (temporary) extension of credit facilities, sell non-core assets, find alternative financiers and investors (new equity) and/or restructure your balance sheet. We are seasoned and committed professionals and have extensive experience with such processes.
What we do
- Business reviewing and forecasting to ascertain debt capacity and fundraising options
- Raising different forms of external financing
- Negotiating and proactive approach with current lenders on a reset of covenants
- Maintaining extensive relationships with banks, debt funds, other alternative lenders and equity providers
Battling the coronavirus: proactive approach to financiers necessary
We take great pride in our track record
Our clients' aspirations and challenges are what make us tick, so to us it's natural to develop our market expertise and transactional excellence. Translating this expertise into tangible advice is our way of giving back.
Talk to our specialists in the Netherlands
Oaklins' trusted senior advisors are entrepreneurs and have the skills and experience to deliver excellence for every client, from large nationally and internationally listed companies to midsize private businesses. Our clients find that the faith they put in us is well placed, and that our results keep them on top.
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