In the history of the global banking system, there will be a before and after Lehman Brothers. Indeed
September 15, 2008, this powerful U.S. financial institution more than a century, ravaged by the subprime crisis as most of its competitors, had to declare bankruptcy and lay on the field its 27 000 employees because she no longer had the necessary liquidity to meet its short term and that the Federal Reserve refused to provide it.
That day, all the bankers of the world have realized that they had entered a new era in which they could be sure of anything, and none of their assets, there is also strong, was to from the risk of impairment at a low price if it is zero.
Their behavior would be felt on the field leading to a credit crunch that universal public authorities strive to loosen the tune of hundreds of billions.
Money has become, since last fall, rare and expensive as a result of risk premia.
Or is this not the essence of the entrepreneur to venture into an establishment or resumed without absolute certainty of success? The money he is looking for is not it called "venture capital" by the lenders?
Thus the buyer would be there today struggling with the worst conditions in its search for funding for his project?
The worst is never sure instead try to analyze the opportunities that the "crisis" will allow us to operate in the new context of financing the economy through the banking system.
A return to fundamentals
This is the signal to the market by the bankers in response to the financial meltdown. This means that extensions of credit will become more selective which does not mean necessarily smaller. Indeed, banks can not afford enough of their income from trading floors to power their net bank or their bank details ... Business financing is a necessity for them, not only for the good they expect profitability but also to create conditions for economic recovery that will benefit them in their other activities.
Competition is also an excellent stimulant that has not disappeared with the crisis.
Thus we can say, in light of accepted cases in recent months that the analytical business plans by bankers gives priority to projects where:
- the payback period or ROI is the shorter forecasting medium to long term is tainted with suspicion in the current situation.
- personal contribution the buyer is significant, reducing the need for bank capital and strengthening the commitment and credibility to the buyer that its forecasts.
- taking into account working capital in financing the operation of the target is overvalued because of the uncertainties thrown up by the poor economic situation of the moment, nobody knows how long it lasts. The robustness of accounts receivable and accounts payable is undermined by a pessimistic view of the duration of the "crisis".
- the financing bank pool is promoted as part of an acquisition company, the importance of the banking agreement being facilitated by the division of risk.
The risk premium for good
It will be understood that the banking system will find its future revival in better risk management than it had done previously and it has a tendency to retain the best projects.
The assembly and presentation folders in this view are of course paramount and the selection of banks approached for financing requests.
We can not recommend enough in this regard to the project promoter does not work alone to enjoy the outside view and enriching his adviser. The Contractor shall
more than ever to first enhance its own personality, best suited to the job or know how needed for success, and convince all his contacts during the period of research funds.
Convince the banker of the quality of the man remains the best antidote to his risk aversion.
Ultimately good projects have become less difficult to find buyers and the competition between lenders can be exercised again.
With rates that will continue to decline significantly in the coming months, the contractor may still manage to wrap fine fixtures, greenhouse leverage interesting and attractive financial cost.
In other words: good ... good project funding!
0 comments:
Post a Comment