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Capital Strategy Ltd. (CS)
makes projects suitable for bank crediting.
Companies and entrepreneurs that have contacted banks to attract long-term credit resources to finance purchase of capital assets and replenishment of permanent working capital know how much time and effort is consumed by this procedure and how cautiously banks evaluate the creditworthiness of such projects.
Banks, often without the full picture of a client’s long-term solvency (business specifics, project’s risks and prospects, expected cash flows), are frequently forced to postpone their decision or make a negative decision regarding issuing credit.
Based on successful experience of crediting numerous long-term projects, CS evaluates complicated credit deals, incorporating strategic and structural changes into such projects, which make them suitable for bank crediting.
Our partner banks are seeking opportunities for issuing long-term credits, but to make correct credit decisions a bank’s credit committee often needs objective and independent evaluation of project’s long-term solvency – Credit Memorandum®, prepared by Capital Strategy Ltd.
Major sections of Credit Memorandum®
include the following:
| Business: | Evaluation of the long-term viability of the project |
| Management: | Management’s ability to handle crisis situations |
| Strategy: | Prospects of the company-borrower in its industry, considering its strategy and major macroeconomic trends. Which factors will contribute to future sales? (Positioning and competitive advantages, which will pass the “time test”) |
| Financial condition: | Actual cash flow and company’s ability to meet credit obligations |
| Collateral: | Internal value of collateral |
| Deal structuring: | Defining and minimizing project risks |
Capital Strategy Ltd. does not describe business ideas;
we make projects suitable for bank crediting.
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