Perspectives

Adressing the financial impact of COVID-19

Credit solutions for companies with urgent cash needs

Public policy measures put in place to contain the spread of Covid-19 are resulting in significant operational disruption for many companies. Staff quarantine, supply chain failures, orphaned/unavailable inventories, and sudden reductions in demand from customers are creating serious issues for companies across a far wider range of sectors than initially anticipated.

A number of our corporate clients now face weeks, if not months, of exceptionally poor trading conditions. For most, the revenue lost in this period represents a permanent loss rather than a timing difference and is putting sudden, unanticipated pressure on working capital lines and liquidity. ​ Some clients are able to maintain adequate headroom by making unseasonal drawdowns on their RCFs. Others are finding that they need to approach their banks to arrange temporarily larger facilities or covenant resets/waivers. In certain cases, the scale and urgency of the funding requirement has taken the company’s management team and its bankers aback.

Questions from your Board that we can help you answer

  • How much money do we need? For how long?
  • How do we slot this new money into our existing capital structure?
  • Who could we borrow from? What terms can we expect?

Download our brochure and contact one of our specialists. 

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