Credit solutions for companies with urgent cash needs

Addressing the financial impact of COVID-19 Credit

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 theyneed to approach their banks to arrange temporarily larger facilities or covenant resets/waivers. In certain cases, the scale andurgency of the funding requirement has taken the company’s management team and its bankers aback.

In this article, we discuss reasons why companies may be having issues, suggested approaches, and questions from your Board that we can help you answer

Even for clients who have not yet been adversely affected, we recommend that management teams with concerns about Covid-19 pre-emptively seek new committed facilities (even if not drawn) as a fallback plan in case the period of disruption becomes prolonged.

Download the article here for more on the scale and urgency of the funding requirement.

Combating COVID-19 with resilience

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