The number of financing options available to small- and medium-sized companies nowadays is higher than ever before. The range extends from revolving credit facilities provided by relationship banks to mezzanine to tailor-made private debt solutions. As banks continue to withdraw predominantly from more „challenging“ cases for regulatory reasons, new financing providers have been entering in the market. However, this also increases complexity.
Wide range of financing options depending on business needs
Access to alternative financing outside the banking market for weaker credit profiles
So much on offer, many alternatives. The choice has long since ceased to be just bank financing or capital markets – medium-sized companies in particular have more financing options available to them than ever before. However, the building blocks have to fit together and leave the necessary room for manoeuvre. Gracher has a broad skillset of experience in debt financing – and knows what is important in complicated situations where standard financing solutions are simply not sufficient.
New providers of financing
Regulatory requirements have forced traditional banks to largely withdraw from lending to companies with weak credit profiles. A large number of alternative financing providers have filled this gap. This applies equally to both internal and external financing. Numerous factoring companies, inventory and commodity financing specialists, as well as private debt funds and mezzanine providers, are opening up new ways of financing. Even capital markets have become an attractive financing option for the relatively publicity-shy SMEs. Today, the classic overdraft or revolving credit facility is only one building block in a company’s capital structure.
This is why Gracher is the right partner for you when it comes to financing
With Gracher Debt Advisory, Germany’s largest surety service provider also offers you access to other attractive financing instruments that are precisely tailored to your company and financing needs.
- Our financing and surety/guarantee expertise enables „one stop“, fully integrated financing solutions
- Broad, international experience in debt financing
- Core competence: complex situations that require more than standard solutions
- Excellent network of alternative financing partners as well as banks covering all available financing products
- The Gracher Group has all the necessary regulatory approvals and competences for providing financial advice to corporates in the DACH region
The service of Gracher Debt Advisory covers the entire financing process, including
- Planning, structuring and implementation of a suitable financing structure
- Preparation of company presentations, information packages and marketing documents
- Building of financing and cash flow models
- Support in the preparation of a business plan
- Selecting and approaching potential lenders (banks, private debt and mezzanine funds, leasing and factoring companies, subsidy programmes and real estate financiers) according to your needs
- Involvement of equity providers (private equity, family offices, investment companies, venture capital and strategic investors) as appropriate
- Leading negotiations on financing documents
Financing solutions: the right mix is key
The vast choice of financing alternatives overwhelms many finance departments of small and medium-sized corporates: While most know the local bank market, they‘re now confronted with a lack of experience and intransparent market to find the best financing option for the company. Specialised financial advisors such as Gracher therefore help to find the right building blocks. Terms, tenors, security packages or loan volumes are just a few of the factors that must fit the current – but also the future – situation of the company.
The big advantage for companies at the moment: The still benign economic environment in combination with low financing costs offers an ideal setting to negotiate attractive terms (also beyond pricing) and to now secure a long-term, forward looking financing for years to come.
Gracher Debt Advisory covers these financing products:
- Bank loans (RCF, syndicated loan, etc.)
- Sureties, guarantees, surety bonds
- Factoring and reverse factoring, as well as warehouse/inventory financing and other asset-based financings
- Leasing and sale-and-lease-back
- Project finance
- Subsidy programmes (e.g. EIB SME loans, etc.)
- Private Debt
- Private placements, promissory note loans and bonds
- (High yield) bonds and convertible bonds
- Restructuring loan solutions
- Equity financing (private equity, investment companies, family offices)
Private debt offers flexible, bank-independent debt financing, especially for companies with weaker credit ratings, which can be interesting for a wide range of industries, company sizes and financing occasions.
As a mixed form of equity and debt, mezzanine (also called hybrid financing or hybrid capital) allows capital injection, even if the classic borrowing is already exhausted.
The revolving credit facility (also called working capital credit) is the overdraft facility for the company: quick help for short-term or unforeseen liquidity gaps.