Windfall: Supportive measures, companies can now help in the crisis in funding. Source: AP
DÜSSELDORF. Although first glimmer of hope now illuminate the economic horizon: Given the record-breaking economic downturn in 2009 and the loss of the "export world champion" title that seems often quoted "In every crisis there is an opportunity" for many entrepreneurs as a cheap consolation. However: Such distortions in the markets often provide the opportunity of a new orientation, as in view of audiences, distributors or regions. In any case, they are unavoidable reason your strategy to be put under scrutiny and to address structural inefficiencies.
It is always important that key points made early and appropriate set screws are adjusted correctly. Then, companies can save not only their short-term liquidity, they also get the necessary resources to the medium and long term re-established. Good preparation in this case is already half the credit. especially short-term maturities are currently Requested: When the economy in the second and third quarters of stronger gains momentum, jobs have pre-financed and new inventories are built up. Recommended are therefore more likely medium-term financing, which give businesses a predictable, secure liquidity. Even if a medium-term financing is more expensive at first glance, makes the solid obtained by calculation based on this always competitive.
Especially in the transition from a deep recession, it begins to rise to show the negative consequences if the rating companies have given little attention in the past. The slowing economy has been reflected in many cases on the balance sheet numbers, and then led to a decline in its ratings. This result makes it difficult to credit the bank, because the probability of default is and remains the be all and in checking the creditworthiness of a company – but it is not the only criterion.
Thus, for example by the Commerzbank the new assessment model "sustainability analysis" designed and implemented. Besides the classic rating, which reflects the past, flow increased to an aspects of future development opportunities of a company in the credit decision. Come to bear several factors: the attractiveness of the market in which it operates, is based on growth potential, volatility and competitive intensity measure in the relevant market segment. In addition, there is the strategic positioning of the firm’s market position as well as their ability to differentiate again.
The business and client portfolio included access to growth markets, retail dependencies, and the stability of customer relationships and of the book. The cost position of the company be brought by the comparison in the competition, as well as its response to crises and risks of any single commodity and currency dependencies.
The sustainability analysis is supported by relevant benchmarks and expert assessments. It provides loans to companies whose financials might lead to a frown, whose business model is but overall judged to be sustainable.
In practice, the "sustainability analysis" has already been successfully used in the automotive sector and should therefore be gradually expanded to other sectors. Another measure to strengthen the supply of liquidity is the new Special Representative of the Commerzbank Executive Committee for SME loans, which checks the customer’s request already rejected loan applications as a last resort once again.
Improve financial management
Besides predictive models will help many businesses, a closer examination of the actual situation: frequently contains considerable financial reserves that can be targeted by raising debt management. Here it is bound to release liquidity efficiently.
For example, the securitization of assets, a real added value in business financing. This is especially true for the assets, which are found in the balance sheet of almost every business: Receivables from goods and services. Other alternatives the sale of receivables that are still used for rare, factoring and genuine repurchase agreements. For international business provides a forfeiting not only immediate liquidity, but the company also takes the obligor, and country risk of the claim.
Forfaiting is therefore of particular interest to exporters, which have to give credit terms to their foreign customers and also are concerned that political circumstances could prevent the fulfillment of the claim. As a source of liquidity is not to be forgotten after all Borrowing Base Finance, a special form of secured operating loan with respect to the assets.
KfW special help
The liquidity management can free up this way in-house resources, a valuable support is added from the outside: public financial support for restructuring situations. At the federal level, the new KfW Special gaining in importance. The program is divided into three sectors – companies with group turnover up to € 500 million, companies with a group turnover of 500 million euros and project finance – and also includes targeted as an effective means. About the company passed on the relevant bank loans are made available for an optional discharge a liability of up to 90 percent for investment and 60 percent are claimed for equipment financing.
For large companies with a group turnover of more than € 500 million, KfW awards under certain conditions, direct credit as part of banking syndicates. This must be one or more commercial banks Pari-passu and participate together in at least the same level as the KfW to the relevant syndicated, the lead takes a commercial bank.
At the country level, companies can rely on public financial support in the form of state guarantees. These are usually granted if customary banking collateral was not sufficiently available, a positive vote on the loan application but is in the public interest. This is the case for the preservation of jobs.
Additional credits for the middle class
In essence, the examples show that there are many ways for companies to open up even in difficult times, new sources of money. The basic elements are generally loans of the banks. For instance, the Commerzbank be placed now for mid-sized companies with annual sales from 2.5 to 500 million euros, a new loan in the amount of five billion euros, made in the German companies alone made this house a total of around 130 billion euros. The additional funds can be used for various purposes – to finance working capital, as well as for investment.