The banking relationship is vital for the growing corporate. Finalysis’ objective is to ensure that all banking arrangements are appropriate and sufficiently flexible to accommodate operating volatilities and expansion, ensuring minimum risk and lowest cost. We specialise in providing
The Finalysis Mission:
Optimisation of Borrowings
This involves evaluating and advising on the structure of borrowings, by reference to the company’s projected requirements. The review addresses: Maturities, Fixed versus Variable rate arrangements, Currencies, Flexibility, Hedging arrangements and interest Ratings, also having regard to relevant benchmarks.
Distribution of Currency Assets and Cash
This involves noting the existing distribution of fixed currency assets and liabilities with relevant hedging arrangements, also all net currency cash flow forecasts and volatilities, with opportunities for natural hedging, then managing the net exposures. Hedging instruments for the residuals are noted and measured for cost efficiency
Corporate Risk Policy
Finalysis establishes existing corporate risk policy in relation to Liquidity, Currency and Interest Rates, checking that corporate policy is fully supported by existing arrangements. Where alternative opportunities for risk management are identified these are discussed, together with available benefits.
Bank Deposits and Liquid Investments
In today’s environment of low or no interest being paid on available benefits, it is important to be aware of other safe financial outlets for cash. Such opportunities are identified to clients, with available benefits
Bank and Transactions Charges.
While these may be viewed as being of somewhat lower importance, there are significant variations across banks and, reflecting the value of the overall bank relationship, these are often amenable to substantial reduction without stressing the bank relationships. Benchmarks are available for reference.
Cash Management Arrangements
Cash management arrangements is primarily a matter of transparency ‘One cannot manage what one cannot see’. Too often cash management is made difficult by its distribution across a number of banks and various currencies, with actual cash values also being ambiguous. Strategies are available to provide transparency and to ensure effectiveness for management.
Treasury systems are a must for the larger corporates. However, there are wide variations between systems and it is important for the corporate to have a system which is appropriate to its requirements, both for managing all risks and for trading in currencies.