How We Do It

Optimise Borrowings

How to optimise, including :- Tendering, Development of term sheets, especially for commodities and selection of best Banks

Evaluating and advising on the structure of borrowings, by reference to the company’s immediate and projected business requirements.

The review addresses areas such as Loan Structures, Loan Maturities, Fixed versus Variable rate arrangements, Currencies, Flexibility to match trading cash flows, Hedging arrangements for current and fixed assets, together with Interest Rates and relevant benchmarks.

Corporate Risk Policy

Defining and how to work with

Finalysis reviews existing corporate risk policy in relation to Liquidity (cost and protection), Maturities, Currency and Interest Rates, checking that corporate policy is fully supported by existing arrangements.

Where, as is common, alternative opportunities for risk management are identified, these are discussed with the client, together with available benefits

Cash Management

How to mobilise and to accelerate internal receipt of value

Cash management arrangements are primarily a matter of transparency – ‘One cannot manage what one cannot see’- and of specific Bank treasury coverage. Quite often, cash management is complicated by its distribution across a number of banks and across various currencies, with actual cash values (statement vs ‘cleared for value’) also being ambiguous. The Finalysis objective is to identify and to manage the net cash position to maximum advantage.

Significant real time value is often lost in transmission between countries. Strategies are available to accelerate value between countries, to provide transparency and to ensure effective control for management.

Currency Management

How to arrange Natural Hedging and minimise the cost of derivatives.

Noting the existing distribution of fixed currency assets and liabilities with relevant hedging arrangements, also all net currency cash flows, forecasts and volatilities, with opportunities for natural hedging, managing the net exposures.

Hedging instruments for residual exposures are noted and measured for cost efficiency.

This is a key area giving rise on the one hand to major exposures and, correspondingly, assuming full transparency of positions, for natural hedging and major cost economies.


While bank borrowings are currently less expensive than heretofore, bank deposits are also at an all-time low (often negative). Accordingly, the deployment of surplus cash has to be undertaken very carefully with due regard to cash flow forecasts and liquidity, security, currency, maturities and the Corporate’s own risk policy.

Bank Charges – Arrangements and Transactions

Review of arrangements and benchmarking of transaction costs.

While bank charges are often viewed as being of somewhat lower importance, there are significant variations in charges across banks and, reflecting the value of the overall bank relationship, these are often amenable to substantial reduction without stressing relationships. Principal sources and levels of costs are identified, and relevant benchmarks are identified for re-negotiation.

Bank Charges can be explicit, e.g. transactions charges or implicit in terms of allowances for credit balances, covenants for variations in loan draw downs, commitment fees, in currency pricing, in set-off arrangements or in delays in clearing funds. All such charges need to be evaluated and minimised.

Finalysis has found that the listing of bank charges has often identified the presence of forgotten, but expensive, accounts and arrangements.

Treasury and Systems


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 full in terms of currency coverage and is appropriate to its requirements, both for managing exposures and for trading.

Treasury systems should provide not only an accurate record of the daily overall position but should also flag current and imminent exposures.

For all but the smaller corporates, the Treasury system is an essential tool for funds transparency and management. ‘You cannot manage what you cannot see’!

Systems are alternatively provided by Banks as part of their offerings, or by external providers. The pluses and minuses, costs and efficiencies, of each need to be evaluated ad hoc, by reference to the Corporate’s own requirements.