TOOL G1
This tool will help you complete the final column on the risk grid (Tool “Risk Grid”) and use your cash flow analysis knowledge to develop business opportunities for your institution.
| Client Need | Products/Services (primarily banking) | |
|---|---|---|
| P. Profits | • Ability to pay operating /interest expenses on time • Ability to invest surplus cash | • Overdraft / short-term loan facility to meet cash flow shortfalls • Operating leases • Place excess cash on deposit |
| A. ACC | • Paying suppliers | • Supplier checks • Import L/C • Documentary payments • Clean payments • FX hedging • ST loans |
| • Production cycle | • Post import financing • ST loans • Inventory finance (on or off balance sheet) • Pre export finance | |
| • Sales cycle of products/services | • Buyer checks • Export L/C • Documentary collections • Clean collections • FX hedging • ST loans • Account receivable securitization • Factoring / Invoice discounting • Export financing | |
| C. Capex | • Purchase of fixed assets | • MT loans (bilateral, syndicated, mezzanine, subordinated etc) • Leasing (financial or operational) • Arranging debt or equity finance through private placement • Financial advisory |
| • Production of new fixed assets | • Development loans • Project finance | |
| • Disposal of fixed assets | • Sale and leaseback • Purchase of fixed asset by SPV • Asset securitization | |
| E. Equity | • Raising new / additional equity • Share buy back • Dividend policy | • Financial / equity and debt capital advisory • Arranging / underwriting new issue (public or private placement) • Arrange debt to support new capital structure |
| D. Debt | • Raising new / additional debt • Increasing rates • FX volatility | • Financial advisory • Arranging / underwriting new issue (public or private placement) • Cash management (cash pooling, zero balancing) • Refinancing • FX hedging • Interest rate hedging • Swaps |
